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Data Center Construction Market (By IT Infrastructure: Networking Equipment, Servers, Storage; By Power Distribution and Cooling Infrastructure: Power Distribution, Cooling; By Tier Type: Tier 1, Tier 2, Tier 3; By End Use: IT & Telecom, BFSI, Government & Defense, Healthcare, Energy, Others; By Size of Data Center: Small and Medium-Scale Data Center, Large-scale Data Center) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032
The global data center construction market size was valued at US$ 230 billion in 2022 and is expected to hit US$ 243.80 billion by 2032 with a CAGR of 6.50% from 2023 to 2032.
Data Center Construction Market in U.S. 2023 To 2032
The U.S. data center construction market size reached US$ 64 billion in 2022 and is predicted to touch US$ 117.34 billion by 2032, growing at a CAGR of 6.30% from 2023 to 2032.
North America dominated the market in 2022 with revenue share of 45%. The U.S. dominated the data center construction market in North America region. The factors such as growing number of investments in technological sectors as well as technological developments are driving the growth of data center construction market in North America region.
Asia-Pacific is expected to develop at the fastest rate during the forecast period. China and India dominate the data center construction market in Asia-Pacific region. The growth of data center construction market in Asia-Pacific region is being driven by growing government initiatives for deployment of cloud-based platforms for storing data on a large scale.
The data center is a place where huge amount of data is stored with the help of various kind of servers, computer systems, and network systems. The construction of data center is not an easy task. It requires location and resources. This means the data center construction is quite expensive in nature. The data centers are constructed for various sectors and industries such as IT and telecom, BFSI, energy, and healthcare.
The growth of global data center construction market is being driven by the expansion of information technology sector. Various advanced and innovative technologies are used for the construction of data centers. Those technologies are internet of things, big data analytics, and artificial intelligence. This factor is propelling the growth of global data center construction market over the forecast period.
In addition, growing environmental concerns regarding greenhouse gases emissions and carbon emissions is paving new way for the growth of global data center construction market. This has increased the demand and need for the construction of green data centers on a large scale. The green data centers do not emit any type of toxic gases in the environment. This factor is boosting the growth and development of global data center construction market.
Another factor driving the growth and expansion of worldwide data center construction market is growing government initiatives. Even government sectors also need data centers to collect and store data and information on a large scale. Therefore, government are heavily investing in the construction of data centers. This factor is supporting the growth of global data center construction market.
On the other hand, the factors such as concerns regarding data privacy and security and high cost of construction of data centers are restricting the expansion of global data center construction market. The data and information stored in data center is very crucial and confidential in nature. Once the data is hacked, it takes time to restore. This factor is hindering the data center construction market growth.
The market for data center construction is highly fragmented with multiple significant competitors. Many organizations are expanding their market reach as a result of technical improvements and product breakthroughs by gaining new contracts and tapping new markets that contribute to fierce competition.
| Report Coverage | Details |
| Market Size by 2032 | USD 429.70 Billion |
| Growth Rate from 2023 to 2032 |
CAGR of 6.50% |
| North America Market Share in 2022 | 45% |
| Cooling Segment Hit The Revenue Share in 2022 | 60% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | IT Infrastructure, Power Distribution and Cooling Infrastructure, Tier Type, End Use, Size of Data Center, Geography |
| Companies Mentioned | Page Southerland Page, Syska Hennessy Group, Holder Construction Group, Turner Construction Company, Jones Engineering Group, DPR Construction, Arup Group, Corgan Associates Inc., AECOM, Gensler |
The server segment accounted the largest revenue share 53% in 2022. The growth of the segment is being driven by the adoption of advanced technologies such as artificial intelligence and internet of things. In addition, government initiatives for deployment of servers in hyperscale data center are boosting the demand for servers.
The networking equipment segment is projected to witness strong growth during the forecast period. The increased need and demand for high computational capacity and memory space to support big data analytics and artificial intelligence driven applications fueled the networking equipment demand.
The cooling segment hit the revenue share 60% in 2022. The data centers need cooling systems for maintaining temperatures and humidity levels. It has been observed that data centers get heated easily at utmost temperature. Therefore, cooling systems have become essential part for data centers.
The power distribution segment is expected to witness remarkable growth over the forecast period. Managers of data centers are seeking for ways to improve energy efficiency while still providing a highly flexible information technology environment that can support service-oriented designs. Despite the fact that software and storage are all becoming more adaptive, nothing in the data center can adjust as quickly as the power distribution networks.
The IT and telecom segment accounted revenue share 40%. The growth of data center construction market in IT and telecom sector is attributed to the growing number of smartphone and internet users. In addition, the adoption of 5G network technology is also gaining traction in IT and telecom sector. All of these factors are driving demand for data centers.
The BFSI segment is expected to hit strong growth from 2023 to 2032. Banking, Financial Service, and Insurance (BFSI) collects and stores huge amount of data related to clients and customers. The storage of data is done with the help of data centers. Several banks and financial institutes are using data centers for storage of information and data. Thus, these factors are boosting the growth of global data center construction market.
The tier 3 segment accounted market share of around 52% in 2022. The growth of tier 3 segment is attributed to the enhanced reliability among data centers. In addition, the growing demand for high performance processing and expanded storage capacity is paving way for the growth of the segment. Moreover, tier 3 standard is used across service and banking sectors.
The tier 2 segment is fastest growing segment of the data center construction market over the forecast period. The tier 2 facilities help to provide power backup to the data centers. In addition, tier 2 enhances cooling efficiency of systems. Due to all these benefits, the segment for tier 2 is growing at a rapid pace.
Key Developments
Segments Covered in the Report
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By IT Infrastructure
By Power Distribution and Cooling Infrastructure
By Tier Type
By End Use
By Size of Data Center
By Geography
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