Data Center Construction Market is Expected to grow at a robust CAGR of 7.28% through 2029F
The
increasing global data center construction market is driven by growing demand
for cloud computing, proliferation of big data and IoT during the forecast
period 2025-2029F.
According
to TechSci Research report, “Data
Center Construction Market - Global Industry Size, Share, Trends,
Opportunity, and Forecast 2019-2029F", The Global Data Center Construction Market was valued at USD 225.15 Billion in 2023 and is expected to reach USD 346.32 Billion by 2029 with a CAGR of 7.28% during the forecast period. The rapid expansion of the e-commerce industry significantly drives growth in the global Data Center Construction market. The surge in online shopping has increased data volumes, necessitating robust IT infrastructure to support e-commerce operations. Data centers are crucial in maintaining the seamless functioning of e-commerce platforms, handling transactions, and securing customer data. Major e-commerce players like Amazon, Alibaba, and eBay are investing heavily in expanding their data center capacities to meet rising demand. These facilities support essential functions such as inventory management, payment processing, customer relations, and targeted marketing. Scalability and reliability are pivotal for data centers to manage traffic surges during peak periods like Black Friday and Cyber Monday. Moreover, the shift towards digital payments and the use of data analytics in consumer insights further underline the need for advanced data center solutions. As global e-commerce continues to grow, the demand for data centers is expected to remain robust, driving the market forward.
In the global data center construction market, implementing stringent security and compliance measures is a critical trend. With increasing cyber threats and data breaches, securing data centers is paramount to protect sensitive information, comply with regulations, and maintain customer confidence.
Data center operators are investing in both physical and digital security measures. Physical security enhancements include access controls, surveillance systems, and fortified perimeters. Advanced fire suppression systems and redundant power supplies bolster operational continuity and safeguard against physical threats. Digitally, data centers deploy sophisticated cybersecurity technologies such as AI, machine learning, firewalls, encryption, and multi-factor authentication to counter cyber risks effectively. Compliance with regulations like GDPR and HIPAA is integral, ensuring legal adherence and customer trust. New data center projects integrate these security and compliance measures from inception to uphold the highest standards..
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Data Center Construction Market"
Based
on End-User Industry, IT & Telecommunications transfers dominated in the
global Data Center Construction market in 2023. The exponential growth in
digital data generated by IT companies and telecommunications providers
necessitates scalable and secure data storage solutions. Data centers serve as
the backbone for storing, processing, and managing vast amounts of digital information
generated from applications, websites, and telecommunications networks. As
these industries expand their digital services, including cloud computing, big
data analytics, and streaming services, the demand for advanced data center
facilities continues to escalate.
The rapid adoption of emerging technologies such as 5G, Internet of Things
(IoT), artificial intelligence (AI), and machine learning (ML) further drives
the need for enhanced data processing capabilities. These technologies require
low latency and high-speed data transmission, which are facilitated by
geographically distributed data centers strategically located closer to
end-users. Additionally, the IT & Telecommunications sector places a
premium on data security and regulatory compliance. Data centers must adhere to
stringent security standards to protect sensitive information and ensure data
privacy. This focus on security drives investments in state-of-the-art data
center infrastructure equipped with advanced security measures, including
biometric access controls, surveillance systems, and encryption protocols. The shift towards remote work and digital transformation initiatives
accelerated by global events, such as the COVID-19 pandemic, has heightened the
reliance on digital infrastructure. IT companies and telecommunications
providers are investing in expanding their data center footprint to support
remote operations, online collaboration tools, and virtual services
effectively.
Based
on region, Asia Pacific is the fastest growing region in the global Data Center
Construction market during the forecast period. The region is witnessing rapid
digital transformation across various sectors, including banking,
telecommunications, healthcare, and e-commerce. This digital revolution is
generating unprecedented volumes of data, necessitating robust data center
infrastructure to support storage, processing, and analysis requirements. Moreover,
the adoption of cloud computing services is expanding significantly in Asia
Pacific. Businesses are increasingly leveraging cloud solutions for
scalability, cost-efficiency, and flexibility, which in turn drives demand for
data center facilities. Major global cloud service providers are investing
heavily in the region to meet this growing demand, further boosting the
construction of data centers.
The proliferation of mobile devices and internet connectivity is fueling data
consumption across Asia Pacific. Countries like China, India, Japan, and South
Korea are experiencing a surge in internet users and mobile subscribers,
resulting in higher data traffic and storage needs. This trend is particularly
pronounced in urban areas where digitalization and smart city initiatives are
driving the deployment of data-intensive technologies such as IoT and AI. Furthermore,
favorable government policies and initiatives are fostering a conducive
environment for data center investments in Asia Pacific. Governments are
prioritizing infrastructure development and digital economy initiatives,
offering incentives and streamlined regulatory frameworks to attract
investments in data center construction. Countries like Singapore, Hong Kong,
Australia, and India have emerged as key data center hubs in the region due to
their supportive policies and strategic geographic locations.
In
terms of economic growth, Asia Pacific continues to exhibit robust GDP
expansion, which correlates with increased demand for digital services and data
center capabilities. This economic dynamism creates opportunities for
businesses to expand their operations and invest in scalable IT infrastructure,
including data centers. The shift towards sustainable practices is influencing
data center construction in Asia Pacific. There is a growing emphasis on
energy-efficient and environmentally sustainable data centers, driven by
regulatory requirements and corporate sustainability goals. As a result, new
data center projects in the region often incorporate green building standards
and renewable energy solutions.
Key
market players in the global Data Center Construction market are: -
- Turner Construction Company
- Holder Construction Group, LLC
- DPR Construction
- Hoffman Structures Inc.
- Hensel Phelps
- Gilbane Inc.
- J.E. Dunn Construction Company
- Brasfield & Gorrie, L.L.C
- M. A. Mortenson Company
- AECOM
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“The
global Data Center Construction market presents significant opportunities
driven by increasing demand for cloud computing, edge computing, and digital
transformation across industries. Opportunities also arise from the need for
energy-efficient and sustainable data center solutions, especially in emerging
markets. Innovations in modular and prefabricated data center designs offer
flexibility and scalability. Additionally, advancements in AI and IoT
technologies are driving the construction of specialized data centers.
Governments' initiatives to attract investments in data infrastructure further
enhance growth prospects. Overall, the market's expansion is fueled by evolving
technology requirements and the imperative for resilient, high-capacity data handling
capabilities globally.Top of Form”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based
global management consulting firm.
“Data Center Construction Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Infrastructure Type (Electrical Infrastructure, Mechanical Infrastructure, Networking Infrastructure, Others), By Tier Level (Tier I, Tier II, Tier III, Tier IV), By Data Center Size (Small Data Centers, Medium Data Centers, Large Data Centers, Hyperscale Data Centers), By End-User Industry (IT & Telecommunications, BFSI, Healthcare, Government & Public Sector, Others), By Region and Competition, 2019-2029F”, has evaluated the future growth
potential of Global Data Center Construction Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Data Center Construction Market.
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