Data Center Construction Market by Construction Type, Tier Standard, Organisation Size, End-user

Description

List of Tables

[184 Pages Report] The Data Center Construction Market size was estimated at USD 218.86 billion in 2023 and expected to reach USD 236.50 billion in 2024, at a CAGR 8.53% to reach USD 388.19 billion by 2030.

Data center construction refers to the process of designing, building, and commissioning facilities that house computer systems and components, such as telecommunications and storage systems. These facilities are critical for the storage, management, and dissemination of data for businesses, governments, and other entities. The expansion of data center utilization can be attributed to multiple factors, including the rising volume of data generated by digital transformation, the widespread adoption of cloud services, and the growing reliance on artificial intelligence and big data analytics. However, data center construction faces challenges owing to high capital expenditure, energy consumption, and the need for skilled professionals to manage advanced data center environments. Despite these challenges, the emergence of 5G technology, the incremental demand for edge computing, and the ongoing innovations in energy-efficient building solutions present new growth avenues for market players.

KEY MARKET STATISTICS
Base Year [2023]	USD 218.86 billion
Estimated Year [2024]	USD 236.50 billion
Forecast Year [2030]	USD 388.19 billion
CAGR (%)	8.53%

Regional Insights

The Americas are seeing robust growth in data center construction, largely driven by an increasing demand for cloud services and a surge in data consumption. Significant investments from major tech companies in setting up state-of-the-art data center facilities further propel market growth. Europe shows steady growth in the data center construction market, influenced by stronger data protection regulations that require companies to keep some data within local territories, which has increased the need for localized data centers. The Middle East, although at a nascent stage, is rapidly growing due to the digital transformation initiatives by regional governments. Africa, while still an emerging market, shows potential owing to growing internet penetration and mobile usage. Asia-Pacific is witnessing rapid growth in data center construction. This growth is stimulated by the rapid expansion of digital services and an increase in demand from populous countries, including China and India. Improvements in telecommunications infrastructure and government support for digital economies are significant drivers. Additionally, large-scale investments by local and international companies are enhancing the overall market prospects in this region.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Data Center Construction Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Continuous expansion of data generation with emerging trend of digitalization
- Rising shift towards cloud-based technology solutions

Market Restraints
- High initial construction costs and economic feasibility

Market Opportunities
- Growing innovations in the development of data center energy-efficient construction technologies
- Increasing investments to develop green data centers

Market Challenges
- Certain technical limitations with the data center construction solutions

Market Segmentation Analysis
- Construction Type: Growing number of greenfield projects due to flexibility with design and layout
- End-user: High potential of data center construction across the BFSI sector to maintain robust security

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Construction Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Construction Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Datar Announces Commencement of Innovative Data Centre Project in Relligen, Germany

Datar, an IT infrastructure provider, has initiated the construction of a state-of-the-art data center in Relligen, Germany. This strategic development is expected to bolster the region's digital infrastructure by using cutting-edge technology to ensure high efficiency and sustainability. The facility covers a significant area of 150,000 square meters, providing vast data management capabilities to meet the increasing demand for IT services in Europe. [Published On: 2024-03-18]

Expansion of CyrusOne's Infrastructure with New Data Center in Frankfurt

CyrusOne, a global real estate investment trust dedicated to data center facilities, has initiated the construction of its fifth data center in Frankfurt, located in the suburb of Hanau. The Hanau data center, strategically positioned 25 kilometers east of Frankfurt, is intended to complement the existing infrastructure and enhance connectivity solutions for CyrusOne's clients. In sync with contemporary environmental standards, the data center is designed to achieve LEED certification, underscoring CyrusOne's dedication to sustainability. [Published On: 2023-12-01]

IBM Announces Construction of Its First European Quantum Data Center

International Business Machines Corporation announced plans to establish its inaugural quantum data center in Europe, a strategic development aimed at supporting the region's rapidly expanding quantum computing ecosystem. The data center is designed to bolster local innovation and collaboration within the field of quantum physics and to meet the growing demand for quantum computing resources across various industries. [Published On: 2023-06-06]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Construction Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Data Center Construction Market, highlighting leading vendors and their innovative profiles. These include AECOM, Arup Group Ltd., Bechtel, CAP INGELEC, Clune Construction Company, Collen Construction Limited, CyrusOne, dataR GmbH, DigitalBridge Group, Inc., DPR Construction, Equans Data Centers, Exyte GmbH by M+W Group, Fortis Construction Inc., Hensel Phelps & Company, HITT Contracting Inc., J. E. Dunn Construction Group, John Sisk & Son, M.A. Mortenson Company, Mercury Engineering, Nikom InfraSolutions, Soben, STO Building Group, Suir Engineering Ltd, Turner Construction Company, and Zublin AG.

Market Segmentation & Coverage

This research report categorizes the Data Center Construction Market to forecast the revenues and analyze trends in each of the following sub-markets:

Construction Type
- Brownfield Projects
- Greenfield Projects

Tier Standard
- Tier I & II
- Tier III & IV

Organisation Size
- Large-Scale Enterprise
- Small & Midsize Enterprises

End-user
- Banking, Financial Services, & Insurance
- Government & Defense
- Healthcare & Pharmaceuticals
- IT & Telecommunications
- Manufacturing
- Power & Energy

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Ireland
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-43531DF27CDB

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Continuous expansion of data generation with emerging trend of digitalization
  - 5.1.1.2. Rising shift towards cloud-based technology solutions
- 5.1.2. Restraints
  - 5.1.2.1. High initial construction costs and economic feasibility
- 5.1.3. Opportunities
  - 5.1.3.1. Growing innovations in the development of data center energy-efficient construction technologies
  - 5.1.3.2. Increasing investments to develop green data centers
- 5.1.4. Challenges
  - 5.1.4.1. Certain technical limitations with the data center construction solutions
5.2. Market Segmentation Analysis
- 5.2.1. Construction Type: Growing number of greenfield projects due to flexibility with design and layout
- 5.2.2. End-user: High potential of data center construction across the BFSI sector to maintain robust security
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Data Center Construction Market, by Construction Type

6.1. Introduction
6.2. Brownfield Projects
6.3. Greenfield Projects

7. Data Center Construction Market, by Tier Standard

7.1. Introduction
7.2. Tier I & II
7.3. Tier III & IV

8. Data Center Construction Market, by Organisation Size

8.1. Introduction
8.2. Large-Scale Enterprise
8.3. Small & Midsize Enterprises

9. Data Center Construction Market, by End-user

9.1. Introduction
9.2. Banking, Financial Services, & Insurance
9.3. Government & Defense
9.4. Healthcare & Pharmaceuticals
9.5. IT & Telecommunications
9.6. Manufacturing
9.7. Power & Energy

10. Americas Data Center Construction Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Data Center Construction Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Data Center Construction Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Ireland
12.8. Israel
12.9. Italy
12.10. Netherlands
12.11. Nigeria
12.12. Norway
12.13. Poland
12.14. Qatar
12.15. Russia
12.16. Saudi Arabia
12.17. South Africa
12.18. Spain
12.19. Sweden
12.20. Switzerland
12.21. Turkey
12.22. United Arab Emirates
12.23. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Datar Announces Commencement of Innovative Data Centre Project in Relligen, Germany
- 13.3.2. Expansion of CyrusOne's Infrastructure with New Data Center in Frankfurt
- 13.3.3. IBM Announces Construction of Its First European Quantum Data Center
13.4. Strategy Analysis & Recommendation

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio