North America Data Center Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

North America Data Center Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

The North America Data Center Construction Market size is estimated at USD 22.40 billion in 2024, and is expected to reach USD 34.60 billion by 2030, growing at a CAGR of 6.20% during the forecast period (2024-2030).

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the North American data center market is expected to reach above 25,000 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 85 million sq. ft. by 2030.
• Planned Racks: The region's total number of racks to be installed is expected to reach more than 4 million units by 2030. The United States is expected to house the maximum number of racks by 2030.
• Planned Submarine Cables: Close to 100 submarine cable systems connect North America, and many are under construction. One such cable, GigNet-1, started its service in 2023. It stretches over 1,104 kilometers and has landing points in Boca Raton, United States.
• North America dominates the global market for building data centers. A strong economy and cutting-edge network infrastructure drive the market's expansion. The United States dominates the regional market and has many significant cloud service providers, including Amazon.com, Google Inc., and Facebook. These businesses invest in building massive data centers and increased data storage and processing capabilities, which present enormous market prospects.

North America Data Center Construction Market Trends

United States to hold the Major Market Share

• The US market is the most mature and is seeing steady growth in terms of growth and operations. The rise of the us data center construction industry is attributed to the increasing success of IoT, the development of 5G networks, and the adoption of cloud-based services by businesses. Adopting digitalization across industries will contribute to a rise in data center investments by colocation, cloud, internet, and telecommunication providers, as well as the demand for streaming online entertainment content at high speeds.
• The country's data center development is expected to grow owing to a rise in rack power density, connectivity improvements with other nations, the installation of microgrids in data centers, 5G connectivity, edge data center technology, and new UPS battery technologies.
• The US government is encouraging data center investments by various means, including increasing the availability of land for development, lowering electricity tariffs, and promoting the procurement of renewable energy. For example, Arizona state offers various incentives to businesses that operate in the foreign trade zone. Businesses in a trade zone are entitled to a 72.9% reduction in state real and personal property taxes. Consequently, such initiatives will contribute to the growth of the data center construction market in the United States over the next decade.
• In the United States, data center players often prefer intelligent PDUs due to their comprehensive features that include monitoring, metering, and remote-control capabilities.
• The major operators that offer PDUs in the United States market include Raritan Inc. (Legrand), Enlogic (nvent), ABB Ltd, Tripp Lite (Eaton), LayerZero Power Systems, Vertiv Group Corp., Schneider Electric, Hubbell, and Toshiba International Corporation.
• Furthermore, these players focus on investing in product development and expanding production capacity across the region to remain competitive and gain market share. For instance, in 2023, ABB Ltd announced the launch of a next-generation three-phase power distribution unit, TruFit PDU. This is the first multifunctional PDU from ABB Ltd that provides a holistic view of equipment health and performance. It is developed to handle highly configurable data center projects.

Healthcare End-user Vertical Holds the Significant Market Share

• Data center construction in the healthcare sector is expected to witness substantial demand during the forecast period due to the growth in digital data owing to technological advances and government incentives to implement Electronic Health Records (EHR) and the proliferation of IoT and smart devices in the country's healthcare sector. In addition, the increased enforcement of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) security is further forcing healthcare organizations to upgrade data security and disaster recovery protocols or face high penalties.
• Moreover, with the introduction of the Electronic Medical Records (EMR) mandate in the United States, healthcare organizations nationwide have adopted cloud-based healthcare solutions to store and protect patient records. Most hospitals and healthcare organizations use cloud storage for patients' healthcare data. Electronic health records are stored in the cloud and updated electronically by physicians, nurses, and other healthcare providers. Such factors augment the demand for data center construction, owning to the growth in digital data in the healthcare sector.
• The digitization of consumer healthcare records in the form of electronic medical records (EMR) has significantly contributed to massive data generation. The latest innovations in medical equipment and the modernization of legacy operating systems, such as the management of personnel and the improvement in the patient response systems, generate a multitude of data, further necessitating the need for secured data center construction initiatives in the country.
• Furthermore, the country's government continuously recognizes the role of digital health and technological innovation in healthcare as an integral part of successful healthcare infrastructure. The government is making significant strides to make the healthcare sector technologically advanced and continuously increasing its healthcare expenditure to support the healthcare sector. For instance, according to the data from CMS (Office of the Actuary), the forecasted US national health expenditure was expected to reach USD 6751.4 billion in 2030 from USD 4297.1 billion in 2021.

North America Data Center Construction Industry Overview

North America's data center construction market is moderately fragmented, with the top five companies occupying most of the market share. The major players in this market are AECOM, DPR Construction Inc., Fortis Construction Inc., Whiting-Turner Contracting Company, and Skanska USA.

In June 2023, EdgeCore Digital Infrastructure announced an agreement with Bandwidth Infrastructure group, providers of dark fibers, to connect Bandwidth IG's San Francisco Bay Area network to EdgeCore's Silicon Valley data center campus in Santa Clara with up to 5 points of connection for 72MW IT load capacity.

In January 2023, Metro Edge finalized agreements with Clune Construction and other construction companies to design and build the data center facility. The project is expected to have full entitlements within the next few months and break ground shortly after.

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• The market estimate (ME) sheet in Excel format
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