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Global Data Center Construction Market to Grow at a CAGR of 9% during 2022-2027, Impelled by the Rapid Growth of IT Industry

Published on Mar 22, 2021

According to the latest report by IMARC Group, titled “Data Center Construction Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the global data center construction market was worth US$ 47.2 Billion in 2021. Data center construction involves planning, engineering, project management, preventative maintenance and building data centers. It primarily focuses on designing data centers that are disaster tolerant, require minimal wiring and can accommodate all servers and equipment for current and perceived future use. The construction of data centers is a complex and time-consuming process that plays an essential role in managing IT-related systems and equipment for an organization. The demand for new data centers is further increasing with the rising number of devices connected to various public and private networks, advanced software development, and installation systems, which are driving organizations to adopt advanced storage and processing solutions.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global Data Center Construction Market Trends:

The global data center construction market is primarily driven by the growth of the IT sector and the increasing penetration of connected devices. Data center construction consists of backup power supplies, data communication connections, security devices, air conditioning, and fire suppressants. These components aid in improving the computing ability, memory, storage resources, and networking infrastructure. The rising Internet of Things (IoT) applications, demand for cloud-based services, and development of edge computing are positively impacting the market growth. Besides this, green data centers are increasingly gaining prominence due to the utilization of low-emission building materials that help create sustainable ecosystems. Furthermore, leading public cloud providers, such as Microsoft, Google, and Amazon, are continuously investing in the construction of high-end IT infrastructure using liquid cooling technology and direct-to-chip cooling server racks to prevent overheating in data centers. On account of these factors, the market is expected to grow at a CAGR of 9% during the forecast period (2022-2027).

Market Summary:

  • Based on the construction type, the market has been segmented into electrical (UPS, Rach power distribution unit (PDU), generators, transfer switches and switchgears, and others) and mechanical construction (cooling systems, racks, and others). 
  • The market has been categorized on the basis of the data center type into mid-size, enterprise, and large data centers.
  • On the basis of the tier standards, tier III is the leading segment, accounting for the majority of the overall market share. Other major tier standards are tier I and II, and tier IV.
  • Based on the vertical, the market has been divided into public sector, oil and energy, media and entertainment, IT and telecommunication, banking, financial services and insurance (BFSI), healthcare, retail, and others. Amongst these, the IT and telecommunication segment dominates the market.
  • On the geographical front, North America (the United States and Canada) exhibits a clear dominance in the market. Other major regions are Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa (Turkey, Saudi Arabia, and others).
  • The competitive landscape of the market has been examined, with some of the key players being AECOM, DPR Construction Inc., Eaton Corporation Inc., Fujitsu Limited, Holder Construction Company, Legrand SA, Rittal GmbH & Co. KG, Schneider Electric SE, Tripp Lite, Turner Construction and Vertiv Group Corporation.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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