This market research report on the Americas data center market offers analysis on market size and forecast, market share, industry trends, growth drivers, and vendor analysis. It includes insights about segmentation by infrastructure (electrical, mechanical, and general construction), electrical infrastructure (UPS, rack PDU, generators, transfer switch and switchgear, and others), mechanical infrastructure (cooling, rack, and others), general construction (building design, installation services, building development, security, and DCIM), tier standards (tier I and tier II, tier III, and tier IV), and geography (North America and Latin America).
The increasing adoption of cloud, IoT, and big data analytics along with growing consumption of online video and audio content is driving the growth of the Americas data center market. The US contributes more than 85% of the total revenue in the data center market in Americas. The increasing number of colocation and managed service providers, including hyperscale operators in the US is likely to attribute to revenue growth during the forecast period. The leading operators are investing in significant capital annually in the construction of additional facilities as they can support processing of exabytes of data generated by both business and consumer users. Leading colocation and hyperscale operators are expected to invest heavily in the construction of new facilities throughout the forecast period.
The growing demand for these services across various industries such as BFSI and IT is expected to drive the Americas data center market. Vendors in the market are focusing on the installation of energy-efficient infrastructure that functions to reduce energy consumptions and carbon emissions. Hyperscale operators are investing heavily on renewable energy sources to power their facilities. The growing demand for edge facilities will also drive the construction of innovative additional centers in the Americas.. The data center market in America generated revenue of $8.49 billion in 2017, and is expected to grow at a CAGR close to 6% during the forecast period.
Content Delivery Network is expected to grow at a CAGR of around 20% in the US and over 30% in Canada and Latin America
The construction of new facilities in the Americas is primarily concentrated in major regions and cities that include South Eastern US, South Western US, Toronto, Montreal, and Sao Paulo. The growth of connected devices across business and consumer segments has helped to popularize the concept of edge computing in the region. The increasing demand for high bandwidth from rural areas and the growing demand for edge facilities will drive the market growth in the Americas. The market will witness a rapid deployment of additional facilities such as modular, containerized, and performance optimized data center (POD) for establishing edge centers, on-demand infrastructure requirements, and cost reduction. Prominent investors in facilities development include Equinix, Digital Realty and DuPont Fabros Technology, CyrusOnem, Facebook, Switch, Ascenty.
This market research report includes a detailed segmentation of the market by infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography.
Segmentation of Americas Data Center Market
Lithium-ion UPS, evaporative cooling, and intelligent PDUs are gaining popularity in the Americas data center market
In term of infrastructure, the data center market in Americas consists of three major sectors: electrical, mechanical, and general construction. The Americas data center market is witnessing innovations to improve energy efficiency and reduce power wastage. The adoption of energy-efficient infrastructure in N+N, 2N, 2N+1 redundant configuration will drive the data center power and cooling infrastructure market growth in Americas. The introduction of pre-fabricated modular rack systems and containment cooling design (hot/cold aisle) will boost the demand for modular data center construction in the Americas during the forecast period.
The electrical infrastructure segment of the data center market in Americas is further divided into UPS, rack PDU, generators, transfer switches and switchgear, and others. The rack power distribution unit (PDU) segment is the fastest growing sector in the electrical infrastructure segment, growing at a CAGR of 6.24% during the forecast period. The widely available PDUs across facilities in Americas are basic PDU, metered PDU, monitored PDU, switched PDU, and automatic transfer switch PDUs. Leading vendors are offering innovative solutions such as lithium-ion battery powered UPS systems, diesel rotary UPS systems (DRUPS), and metered and switched rack PDUs that enable complete control over power flow. The increase in the construction of modern centers of tier 3 and tier 4 standards, especially with IT load of more than 5 MW with redundant power infrastructure will grow the market during the forecast period.
