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Data Center Construction Market - Global Outlook and Forecast 2018-2023

SKU : ARZ180404
  • Published on : May 2018

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This market research report on global 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 electrical construction (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical construction (cooling systems, rack, and other infrastructure), by tier standard (Tier I & II, Tier III, and Tier IV), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), and by geography (North America, Europe, APAC, Latin America, and MEA).

Data Center Construction Market – Overview

The proliferation of the Internet and extensive use of desktop systems, smartphones, social media, wearable devices, and connected devices is propelling the demand in the global data center construction market. Leading business organizations are embracing innovative technologies such as big data, cloud services, and IoT to stay competitive in the global market and boost revenues. Such changes are boosting internet traffic and propelling the need for better and modern facilities in the global market. Regions such as APAC and Middle East is expected to grow at the highest CAGR during the over the next few years in the global data center construction market. The construction of hyperscale data center by organizations such as Facebook, Google, Amazon Web Service, and Microsoft will augment the development of the global market. Additionally, colocation providers are also investing significantly in the construction of new facilities with area of over 200,000 square feet in the global market. The increasing focus on developing a digital economy by investing in submarine fiber cable and improving their rural and urban broadband connectivity is encouraging top operators to construct data center facilities in the global market. The market is witnessing a rise in greenfield, brownfield and modular facilities construction. The penetration of modular facilities is high in regions such as Latin America, Eastern Europe, Middle East, Africa, and parts of Southeast Asia.

Construction of new facilities of Tier III and Tier IV standards in countries such as Brazil, Sweden, Norway, Finland, Ireland, Denmark, Canada, India, Japan, and South Korea will create new avenues of prominent operators in the global market. The increasing investments towards innovations to enhance the operational efficiency of the facility, reduce power consumption, and decrease carbon emission will transform the global market by 2023. The global data center construction market is anticipated to generate revenues of around $45 billion by 2023, growing at a CAGR of more than 6% during the forecast period. The research report also offers market size in square ft area and power capacity in megawatts (MW) across geographies.

Global Data Center Construction Market by Revenue

 

Data Center Construction Market – Dynamics

The growing interest to operate facilities at a PUE of less than 1.50 is modernizing the design and development of the global data center construction market. The increasing need to reduce carbon footprint and promote sustainable development is encouraging services providers to invest in the procurement of clean, renewable energy sources to power new and existing facilities in the global market.The use of renewable energy will encourage operators to focus on the design of centers, redefine installation and commissioning processes, and increase physical security requirements in case of on-site power generation in the market. Leading companies are aligning their mission statements to meet the clean energy requirements and procure renewable energy sources in the global market. For instance, Microsoft has set the goal of powering 50% of its facilities operations through renewable energy by 2021.

Data Center Construction Market – Segmentation

This market research report includes a detailed segmentation of the market by electrical construction, mechanical construction, tier standards, general construction, and geography.

Segmentation of Data Center Construction Market

Global data center construction market segments and share

 

 

Data Center Construction Market – By Electrical Construction

Modern UPS systems with battery monitoring technologies to transform the global data center construction market

The global data center construction market by electrical infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems dominated the majority of the market size in 2018, growing at a CAGR of over 6% during the forecast period. The development of rack level UPS systems is propelling the growth of this market segment in the global market. The implementation of modern UPS systems with battery monitoring controls to predict the possibility of failure and maintenance needs will transform the global market. The adoption of lithium-ion UPS systems facilities operators in developed countries to reduce the OPEX through reduced maintenance cost will create new avenues for leading vendors in the market. The continuous innovations in UPS solutions and growing demand for modern solutions in emerging nations will attribute to the growth of this segment in the global market.

Data Center Construction Market – By Mechanical Construction

Adoption of free cooling systems will reduce energy costs in the global data center construction market

The mechanical construction segment in the global data center construction market is divided into cooling systems, data center rack, and other infrastructure. Cooling systems segment occupied the largest market share in 2017, growing at a CAGR of more than 5% during the forecast period. The extensive use of indirect evaporative cooler, air or water-side economizers, and free cooling chillers is driving the development of this market segment in the global market. The redundancy of data center cooling systems is N+1 or N+N configuration among tier III facilities in the global market. Major facilities in regions such as Southeast Asia, China, India, Australia, Middle East, Africa and Latin America prefer chilled water systems. The installation of partial air cooling systems  through  free cooling and dual water feeds solutions as part of on-site water treatment plants will transform the global market during the forecast period. The market is also witnessing increase in design and development of facilities that uses sea or lake water to cool the server heat.

