This market research report on US data center 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 electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), tier standards (Tier I & 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).
The increasing investments in the development of hyperscale and modular facilities will propel the growth of the US data center market. The growth in the number of construction projects that includes both greenfield and brownfield developments is driving the demand in the US market. The growing traction of containerized and POD architecture will transform the US market. The leading operators are focusing on selecting location free from natural disaster, reliable power and water resources for cooling, fiber connectivity enabling operation of network-neutral data centers, and tax incentives for constructing these centers in the US market. The key players are also designing facilities of Tier III and Tier IV standards with flexible designs that enable the provision of redundant infrastructure on-demand basis to the end-users. The increasing focus on designing facilities with minimum N+1 redundant power infrastructure and procuring 2N redundant systems will propel the development of the US market. The implementation of intelligent access control solutions, sensor-enabled video surveillance, and anti-climb perimeter fencing will improve the management and monitoring of these facilities in the US data center market.
The increasing number of construction facilities in places such as Virginia, Texas, California, New York, North Carolina, and Illinois will create lucrative opportunities for operators in the US market. The growing adoption of cloud-based services, big data analytics, and IoT solutions will lead to the development of additional facilities in the US data center market. The US data center market is anticipated to generate revenues of approximately $10 billion by 2023 and is projected to grow at a CAGR of around 5% during the forecast period.
US Data Center Market Size
The growing focus on increasing modular facilities deployment will attribute to the growth of the US data center market. The leading operators are offering modular solutions such as pre-fabricated facilities, racks, and containment systems to gain a larger market share and attract more end-users. This deployment method rapidly reduces the time needed to develop a new facility or create an additional data hall. Additionally, colocation providers are also leasing spaces from other providers to respond to the customer requirement in the US market rapidly. Such deployments will reduce the time taken to set up a facility and increase the operational productivity in these centers in the US. The deployment of containerized and performance optimized data center (POD) facilities reduces the involvement of construction contractors, stand-alone installation and commissioning services organizations, and design firms in the US data center market.
This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography.
Segmentation of Data Center Market in US
US Data Center Market – By Electrical Infrastructure
Lithium-ion UPS systems and fuel cells to gain traction in the US data center market during the forecast period
The US data center market by electrical infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems dominated the market share in 2017 and are projected to grow at a CAGR of approximately 5% during the forecast period. The different types of UPS systems available in the US market are standby UPS, line interactive UPS, and double conversion UPS systems. The introduction of flywheel energy that converts back to electrical energy to power the facilities that are more environment-friendly will transform the market in the US. The use of UPS in a rack-level UPS to provide backup power for each rack in the facility during an outage will increase the operational capacity of these facilities. The launch of lithium-ion UPS systems in modular data centers is expected to gain traction in the US data center market during the forecast period.
US Data Center Market – By Mechanical Infrastructure
Use of indirect evaporative coolers and water-side economizers to grow in the US data center market during the forecast period
The mechanical infrastructure in the US data center market is classified into cooling systems, rack, and other infrastructure. Cooling systems occupied the largest market share in 2017 and is estimated to grow at a CAGR of around 5% during the forecast period. The adoption of the 2N redundant configuration of cooling systems will propel the growth of this segment in the US market. The launch of evaporative coolers and economizers will revolutionize the cooling infrastructure in US market. The facilities in the South Eastern and the Western US prefer chilled water systems with the economizer mode to facilitate partial cooling of the facility using outside air. The use of effective solutions that reduce their CAPEX and OPEX, conserve space, and reduce power supply to the cooling units will create new opportunities for prominent infrastructure players in the US data center market.
US Data Center Market – By General Construction
Building development with renewable power sources to boost sales in the in the US data center market during the forecast period
The US data center market by general construction is divided into building development, installation and commissioning services, building design, physical security, and DCIM. Building development dominated the total market share in 2017 and is anticipated to grow at a CAGR of around 3% during the forecast period. Data center construction is classified as greenfield and brownfield development. The building development services include site selection, preparation, area construction, and concrete-based buildings with windows. The increasing focus on purchasing property for future development will continue to drive the general construction martket in US. The development projects that facilitate installation of on-site renewable power sources such as wind and solar energy to partially or completely power operations will transform the US data center market.
US Data Center Market – By Tier Standards
Tier III facilities with 2N redundant power infrastructure to trend in the in the US data center market during the forecast period
The tier standards in the US data center market is classified into Tier I & Tier II, Tier III, and Tier IV. The Tier III standards dominated the total market share in 2017 and are likely to grow at a CAGR of approximately 6% during the forecast period. The growing awareness in the procurement of renewable energy sources to power the facilities and the adoption of 2N redundant power infrastructure is propelling the growth of this segment in the US market. The use of dual power paths from switchgear and use of N+N infrastructure for generator systems is gaining traction in the US market during the forecast period. The implementation of intelligent rack PDUs for monitoring and management purposes and the penetration of lithium-ion batteries will transform the US market among tier III and tier IV facilities.
US Data Center Market – By Regions
Expansion projects by Facebook, Digital Realty, CyrusOne, and RangingWire in South Easter US worth millions of dollars
The US data center market by region is categorized into South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US. South Eastern US dominated the total market share in 2017 and is expected to grow at a CAGR of more than 5% during the forecast period. Virginia in South Eastern US is the largest market for facilities investments. The state has multi-billion-dollar development projects which are propelling the growth of this region in the US market. The wide availability of strong fiber connectivity, low-cost power, and massive tax incentives make Virginia an ideal location for facilities deployment in this region. The data center in Virginia market witnessed around 1.8 million square feet of facilities development with a total investment of around $1.5 billion open in 2017. The growing demand for cloud-based computing, analytics, and IoT solutions and establishment of hyperscale facilities in this region will propel the growth of the US market.
Key Vendor Analysis
The development of greenfield and brownfield construction products across regions is driving the growth of the US data center market. The higher adoption of highly efficient and modular infrastructure solutions is intensifying the competition level in the US market. The growing investments in the development of modern innovations and technologically advanced products that increase efficiency by 90% will help vendors sustain the competition in the US market. The rising adoption of lithium-ion batteries, fuel cell technology, natural gas generators, intelligent PDUs, and high voltage switchgear will create lucrative opportunities for vendors in the US market during the forecast period.
The major vendors in the market are:
Other prominent vendors include Altima Technologies, Asetek, Bloom Energy (Fuel Cells), Caterpillar, Cummins, Cyber Power Systems, Data Aire, Delta Group, Geist Global, Genrac Power Systems, Green Revolution Cooling, Hewlett Packard Enterprise (HPE), HighPower, Hitec Power Protection, Legrand, Nlyte Software, Nortek Humidity (Condair Group), Mitsubishi Electric Corporation, MTU On Site Energy (Rolls-Royce Power Systems AG), Rittal, Trane, Tripp Lite, Clune Construction, Fluor Corporation, 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., Apple, CloudHQ, CoreSite Reality Corp., DataBank, EdgeConnex, Google, Microsoft, OVH, RagingWire Data Centers (NTT), T5 Data Centers, and TierPoint.
Key market insights include
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