NEW YORK, Jan. 17, 2025 /PRNewswire/ — The global data center general construction market size is estimated to grow by USD 19.95 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of 10.39% during the forecast period.
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| Report Attribute | Details |
| Base Year | 2023 |
| Forecast period | 2024-2028 |
| Historic Data for | 2018 – 2022 |
| Segments Covered | End-user (BFSI, Government, Manufacturing, Media and entertainment, and Others), Type (Base building shell construction and Architecture planning and designing), Geography (North America, Europe, APAC, South America, and Middle East and Africa), Vertical (), and Tier Type () |
| Key Companies Covered | Acer Inc., Cisco Systems, Inc., Dell Inc., Fujitsu, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IBM, Lenovo, Oracle, and INSPUR Co., Ltd. These firms are instrumental in providing hardware and infrastructure for data centers. Additionally, companies like Ascenty, ABB, Hitachi, Ltd., and Equinix, Inc. play a critical role in data center operations, while firms such as Gensler, Schneider Electric, and HostDime Global Corp. contribute to design and management services. IPXON Networks, KIO, and Vertiv Group |
| Regions Covered | North America, Europe, APAC, South America, and Middle East and Africa |
Region Outlook
- North America
- Europe
- Asia
- Rest of World
1. North America – North America is estimated to contribute 31%. To the growth of the global market. The Data Center General Construction Market report forecasts market growth by revenue at global, regional & country levels from 2017 to 2027.
The North American data center general construction market is set to experience continuous expansion throughout the forecast period. This growth is attributed to the increasing consumer and enterprise data traffic, fueled by the proliferation of Internet of Things (IoT) devices, expanding adoption of autonomous technologies among businesses, growing investments in artificial intelligence (AI), and escalating investments in autonomous vehicles. The United States and Canada are the leading hubs for data center construction in North America. Toronto, Canada, is a prominent location due to its superior fiber connectivity, favorable climate, economical electricity tariffs, business-friendly tax environment, and minimal risk of natural disasters.
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Segmentation Overview
- End-user
- 1.1 BFSI
- 1.2 Government
- 1.3 Manufacturing
- 1.4 Media and entertainment
- 1.5 Others
- Type
- 2.1 Base building shell construction
- 2.2 Architecture planning and designing
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and Africa
- Country
US, Canada, China, UK, and Germany - Vertical
- Tier Type
1.1 Fastest growing segment:
The digital transformation of various industries, particularly in the BFSI sector, is driving the need for data center infrastructure. With an increase in digital transactions and new users, financial organizations require data centers to efficiently store and manage their data. Compliance with regulatory requirements, such as the EU’s General Data Protection Regulation (GDPR), is crucial for financial institutions. Breaches of these guidelines can result in significant fines. For instance, Morgan Stanley paid a USD60 million fine in October 2020 for data breaches. To ensure data security and adherence to regulations, financial services firms are turning to data center colocation and managed hosting services. The growing importance of securely storing large volumes of financial data, by governments, is expected to fuel the demand for data center infrastructure in the BFSI segment during the forecast period.
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Research Analysis
The Data Center General Construction Market is experiencing significant growth due to the increasing demand for Information Technology (IT) services and the explosion of data generated by Big Data Analytics, Artificial Intelligence (AI), IoT Devices, and Data Exchange. Data Centers are essential infrastructure for storing, processing, and managing the vast amounts of data flowing between various IT systems and end-users. Data Center Architecture is a critical factor in computing economics, as it impacts data consumption, cooling requirements, and overall operational efficiency. Hyperscale facilities, public cloud providers, multi-tenant facilities, and colocation services are driving the market’s growth, with IT equipment, cooling equipment, and miscellaneous expenses being significant cost components. Temperature and humidity levels are crucial factors in Data Center design, as they impact the performance and reliability of servers and other IT equipment. Security infrastructure costs and property costs are also significant expenses in Data Center construction. Edge computing is an emerging trend that aims to bring data processing closer to the source, reducing latency and improving overall performance. AI and IT equipment are key components of Edge computing, and cooling requirements may differ from traditional Data Centers due to their decentralized nature.
Market Overview
The Data Center General Construction Market is experiencing significant growth due to the increasing demand for IT infrastructure in various sectors, including Information Technology, Healthcare, Automation, Banking, and Telecommunications. Big Data Analytics, Artificial Intelligence, IoT Devices, and Cloud Computing are driving the need for more Data Centers, Data Exchange, and Data Storage. Data Flow requires advanced Data Center Architecture, Computing Economics, IP-Based Networking, and Cooling Solutions to ensure optimal performance. Hyperscale facilities, Public cloud providers, and Multi-tenant facilities are leading the market, with Colocation services and Servers being essential components. Cooling equipment, Power distribution, and Temperature & Humidity levels are crucial factors in Data Center Design. Miscellaneous expenses, including Security infrastructure costs and Property costs, are also significant considerations. The Tier 3 segment, with its redundancy and high-performance computing capabilities, is a popular choice for businesses requiring large Storage capacity and balanced workload. Media providers, Power backup, Cooling efficiency, Airflow optimization, and Balanced workload are essential for Colocation service providers and Telecommunications service providers. Social networking giants and E-commerce companies are significant consumers of Data Center resources.
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Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio