Data Center Construction Market

Global Data Center Construction Market Is Estimated To Witness High Growth Owing To Increasing Demand for Cloud Computing

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The global Data Center Construction Market is estimated to be valued at USD 53,870.5 million in 2021 and is expected to exhibit a CAGR of 7.4% over the forecast period 2021-2028.

Market Overview:

Data center construction involves the design and construction of physical infrastructure required for data center operations. This includes the construction of server rooms, electrical and mechanical systems, cooling systems, and networking infrastructure. Data centers are essential for storing, managing, and processing large amounts of data generated by various industries. In today’s digital age, where organizations rely heavily on cloud computing, big data analytics, and artificial intelligence, there is a growing need for robust data center infrastructure.

Market Key Trends:

One key trend driving the growth of the global Data Center Construction Market is the increasing demand for cloud computing. With the rapid digitization of businesses and the increasing adoption of digital services, organizations are relying on cloud-based platforms to store and access their data. This has led to a significant increase in the demand for data centers to support cloud computing infrastructure. According to industry estimates, the global expenditure on public cloud services is expected to reach USD 500 billion by 2023. This surge in cloud computing adoption is driving the construction of new data centers to cater to the growing demand.

For example, major players in the Data Center Construction Market, such as DPR Construction, Inc. and Turner Construction Co., are actively involved in the construction of data centers for leading cloud service providers. These companies are expanding their capabilities to meet the increasing demand for cloud-based services and are investing in state-of-the-art infrastructure to provide scalable and efficient data centers.

PEST Analysis:

– Political:

Governments across the globe are focusing on the development of digital infrastructure to support economic growth. They are implementing policies and regulations to provide a conducive environment for data center construction.

– Economic:

The growing digital economy and increasing demand for cloud computing are driving investments in data center construction. The market is witnessing significant investments from both public and private sectors.

– Social:

The proliferation of smartphones, increased internet penetration, and changing consumer behavior towards digital services are fueling the demand for data centers.

– Technological:

Advancements in technology, such as edge computing, artificial intelligence, and the Internet of Things (IoT), are driving the need for more sophisticated and efficient data center infrastructure.

Key Takeaways:

– The global Data Center Construction Market is expected to witness high growth, exhibiting a CAGR of 7.4% over the forecast period, due to increasing demand for cloud computing. Organizations are increasingly relying on cloud-based services to store and access their data, driving the need for robust data center infrastructure.

– North America is expected to dominate the global market, owing to the presence of major cloud service providers and increased investments in data center construction.

– Key players operating in the global Data Center Construction Market include DPR Construction, Inc., Turner Construction Co., Holder Construction Company, Hensel Phelps Construction Co, Balfour Beatty US, Helix Electric, Sudlows, Kraus Anderson Construction, The Beck Group, PCL Construction Enterprises, The Walsh Group, Hill International, and Engineered Structures, Inc. (ESI). These companies are actively involved in the construction of data centers and are investing in advanced technologies to meet the evolving needs of the market.

In conclusion, the global Data Center Construction Market is witnessing significant growth due to the increasing demand for cloud computing. As organizations continue to rely on digital services and generate large amounts of data, the construction of robust data center infrastructure becomes crucial. With advancements in technology and changing consumer behavior towards digital services, the market is expected to grow at a steady pace in the coming years.