Free-cooling systems are gaining popularity in various Northern US and Canadian cities
The Americas data center market by mechanical infrastructure consists of three major sectors: cooling systems, rack, and other mechanical infrastructure. The indirect evaporative free-cooling systems, chilled-water systems, and CRAH units will experience increased adoption during forecast period. The growing popularity of these evaporative cooling systems in Northern US and Canada is likely to drive the growth of the Americas data center market. Computer room air conditioners (CRAC), computer room air handlers (CRAH), chiller systems, cooling towers, dry coolers, and economizers are the different types of cooling systems available in the market. The Americas data center cooling market is expected to grow at a CAGR of about 6% during the forecast period.
DCIM software to include artificial intelligence (AI) and robot monitoring systems during the forecast period
The Americas data center market by general construction consists of five major sectors: building development, installation and commissioning services, building design, security, and DCIM. The development of sustainable mega facilities will drive the market for building development, design, and installation and commissioning services. The DCIM market is expected to grow through increased complexity of operating infrastructure and reduce the power consumption of facilities during the forecast period. Additionally, the integration of artificial intelligence (AI) and robotics in facilities will enable service providers to provide additional features such as predictive and perspective analysis. The Americas data center market by DCIM solutions is expected to reach around $250 million, growing at an exponential CAGR of about 15% during the forecast period.
The average cost of constructing tier III facility is about $750 and more than 65 tier III data centers were under construction in 2017
The tier standard segment in the data center market in Americas is divided into tier I and tier II, tier III, and tier IV. Currently, there are more than 10 tier IV centers under construction in the US. This tier standard has a minimum 2N+1 redundancy in power, cooling infrastructure with around 2.4 minutes of annual downtime, and availability of 99.995%. The presence of hyperscale developers such as Facebook, Apple, Microsoft, and Google are the highest contributors in the tier IV standard segment. The data center market in Americas by tier IV facilities is expected to generate revenue of about $3,910 million, growing at an impressive CAGR of 8.10% during the forecast period.
Segmentation by Geography
Leading data center construction locations include Virginia, Texas, Montreal, Toronto, and Brazil
The Americas data center market is further classified into two major geographical segments: North America and Latin America. The rise in demand for infrastructure as a service (IaaS) across Americas will boost the investment from colocation providers and hyperscale data center operators in North America and Latin America.
The use of modular infrastructure solutions is gaining popularity in the colocation data center market. Latin American telecommunication providers and government agencies are investing heavily to improve network connectivity between Latin America countries such as Brazil and the US. The Brazil, Chile, Colombia, and Mexico markets are experiencing steady growth in terms of investments from local and global colocation and cloud service providers (CSP). The data center market in Latin America is expected to grow at a CAGR of around 12% during the forecast period.
The key countries profiled in the report are:
The significant growth and increased investment for the construction of new facilities is generating business opportunities for various vendors in the American market. The three main participants in the Americas data center market are infrastructure providers, general construction contractors, and facilities operators. The increasing focus on reducing carbon emissions and decreasing power consumptions is encouraging players to construct additional facilities that operate energy efficient infrastructure and powered by renewable energy sources. Further, the rise in the number of colocation and cloud facilities with innovative designs will intensify the competition for infrastructure and construction contractors in the data center market in Americas. Colocation service providers will target tier II and tier III states in the US for edge facilities developments.
The major vendors in the market are:
Other prominent vendors include
Rittal, Caterpillar, Cummins, Cyber Power Systems, Delta Group, Geist Global, Generac Power Systems, Hewlett Packard Enterprise (HPE), Legrand, Nlyte Software, Tripp Lite, Clune Construction, Fluor Corp., FM Engineering, Fortis Construction, Gensler, Gilbane Building Co., HDR, Hensel Phelps, HITT Contracting, Hoffman Construction, JE Dunn Construction, Morrison Hershfield, Mortenson Construction, Structure Tone, Whiting-Turner Contracting Co., CoreSite Reality Corp., DataBank, EdgeConnex, Google, Microsoft, OVH, RagingWire Data Centers (NTT), T5 Data Centers, TierPoint, Colo-D, and Urbacon Data Center Solutions.
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