According to the new research report on " Data Center Construction Market Forecast to 2030 - Global and Regional Share, Trends, and Growth Opportunity Analysis," published by The Insight Partners, the data center construction market size is expected to reach US$ 234.85 billion in 2022 and is expected to reach US$ 448.14 billion by 2030; it is estimated to record a CAGR of 8.4% from 2022 to 2030.

Data Center Construction Market Trend:

Increasing Adoption of Green Data Centers

A green data center is designed to achieve maximum energy efficiency and decrease the environmental impact. As a result, strategies to reduce carbon footprint are used within the data centers, including the use of low emission building materials, minimizing carbon footprints, water and waste recycling, and making use of alternative energy technologies. These alternative technologies include heat pumps, photovoltaic, and evaporative cooling. To achieve energy efficiency and control operations costs, several companies, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are already implementing measures to reduce electricity and water usage in the data centers. Microsoft has made significant investments in renewable energy to power its data centers. The company has also implemented innovative cooling technologies, such as underwater data centers and modular data center designs, to improve energy efficiency and reduce water usage. Furthermore, these companies are installing water-saving cooling devices and energy-efficient equipment in addition to making essential changes in the data center's design. Although the construction of a green data center is initially expensive, it offers savings on operations, power, and maintenance in the long run. Also, green data centers offer a healthy work environment for the employees. Various companies are launching new green data centers. For instance, in October 2022, PhonePe announced the launch of its first green data center in India, leveraging technologies and solutions from Dell Technologies and NTT. Thus, the increasing adoption of green data centers is anticipated to fuel the data center construction market size in the coming years.

Data Center Construction Market Segmental Overview

The data center construction market analysis has been carried out by considering the following segments: type of construction, Tier design, and industry vertical. Based on type of construction, the data center construction market is segmented into general construction, electrical construction, and mechanical construction. Based on Tier design, the data center construction market is segmented into Tier 1 and Tier 2, Tier 3, and Tier 4. Based on industry vertical, the data center construction market is segmented into IT & telecom, BFSI, government, manufacturing, retail, transportation, media & entertainment, and others.

Tier 4 data center is expected to grow with the highest CAGR in the market. Tier 4 data centers, also known as fault tolerance data centers, provide an uptime of 99.995%, with 2N+1 redundancy in IT infrastructure, and offer 96 hours of power outage protection and 26.3 minutes of annual downtime. The infrastructure is built over Tier 3 data centers by adding the concept of fault tolerance in existing system components. These data centers integrate all the features of Tier 1, Tier 2, and Tier 3 data centers. The power and cooling components of Tier 4 data centers are used by two different utility power suppliers, two UPS systems, two generators, two cooling systems powered by different utility power services, and two power distribution units (PDUs). All this IT equipment is fully redundant, i.e., if one of the cooling or power infrastructure components fails, it will recover and continue powering the system without any issue. It will stop functioning only if two different cooling or electrical paths fail. The requirement of rigorous uptime and long-term feasibility are a few reasons for the adoption of Tier 3 and Tier 4 data center constructions over Tier 1 and Tier 2.

A Tier 4 data center is the highest certification in the Uptime Institute's system of segmenting data center performance into four tiers. This tier accounts for an expected uptime of 99.995% per year. Tier 4 data centers provide the highest level of uptime and fault tolerance, making them ideal for mission-critical applications such as financial services, healthcare, and telecommunications. As these sectors grow and digitalization continues, the demand for Tier 4 facilities rises, which boosts the number of new construction projects and fuels data center construction market growth.

Additionally, Tier 4 data centers command premium pricing compared to lower tiers due to their advanced infrastructure and stringent operational requirements. This leads to higher profits for construction companies and data center operators, attracting significant investment for construction of new data centers. The construction of Tier 4 data centers requires expertise from various industries, including electrical and mechanical engineering, construction materials, and specialized IT equipment. This stimulates growth in these related industries, creating additional employment opportunities and economic benefits. Furthermore, companies such as EBRC comprise several tier 4 data centers named Resilience Centre West, CTRLS Datacenters Ltd., Windhof, Resilience Centre South, Kayl, European Reliance Centre East, Betzdorf, and Sunbird Inc. Thus, the growing construction of Tier 4 data centers is expected to present a promising opportunity for the data center construction market growth during the forecast period.

Data Center Construction Market Competitive Landscape and Key Developments

Rittal GmbH & Co. K.G.; Schneider Electric SE; DPR Construction Inc; Mercury Engineering Ltd; STO Building Group Inc; AECOM; HOLDER CONSTRUCTION COMPANY; Turner Construction Co; Eaton Corp Plc; and Nikom InfraSolutions Pvt. Ltd. are among the prominent players profiled in the data center construction market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. Several other essential data center construction market players were analyzed to get a holistic view of the market and its ecosystem. The data center construction market report emphasizes the key factors driving the market and prominent players' developments.

Key Findings of Study:

The market for data center construction in the Middle East & Africa (MEA) is growing with the rising establishment of numerous companies and the increased penetration of mobile users in the region. The market has recently evolved, and several colocation service providers are considering offering data center services in the region. Green building regulations and environmental goals of energy sustainability are identified as one of the major growth trends fueling the MEA data center construction market share.

Additionally, the growth of the data center construction market in South America is largely driven by fast-paced technological advancements, owing to the remarkable growth of smartphones and the day-to-day streaming of big data. The region accounts for approximately 80% of the urban population residing in cities that have registered massive adoptions of social media. A few of the key provinces of the region have ubiquitous technology, and this has resulted in expected transformations by the digitally smart technologies of the region. Further, the region faces challenges with building suitable data centers, which sometimes incurs larger CapEx & OpEx. However, the rapid development of IT infrastructure in Brazil is expected to fuel the SAM data center construction market share.


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