Data Center Construction Market By Construction Type (General Construction, Electrical Design, Mechanical Design), By Tier (Tier 1, Tier 2, Tier 3, Tier 4) By Data Center Size (Small Data Center, Medium Data Center, Large Data Center) By Industry Vertical (BFSI, IT And Telecommunications, Healthcare, Government, Manufacturing, Others) : Global Opportunity Analysis And Industry Forecast, 2024-2032
Data Center Construction Market
The data center construction market was valued at $212.6 billion in 2023 and is projected to reach $416.4 billion by 2032, growing at a CAGR of 7.4% from 2024 to 2032.
Data center construction refers to the building of infrastructure that houses computer systems, its servers, and other associated components such as networking devices and storage systems. The role of data center facilities is to store and manage large volumes of data, along with offering support to web hosting, cloud computing, and enterprise IT operations.
With rapid transformation toward automation and digitalization, enormous amounts of data are being generated currently. This boosts the requirement for effective data storage and management, thereby driving the growth of the data center construction market. In addition, the adoption of cloud services is compelling the construction of new data centers to support the service providers. With rising concerns pertaining to sustainability, the trend of green construction is gaining significance in the market. This involves the usage of renewable energy sources and cutting-edge cooling solutions during construction. Moreover, the obtainment of green building certifications such as Leadership in Energy and Environmental Design (LEED) is becoming a standard in several regions.
However, the expense involved with the construction of data centers is substantially high. This limits the expansion of the market, particularly in the developing regions. Furthermore, compliance with the rigorous regulations implemented for data center construction is an intricate and time-consuming process, which constrains market development. For instance, approvals for data centers in India lack a single window clearance mechanism as they require the applicants to visit different departments for various permissions.
Segment ReviewThe data center construction market is segmented into construction type, tier, data center size, industry vertical, and region. On the basis of construction type, the market is divided into general construction, electrical design, and mechanical design. As per tier, it is classified into tier 1, tier 2, tier 3, and tier 4. Depending on data center size, it is categorized into small data center, medium data center, and large data center. According to industry vertical, it is segmented into BFSI, IT & telecommunications, healthcare, government, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of construction type, the general construction segment accounted for a high market share in 2023.
As per tier, the tier 3 segment is growing at the highest CAGR during the forecast period.
Depending on data center size, the large data center segment is expected to account for the highest CAGR by 2032.
According to industry vertical, the IT & telecommunications segment was the highest shareholder in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global data center construction market include Cisco Systems Inc., IBM Corporation, Oracle Corporation, ABB Ltd., Hitachi Ltd., Equinix, Inc., Schneider Electric, Huawei Technologies Co., Ltd., Fujitsu, and Hewlett Packard Enterprise. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy Construction TypeGeneral Construction
Electrical Design
Mechanical Design
By TierTier 1
Tier 2
Tier 3
Tier 4
By Data Center SizeSmall Data Center
Medium Data Center
large Data Center
By Industry VerticalBFSI
IT and Telecommunications
Healthcare
Government
Manufacturing
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market Players
Cisco Systems Inc.
IBM Corporation
Oracle Corporation
ABB Ltd.
Hitachi Ltd.
Equinix, Inc.
Schneider Electric
Huawei Technologies Co., Ltd.
Fujitsu
Hewlett Packard Enterprise