Data Center Construction Market, By Data Center Type (Small, Medium, Large), By Infrastructure (Electrical, Mechanical, Networking), By End use (BFSI, Energy, Government, Healthcare, IT & Telecommunication, Manufacturing) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Data Center Construction Market size was estimated at USD 201 billion in 2023 and is projected to reach USD 343.29 billion in 2030 at a CAGR of 6.92% during the forecast period 2023-2030.
Data center construction is the process of designing, building, and maintaining a physical system that includes computers, servers, storage devices, network equipment, UPS, and other systems needed for data storage, processing & distribution. A data center is a central hub that provides control to ensure the stable operation of IT infrastructure and critical services.
The growth of the data center construction market is being propelled by the rise in data consumption and the demand for cloud computing from enterprises. In 2021, the market for data center construction is expected to be revitalized by the gradual resumption of construction activities for various data center facilities, which were temporarily halted due to the lockdown measures imposed worldwide in response to the COVID-19 pandemic. Additionally, the initiation of new IT projects is set to contribute to the revival of this market. Furthermore, continuous investments in the construction of hyperscale facilities, which accommodate IT infrastructure, cooling equipment, and power equipment, are also anticipated in this market.
The data center construction market in 2020 was significantly affected by the COVID-19 pandemic, with various markets experiencing its impact. The construction industry, in particular, faced hindrances due to the pandemic, resulting in project timeline delays and disruptions in the supply chain. The implementation of travel restrictions, lockdown measures, and safety protocols has had a profound effect on the availability of construction materials and labor, thereby presenting logistical challenges and causing delays in the execution of data center construction projects.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The surge in the desire for cloud services will propel market expansion throughout the projected period. The swift embrace of cloud computing by diverse industries is augmenting the demand for data centers. Cloud service providers necessitate resilient and capacious data center infrastructure for the purpose of hosting and delivering their services. The demand for hyperscale data centers and colocation data centers persists in its growth as more organizations resort to cloud solutions. Cloud computing empowers enterprises to proportionally adjust their IT infrastructure in accordance with the evolving requirements. Organizations can also effortlessly expand or contract their computing resources as necessitated. In order to bolster the aforementioned efficacy, cloud service providers require data centers that possess the flexibility to adapt to cloud applications and services. These factors have led to the expansion of the market and increased demand for Data Center Construction solutions.
North America to Dominate the Market