Data Center Construction Market – By General Construction

Investments in mega data center development projects to trend in the global data center construction market during forecast period

The global data center construction market by general construction is classified into building development, installation and commissioning services, building design, physical security, and DCIM. Building development segment dominated the market size in 2017, growing at a CAGR of over 4% during the forecast period. The development of modern facilities that can withstand earthquakes and floods while providing access to incoming and outgoing network fibers will revolutionize the construction of facilities in the global market. The increasing number of brownfield development and modular facilities projects with the installation of on-site renewable power sources such as wind and solar energy to partially or completely power operations will continue to trend in the global data center construction market over the next few years.

Data Center Construction Market – By Tier Standards

Facilities of Tier III standards in emerging nations to boost growth in the global data center construction market

The tier standard segment in the global data center construction market is categorized into Tier I & II, Tier III, and Tier IV. Tier III standards occupied majority of the market size in 2017, growing at a CAGR of over 5% during the forecast period. The growing need for tier III certification from Uptime Institute to attract customers and increase occupancy rate to up 80% up front will boost the growth of this segment in the global market. The growing deployment of modular facilities in the developing countries will include minimum of N+1 redundancy in power and cooling capacity to avoid power fluctuation and outages issue thereby, driving the requirement for tier III standards in these regions. The development of efficient infrastructure will enable vendors to attract more consumers and boost revenues in the global data center construction market.

Data Center Construction Market – By Geography

Increasing Investments in Latin America, Middle East, and Africa will attribute to the growth of the global data center construction market

The global data center construction market by geography is segmented into North America, Europe, APAC, Latin America, and MEA. Latin America occupied a significant market size in 2017, growing at a CAGR of around 11% during the forecast period. The increasing investments from colocation service providers, telecommunication service providers and hyperscale developers are augmenting the demand in the  construction of data center in Latin America market. The growing construction of large and mega facilities with a power capacity of over 5MW will transform the market in the region over the next few years. Developing regions are fueling the demand for modular facilities projects in the global market. For instance, Flexenclosure entered the Latin America market in 2016 and is experience high interest from local service providers in building modular solutions thereby, creating new opportunities for leading vendors in the Latin American market.

Key Countries Profiled

  • US
  • Canada
  • Western Europe
  • Nordic Region
  • Eastern Europe
  • China
  • Hong Kong
  • Australia
  • Singapore

Key Vendor Analysis

The global data center construction market has a strong presence of prominent players in all three categories that include categories such as electrical infrastructure, mechanical infrastructure, and general construction. The leading vendors are focusing on developing innovative products to improve efficiency by 90% and reduce OPEX by 50% in the global market. The procurement of lithium-ion batteries, fuel cell technology, natural gas generators, intelligent PDUs, and high voltage switchgears will help companies attract a larger consumer base and gain a larger market share. The top operators are offering real-time monitoring and management solutions to sustain the competition in the global market. Business expansions in emerging nations will help leading players to generate higher revenues in the global data center construction market.

The major vendors in the market are:

  • By Infrastructure Providers
    • ABB
    • Eaton
    • Rittal
    • Schneider Electric
    • STULZ
    • Vertiv
    • Caterpillar
    • Cummins
  • By Construction Contractors
    • AECOM
    • DPR Construction
    • HDR Architecture
    • Holder Construction
    • Jacobs Engineering Group
    • Mercury Engineering
    • M +W Group
  • By Other Prominent Infrastructure Providers
    • Airedale Air Conditioning
    • Alfa Laval
    • Altima Technologies (NetZoom)
    • Bosch Security Systems (Robert Bosch)
    • Condair Group
    • Delta Group
    • GE
    • HPE
    • Huawei
    • Legrand
    • Nlyte Software
    • Mitsubishi Electric Corporation
    • MTU On Site Energy
    • Socomec Group
    • Trane (Ingersoll Rand)
  • By Other Prominent Construction Contractors
    • Arup Group
    • Cap Ingelec
    • Corgan
    • CSF Group
    • Fluor Corporation
    • Fortis Construction
    • Gensler
    • Gilbane Building Co.
    • Jones Engineering Group
    • KKR Investment Group
    • Morrison Hershfield
    • Mortenson Construction
    • Structure Tone
    • Syska Hennessy Group
    • Whiting-Turner Contracting

Key market insights include

  1. The analysis of global data center construction market provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the global datacenter construction market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of global datacenter construction market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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