The market for data center construction is expected to grow at a CAGR of around 6.5% from 2020 to 2027 and anticipated to reach the market value of around US$ 333.5 Bn by 2027.

Data center construction is a complex and time-consuming process primarily focused on designing and building a data center with basic characteristics like desired capacity, disaster tolerance, and efficient design. Data center are an important asset of an organization operating online or processing or storing data. Some of the major factors need to be considered while constructing a data center that includes the right location for the building, awareness about the infrastructure needs, familiarity with the equipment, climate control infrastructure is must, fire protection needs and keeping end-users requirement in mind. Some of the data center construction companies and their revenue from the segment in 2016 include Turner Construction Co. (US$ 1,041.0 Mn), Holder Construction (US$ 883.0Mn), DPR Construction (US$ 684.5 Mn), and Fortis Construction (US$ 600.446 Mn)

Market Dynamics

The growing demand for cloud Size of Enterprises due to the increasing utilization of cloud storage in various industry verticals is fueling the market growth. According to Oracle's Cloud Prediction of 2019, approximately 80% of all enterprise workloads will move to the cloud in the immediate near future. The growing adoption of a software-defined data center in the healthcare sector is further proliferating the market value. The growing demand for hyperscale data centers in large enterprises which are used in different sectors to increase computing ability, memory, networking infrastructure, along with storage resources is additionally driving the market growth.

On the other side, the risk associated with data privacy and virus attacks are likely to hinder the growth to an extent over the forecast period from 2020 to 2027.

Regional Instance of Global Data Center Construction Market

North America accounted for the maximum revenue share in the Data Center Construction Market

In 2019, North America is leading the market with a major share (%) in terms of revenue, and the region is also projected to maintain its dominance over the forecast timeframe from 2020 to 2027. The presence of major players in the region is additionally bolstering the regional market value. The rapidly increasing data volume in the regional market owing to the increasing number of online users is further supporting the regional market value.

Some of the biggest names in the data center construction in the US are Google, Amazon, and Facebook. According to Google CEO Sundar Pichai, the company is likely to invest upwards of US$10 Bn in U.S. offices and data centers in the coming year. The company also has a data center across the country.

Amazon has also invested heavily in Northern Virginia’s Data Center Alley and has also expanded the investment in January 2020. The online retailer has spent US$ 73 Mn on purchase of 100 acres land in the Virginia town of Chantilly and Ashburn. In March 2020, the company has planned to fast-track the construction of three data centers in Loudoun County and Virginia. Additionally, Facebook has a number of major data center projects under construction across the country (US).

Key Market Value

The players profiled in the report include AECOM Ltd., Clune Construction Company, L.P., CyrusOne Inc., Cyxtera Technologies Inc., DPR Construction Inc., Fortis Construction Inc., Gilbane Building Company Inc., Hensel Phelps Construction Co. Inc., HITT Contracting Inc., IBM Corporation, JE Dunn Construction Group Inc., MA Mortenson Company Inc., Nabholz Corporation, RagingWire Data Centers Inc., SAS Institute Inc., and Turner Construction Co.

Market Segmentation

Market By Infrastructure

Electrical Infrastructure

Mechanical Infrastructure

General Construction

Market By Types of data centers

Enterprise data centers

Managed services data centers

Colocation data centers

Cloud data centers

Market By Tier Type

Tier 1 Data Center

Tier 2 Data Center

Tier 3 Data Center

Tier 4 Data Center

Market By Size of Enterprise

Small and Medium-Scale Enterprises

Large-scale Enterprises

Market By End-User

BFSI

IT and Telecommunications

Government and Defense

Healthcare

Energy

Other

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa

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