Product Code: 48897
The data center construction market was valued at USD 20.11 billion in 2019, and is expected to reach a value of USD 32.50 billion by 2025, registering a CAGR of 8.34% over the forecast period of 2020-2025. The development of advanced technologies, such as cloud-based services, internet of things, software-defined data centers, and disaster recovery has fueled the demand for the construction of data centers globally.
- By the end of 2018, 550 MW data centers were under construction across Europe, North America, Middle East, and APAC, with the North American markets accounting for over 44% of the total.
- Even today, the state and local municipalities of North America are competing to construct more data centers to their markets. For instance, Texas passed tax incentive legislation that provides a 100% exemption of sales taxes on business personal property necessary for data center operation over 10 to 15 years for large data center users.
- The regulations and mandates by the government to reduce energy consumption have led many large companies to shift their data centers from the remote locations to the urban area.
- For instance, the new prototype named "The Spark", moved data centers from remote locales to the middle of cities, allowing them to provide nearby buildings with energy. Solar panels on the surrounding houses provide the data center with energy. This concept has the capacity to supply the energy to 18,000 people as well as the power consumption of the data center can reduce upto 40%.
Scope of the Report
The data center constructions focus on designing and building a data center by considering capacity, disaster tolerance, and efficient design. Depending upon the quality and reliability of the data center, the scope of the report is limited to Tier 1, Tier 2, Tier 3, Tier 4, which is being used in small, medium and large scale enterprise.
Key Market Trends
Growing Adoption of Hyperscale Data Centers is Driving the Market Growth
- Hyperscale data center is broadly used in different sectors to increase computing ability, memory, networking infrastructure, or storage resources. The different features of a hyperscale data center include the physical infrastructure and distribution systems that support data centers, maximizing cooling efficiency, the ability to scale computing tasks in a quicker and faster way.
- Many cloud-based companies such as Google and Facebook are investing in supercomputers to accommodate their hyperscale needs.
- For instance, Facebook is expecting the construction of its fifth hyperscale facility, a H-shaped Building with 2.5 million sq. ft area by mid 2020.
- Furthermore, in February 2019, India's leading data center player, CtrlS, invested INR 2000 crore in setting up hyperscale infrastructure which is claimed to be the world's largest Hyperscale Tier-4 data center facility.
- Besides, in Thailand, ST Telemedia Global Data Centres (STT GDC) announced the construction of their hyperscale data center facility which will consist of two seven-story buildings within a data center campus where each building will support an IT load of 20MW, with construction taking place over two phases. This increased contruction of hyperscale data centers is expected to significantly drive the market growth.
North America to Hold a Major Share
- Over the years, the United States has been identified to be one of the fore-runners in the adoption of new technologies. With the rise in big data analytics, companies in that region, to avoid falling short on traditional storage, have been identified to deploy the construction of new data centers and colocation centers to run business analytics.
- The growing investment in the metro infrastructure in North America has provided optimal opportunity for the data center construction. For instance, CyrusOne has built 340,000 square feet mega-data center in Dallas metro in three phases with 100MW of capacity.
- Furthermore, the service industry in the United States has been growing at a robust rate, which in turn is leading to the generation of vast volumes of data. Organizations are increasingly adopting data centers to store and process the acquired data.
- In 2018, Kolos data center constructed the largest data center in the world in Ballangen, Norway with 600,000-square meter, 1,000 MW of computing power. The data center to scale up to two GW of consumable renewable power, which is more than any other data center location in the world.
The data center construction market consists of several major players. With technological advancement and product innovation, many companies are increasing their market presence by securing new contracts and by tapping new markets.
- March 2019 - DataGryd selected Clune Construction to build its 1MW MegaSuite 6 in New York where the five data halls on the 6th floor, MegaSuite 6 will feature 1,000kW of utility power and will be connected to over 300 carriers, network providers
- September 2018 - Fortis Construction opened a new data center office at Singapore which will provide general construction services to Facebook. This will be the first data centre of Facebook in Asia.
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Table of Contents
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Growing Demand for Cloud Applications
- 4.3.2 Rising Adoption of Hyperscale Data Centers
- 4.4 Market Restraints
- 4.4.1 Lack of Necessary Resources
- 4.5 Value Chain / Supply Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 TECHNOLOGY SNAPSHOT
6 MARKET SEGMENTATION
- 6.1 By Tier Type
- 6.1.1 Tier 1
- 6.1.2 Tier 2
- 6.1.3 Tier 3
- 6.1.4 Tier 4
- 6.2 By Size of the Enterprise
- 6.2.1 Small and Medium-scale Enterprise
- 6.2.2 Large-scale Enterprise
- 6.3 By End User
- 6.3.1 Banking, Financial Services, and Insurance
- 6.3.2 IT & Telecommunications
- 6.3.3 Government & Defense
- 6.3.4 Healthcare
- 6.3.5 Retail
- 6.3.6 Power & Energy
- 6.3.7 Manufacturing
- 6.3.8 Other End Users
- 6.4 Geography
- 6.4.1 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 6.4.2 Europe
- 18.104.22.168 United Kingdom
- 22.214.171.124 Germany
- 126.96.36.199 France
- 188.8.131.52 Rest of Europe
- 6.4.3 Asia-Pacific
- 184.108.40.206 China
- 220.127.116.11 India
- 18.104.22.168 Japan
- 22.214.171.124 Rest of Asia-Pacific
- 6.4.4 Latin America
- 126.96.36.199 Brazil
- 188.8.131.52 Mexico
- 6.4.5 Middle East & Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 IBM Corporation
- 7.1.2 SAS Institute Inc.
- 7.1.3 Turner Construction Co.
- 7.1.4 DPR Construction, Inc
- 7.1.5 Fortis Construction
- 7.1.6 Hensel Phelps Construction Co., Inc.
- 7.1.7 HITT Contracting Inc.
- 7.1.8 JE Dunn Construction Group, Inc.
- 7.1.9 M. A. Mortenson Company, Inc.
- 7.1.10 AECOM
- 7.1.11 Gilbane Building Company, Inc.
- 7.1.12 Clune Construction Company, L.P.
- 7.1.13 Nabholz Corporation
- 7.1.14 RagingWire Data Centers, Inc.
- 7.1.15 CyrusOne Inc.
- 7.1.16 Cyxtera Technologies, Inc.
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS