This market research report on US data center construction market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by type (building development, installation and commissioning services, building design, physical security, and DCIM), by tier standards (Tier I and Tier II, Tier III, and Tier IV), and by regions (South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US).
US Data Center Construction Market - Overview
The significant change in the use of IT infrastructure and growing adoption of cloud-based solutions across industries is propelling the growth of the US data center construction market. The BFSI, healthcare, government, and heavy industries are highest revenues generators in the US market. The increase in mega facilities construction will provide higher revenue opportunity for data center construction contractors, sub-contractors, architectural and engineering firms, physical security solution provider and DCIM vendors in the US data center construction market. The installation of systems that can support density up to 200 kW is expected to gain traction in the market during the forecast period. The colocation and cloud service providers are largest contributors in the market in the US. The major markets for operations in the US include Virginia, Texas, California, New York, North Carolina, and Illinois. Moreover, growing investments made by colocation and cloud hosting service providers in the region will boost the revenues in the overall market.
The various construction contractors, sub-contractors, architectural and engineering firms are focusing on building facilities that match the design and sustainability standards in the market. Certification from Uptime Institute and LEED on the design, development, and operational stability of the facility will help colocation providers attract new consumers and gain a larger market share. The US data center construction market is projected to generate revenues of approximately $3 billion by 2023 and is projected to grow at a CAGR of 4% during the forecast period.
US Data Center Construction Market - Dynamics
The increasing demand for the facilities at the edge is augmenting the development of the US data center construction market. The exponential growth of connected devices across business and consumer segments and demand high bandwidth internet across rural areas promote the development of edge facilities in the US market. The initiation of smart cities that require facilities close to customer locations will create lucrative opportunities for local and global vendors in the US market. Players such as vXchnge, EdgeConneX, and 365 Data Centers are some of the key edge-developers in the market. Furthermore, the rapid deployment of modular, containerized, performance optimized data center (POD) facilities will gain predominance in the US market over the next few years.
US Data Center Construction Market - Segmentation
This market research report includes a detailed segmentation of the market by type, tier standards, and regions.
Segmentation of US Data Center Construction Market
US Data Center Construction Market – By Type
Greenfield facilities developments spanning acres in land space will aid in the growth of the market during the forecast period
The US data center construction market by type is classified into building development, installation and commissioning services, building design, physical security, and DCIM. Building development dominated the majority of the market share in 2017 and is anticipated to grow at a CAGR of approximately 3% during the forecast period. Building development in the construction market is categorized into greenfield and brownfield development. The establishment of modern facilities that are built to withstand earthquakes and floods is boosting the growth of this segment in the US market. The installation of renewable energy sources such as wind and solar energy for partial or complete power operations in greenfield data center development will revolutionize the US data center construction market.
US Data Center Construction Market – By Tier Standards
LEED and the Uptime Institute certification to help operators attract new consumers in the US data center construction market
The tier standards segment in the US data center construction market is divided into Tier I and Tier II, Tier III, and Tier IV. Tier III standard dominated the market share in 2017 and is expected to grow at a CAGR of more than 5% during the forecast period. The growing requirement for sustainable designs to reduce power consumption and carbon emission of facilities is boosting the demand in this market segment in the US. The operators are focusing on obtaining certification from Uptime Institute, LEED and BICSI to attract new consumers and gain a larger market share. Vendors are also focusing on adding flexibility and reducing complexity in the installation and commissioning services process to aid operators to react quickly to the growing demand for their services in the US market.
US Data Center Construction Market – By Regions
South Eastern and South Western region will continue to add more revenue to the US data center construction market
The US data center construction market by region is segmented into South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US. South Eastern US region to dominate the market share in 2017 and is projected to grow at a CAGR of over 4% during the forecast period. Major investment projects by key vendors such as Facebook, Carolina, Digital Realty, CyrusOne and RangingWire will propel the expansion of the Virginia data center market in the region. The availability of cheap power, strong fiber connectivity, cooling systems, low taxes, and tax incentives are some of the factors propelling the growth of the market in US. The growing demand for edge facilities in secondary facilities market such as North Carolina, South Carolina, and Tennessee will also augment the growth of this region in the US market during the forecast period.
Key Vendor Analysis
The US data center construction market is highly competitive, and the leading vendors are focusing on launching innovative solutions to sustain the competition in the market. The new development projects will offer lucrative revenue opportunities for local construction contractors, sub-contracts, installation and commissioning service providers, and architectural firms in the US market. The DCIM software will help operators reduce power consumption and carbon emissions to attract new consumers and gain a larger market share in the US. The deployment of modular data centers and brownfield construction will help players expand in untapped regions in the US market.
The major vendors in the US data center construction market are:
- Construction Contractors
- Turner Construction
- Holder Construction
- DPR Construction
- Jacobs Engineering Group
- Syska Hennessy Group
- Physical Security and DCIM Providers
- Assa Abloy
- Bosch Security Systems (Robert Bosch)
- Honeywell International
- Nlyte Software
- Schneider Electric
- SimplexGrinnell (Tyco International)
- Sunbird Software
Other prominent vendors include Clune Construction, Fluor Corp., FM Engineering, Fortis Construction, Gensler, Gilabne Building Co., HDR, Hensel Phelps, HITT Contracting, Hoffman Construction, JE Dunn Construction, Morrison Hershfield, Mortenson Construction, Structure Tone, Whiting-Turner Contracting Co., Allegion, Axis Communication, Cisco, Cormant, Digitus-Biometrics, Eaton, EMKA Group, FNT, Geist: Environet, Hangzhou Hikvision Digital Technology, Intel DCM, Modius, Optimum Path: Visual Data Center, Panduit, Rackwise, and Vigilent.
Key market insights include
- The analysis of US data center construction market provides market size and growth rate for the forecast period 2018-2023.
- It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the US data center construction market.
- The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of market segments and the regional outlook for US data center construction market.
- The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
FILL IN YOUR DETAILS BELOW TO GET FREE SAMPLE OF THIS REPORT
Our reports have been used by over 10K customers, including:
CEO, Co-founder Audink Inc., DBA Audios
The report by Arizton was spot on. It not only gave us insight into the pro audio market, we used it to raise funds for our company. The data proved (to the VC we pitched to) that the market was large enough for our company to not only survive but also grow.
Senior Product Manager Interstates
I recently purchased a key Arizton Industry Outlook & Forecast in order to better understand growth for specific market segments and the macro environmental factors impacting this growth. I found Arizton’s coverage of the market dynamics and key takeaways to be insightful and valuable. The segmentation breakouts gave me the information I needed to guide strategic considerations.
Manager Market Analyst Power
Generation & Energy Rolls-Royce Power Systems AG
The provided information by Arizton really met my expectations. Especially the deep information about the datacenter ecosystem was very helpful. Furthermore, I absolutely appreciate the optimal service from the key account managers of Arizton. It was always a pleasure working with them.