Data Center Construction Market Growing At 10% CAGR

Posted by Heidi Schwartz

Construction crew with hard hats. The data center construction market covers multiple sectors like design, architecture, installation of electrical and mechanical systems, and incorporation of security mechanisms. Infrastructure certifications also play a vital role in the building of data center facilities. Internet of things (IoT), which requires a data center, is experiencing tremendous growth. Data centers are more suitable for storing and processing data generated by devices connected to the internet, and also to meet the demand for real-time computing. Therefore, the market is set to witness an increase in data centers that are reliable and scalable in nature.

The growing demand for cloud computing and big data analytics are also assumed to have an impact on this market, thereby driving the growth of the Global Data Center Construction market during the forecast period. Most modern data center facilities are seeking Power Usage Effectiveness (PUE) and Leadership in Energy and Environmental Design (LEED) certification before commencing construction of their facilities.

According to the Global Data Center Construction Market 2015-2019 report, the data center construction market in GCC countries is expected to grow significantly because of certain emerging trends that are expected to have a positive influence on the market during the forecast period. The green data center is a trend that is gaining increased attention and will propel the growth of the market during the forecast period. A green data center should comprise better PUE and should aid in reducing the environmental effects of a facility. A data center is currently designed by considering components that support the environment, as well as business operations in an efficient manner. LEED certification is used to determine whether a constructed facility satisfies the needs of a company. Software defined data center is a trend that has started to gain traction. Thus, the combination of drivers and trends is expected to propel the market growth during the forecast period.

The global data center construction market is facing some serious challenges. One of them is the lack of expertise in designing and constructing a data center. There are several considerations involved in constructing a data center and very particular expertise to implement each and every task is important. This knowledge fall under the categories of construction, design, engineering, project management and many more. Data center construction is highly dependent on the business requirement that combines both present and future needs. Experience in converting business needs to IT infrastructure development will play a critical role in the construction of these facilities. Inadequate analysis of the requirements of an organization will result in improper construction of data centers, which results in increased CAPEX and OPEX.

To calculate the data center construction market size, the report considers revenue generated from new data center construction and renovation of data centers as well as capital expenditure used for electrical, mechanical, and general construction. Level of service offered by a data center facility can be identified based on tier systems. Every constructed data center has a tier ranking of 1-4, which is categorized based on its physical infrastructure, cooling, power, promised uptime and redundancy levels. The data center tier system was introduced in 2005, which is developed and maintained by TIA.

Data Center Construction Market information by Geographical Segmentation provided in this research cover United States, Western Europe, SEA, China, Latin America, India, GCC and RoW (Rest of the World). Other Sections Include an Analysis on the Following:

  • Top three Drivers and its Impact on the Data Center Construction Market
  • Top three Challenges and its Impact on the Data Center Construction Market
  • Top three Trends and its Impact on the Data Center Construction Market
  • Five Forces Analysis of the Data Center Construction Market
  • SWOT Analysis of Key Vendors Data Center Construction Market