Data Center Construction Market Research Report, By Design Type (Electrical Construction, Mechanical Construction), Tier Type (Tier 1, Tier 2, Tier 3, Tier 4), Verticals (BFSI, IT & Telecommunication, Media & Entertainment, Oil & Energy, Public Sector) – Global Forecast till 2030

Data Center Construction Market Overview

Market Research Future (MRFR) prevising the Data Center Construction Market size estimated to expand at a CAGR of 13.51% from 2022 to 2030. The large volume of data consumed on a daily basis, combined with the rapid emergence of data center facilities, is expected to increase market demand over the forecast period. The sharp rise in the rate of adoption of IoT devices can have a positive effect on market growth. Demand for energy-efficient data centers is expected to open up growth opportunities for the Data Center Construction Market in the coming years. This, in turn, is expected to push the purchase of low-heat building materials. The adoption of green strategies, like the reuse of waste and evaporative cooling, is likely to support this trend.

COVID-19 Impact on Data Center Construction Market

The COVID-19 pandemic occurred at a time when demand for data center capacity is rapidly expanding, and restrictions on the construction of new facilities have been applied. There is a certain effect on the industry, as data network traffic has gained increased traffic by increasing the use of applications such as Zoom, Microsoft Office, etc. However, according to the trend force, 3.2 million server unit shipments were recorded in Q2 2020. In addition, the pandemic created difficulties in the development of a data center due to disruptions in the supply chain, which will slow down market growth. ​

Data Center Construction Market Dynamics

Drivers

Significant increase in the volume of data generation

The rising penetration of connected devices and easy access to the internet, combined with declining internet service prices, has resulted in a growing demand for data storage worldwide. This is due to the growing demand for big data analytics and cloud-based services, like online content, including movies, apps, videos, and social media. As per Cisco Systems, the proportion of data center traffic generated by the cloud added up to about 1.2 zettabytes of data, and this comprised 46% of total traffic. In addition, the company estimated the data center traffic to rise to 69% or 5.3 zettabytes of all data traffic in 2017. This has resulted in cloud-based companies deploying more IT space in their data centers. Several industries are exploring cloud offerings and finding the benefits of data center services to meet their cloud-related needs. These advances are directly influencing the growth in the Internet of Things (IoT) and the data needs of companies, resulting in the construction of a large number of data centers across the globe. As a result, the increasing volume of internet data generation is expected to fuel demand for their storage and is expected to generate a range of lucrative opportunities for data center construction market players in the coming years.

Data Center Construction Market Segmentation

Global Data Center Construction Market has been segmented into design Type, Tier Type, and Verticals.

By design type, the global data center construction market has been segmented into electrical construction and mechanical construction.

By tier type, the global data center construction market has been segmented into Tier 1, Tier 2, Tier 3, and Tier 4.

By verticals, the global data center construction market has been segmented into BFSI, IT & Telecommunication, Media & Entertainment, Oil & Energy, and Public Sector.

Data Center Construction Market Regional Analysis

North America to lead the global market

North America dominated the data center construction market, accounting for the largest revenue share of more than 40.0% in 2019, followed by the Asia Pacific. North America's high revenue share can be attributed to aggressive investment in hyperscale projects. The U.S. is a developed economy and already boasts a well-established, advanced network infrastructure. It is also home to major cloud service providers, including Amazon.com, Google, Inc., and Facebook. These companies are investing in the development of mega facilities for additional data storage and processing capabilities, thereby opening up opportunities for business growth.

Data Center Construction Market Competitive Landscape 

The global data center construction industry is a highly competitive market that is affected by a variety of factors, such as the rising number of IoT devices, increasing data traffic, and environmental regulations. The growth of market vendors depends on market conditions, government support, and the development of the industry. Significant players in the industry compete in terms of design construction type, availability of raw materials, and price of data center components. In particular, these companies concentrate on data centers and electrical construction. Many small and large industry participants occupy the data center construction market. Global players are expected to enhance their global presence through organic and inorganic growth during the forecast period.

Vendors with better technological and financial resources can develop new products that can give them a competitive advantage in the data center construction market. Vendors also need to develop new technologies and keep abreast with emerging technologies that could impact the continued competitiveness of their product lines in the market.

Key Players

• Page Southerland Page (U.S.)


• Holder Construction Group (U.S.)


• Gensler (U.S.)


• Syska Hennessy Group (U.S.)


• DPR Construction (U.S.)


• Turner Construction Company (U.S.)


• AECOM (U.S.)


• Arup Group (U.K.)


• Structure Tone (U.S.)


• Jones Engineering Group (Ireland)


• HDR Architecture (U.S.)


• Corgan Associates Inc. (U.S.)

Data Center Construction Market Recent Developments

In August 2020, Arup was awarded for a sustainable summit empowering supplier to build a sustainable supply chain. The awards also include the development of a Carbon Management Plan for the event and coordinating with main suppliers to build a sustainable supply chain. Award recognition will boost the company's global revenues and increase profits.

Data Center Construction Market Report Overview

This report forecasts revenue growth at global, regional, and national levels and provides insight into the new updates in each of the sub-sectors from 2018 to 2023. For the purpose of this study, MRFR divided the global data center construction market report by design type, tier type, vertical, and region.

Segmentation Table

By Design Type

• Electrical Construction


• Mechanical Construction

By Tier Type

• Tier 1


• Tier 2


• Tier 3


• Tier 4

By Verticals

• Public Sector


• Oil & Energy


• Media & Entertainment


• IT & Telecommunication


• Banking, Financial Services, Insurance (BFSI)