Data Center Construction Market in Americas - Industry Outlook and Forecast 2018-2023

INDUSTRY INSIGHTS

The rapid technological advancement such as adoption of cloud-based service, big data analytics, and IoT is augmenting the development of additional facilities and is driving the growth of the Americas data center construction market. The US contributes over 85% of the investments in Americas data center construction market. The economic development and technological innovations in Canada and Latin America will create lucrative opportunities for key players in the American market during the forecast period. The top markets for data center construction in the US include regions of Virginia, Texas, California, New York, North Carolina, and Illinois. BSFI and technology sectors are creating the highest demand for Americas data center construction market. Additionally,  data center colocation and hyperscale operators are expected to invest billions in the construction of new facilities over the next few years.

The increasing focus on reducing power consumption and carbon emission are encouraging operators to construct energy-efficient infrastructure and install innovative monitoring and management solutions to meet the growing demand in the market. Companies such as Equinix, Digital Realty, DuPont Fabros, Facebook, CyrusOne, and Switch are major revenue contributors in the American market.

Market Dynamics

The market is growing significantly across Americas. The US leads the market with increased construction of new facilities spanning thousands of square feet in area across acres of land. A multi-million project can result in millions of revenues for the market participants that include contractors, sub-contractors, architectural and engineering firms, physical security and DCIM providers. The site selection is one of the important criteria for developing facilities across the globe and it includes factors such as land stability, power availability, presence of free cooling options, tax incentives, carrier availability, cost factors, and data demand. The growing investment in mega projects will augment the growth of the data Americas data center construction market. Additionally, the location also plays a vital role in determining the availability of local workforce to operate in these new facilities. The growth of the Americas data center construction market will aid in creation of hundreds of local construction and operation jobs.

Americas Data Center Construction Market Segmentation

This market research report includes a detailed segmentation of the market by

1. Type
2. Tier standard
3. Geography

Insights By Type

Greenfield and brownfield developments will attribute to the revenues in the Americas data center construction market

The Americas data center construction market by type is segmented into building development, installation and commissioning services, design, physical security, and DCIM. Building development is the largest segment of the market generating revenues of more than $1.6 billion in 2023 and growing at a CAGR of more than 3% during the forecast period. The classification of building development in facilities construction includes greenfield and brownfield developments. The increasing focus on building modern facilities that can withstand earthquakes and floods is driving the growth of this market segment in the American data center market. The greenfield development projects are expected to grow during the forecast period due to the installation of renewable energy sources such as wind and solar power for facilities operations. The demand for modular data centers with renewable energy sources will augment the growth of the building development segment in the Americas data center construction market.

Insights By Tier Standard

Tier 3 centers contribution to overall revenue will be high, where the cost can vary from $600-$800.

The tier standard segment in the Americas data center construction market is classified into Tier I and Tier II, Tier III, and Tier IV. The Tier III segment will dominate the market generating revenues of more than $1.7 billion by 2023 and is expected to grow at a CAGR of close to 6% during the forecast period. More than 65 facilities under construction in the American market fall in the Tier III standard. The increasing number of greenfield development construction projects in Latin America is boosting the growth of the Tier III standard in the market. The growing development of the Tier III centers will increase the adoption of four-layer security and DCIM in the region. Moreover, the development of sustainable designs that reduce power consumption and carbon footprint will also drive the growth of this segment in the Americas data center construction market over the next few years.

Insights By Geography

Construction of mega centers in North Americas will boost the growth of Americas data center construction market

The Americas data center construction market by geography is divided into North America and Latin America. North America dominates the market generating revenues of over $3.2 billion by 2023 and is anticipated to grow at a CAGR of more than 4% during the forecast period. The rising demand for cloud computing, big data, and Internet of Things (IoT) services is driving the growth of the construction market in North America. The increasing number of modular and edge facilities in major cities across the US and Canada will attribute to the growth of the North American region in the American market. The growing adoption of 2N power infrastructure and free-cooling techniques will create new opportunities for leading vendors in the Americas data center construction market during the forecast period.

Insights by Vendors

The Americas data center construction market is highly competitive due to the presence of many players. The increased presence of data center construction contractors, architectural and engineering firms, physical security vendors and DCIM solutions providers will intensify the competitiveness in the market. The development of edge facilities will create lucrative opportunities for vendors in the American market during the forecast period. The growing construction of greenfield projects in Tier 2 market in Americas will add to the revenue for local construction contractors. Construction contractors are also partnering with infrastructure vendors to offer modular facilities solutions to create new revenue opportunities.

The Americas data center construction market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Market Segmentation by Type

• Building Development
• Installation and Commissioning Services
• Design
• Security
• DCIM

Market Segmentation by Tier Standard

• Tier I and Tier II
• Tier III
• Tier IV

Market Segmentation by Geography

• North America
  • US
  • Canada
•  Latin America
  • Brazil
  • Colombia
  • Chile