Data Center Construction Market in Americas to Worth Over $3.5 Billion by 2023


Arizton’s recent market research report on the data center construction market in Americas provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by type (building development, installation and commissioning services, design, security, and DCIM), by tier standard (Tier I and Tier II, Tier III, and Tier IV), and by geography (North America and Latin America).

The data center construction market in Americas is expected to reach revenues of more than $3.5 billion by 2023 and is projected to grow at a CAGR of close to 5% during the forecast period. The growing adoption of cloud-based service, big data analytics, and IoT across industries is contributing to the growth of the data center construction market in America. The development of modular and edge data centers across the American region will create lucrative opportunities for leading vendors in the market.

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The top 3 drivers and trends driving the growth of the data center construction market in America are discussed below:

Increased Demand for Cloud Computing

The increasing demand for IaaS and cloud computing in the US, Canada, and Latin America will drive the growth of the data center construction market in Americas. The development of colocation, managed services, and cloud-connectivity services will increase the demand for data center construction in the American market. Leading vendors are expanding their businesses to various cities in Latin America to meet the growing demand for construction services in the region. The construction of additional data centers in Virginia, US will create new opportunities for vendors in the data center market in Americas. The growing need for digitalization will fuel the construction of mega data centers with innovative green facility design, use of effective DCIM solutions, and increased physical security of the facility. Such developments will have a positive impact on the growth of the data center construction market in Americas.

Growing Customer Base for Colocation Providers and Managed Service Providers

The increasing demand for colocation, managed services, interconnection, and cloud connectivity solutions is attributing to the growth of the data center construction market. The growing need for colocation data centers from industries such as BFSI, Cloud Providers, Media and Entertainment, and Government will create profitable prospects for leading vendors in the American market. The colocation service providers are targeting to reduce CAPEX and OPEX by 50% by introducing energy efficient infrastructure, procurement of renewable power for their operations, installation of the rack with high power density, cloud connectivity, and tapping edge market opportunities.

The US is the largest revenue generator and have the highest number of operational colocation data centers in the American market.

Additionally, the increasing number of colocation service providers in both Latin America and Canada will contribute to the development of the data center construction market in America.

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Increase in Adoption of Automation and Monitoring Solutions

The rapid implementation of automation and monitoring solutions will transform the data center construction market in Americas. The adoption of these innovative solutions will help reduce the cooling and operating costs across data center operations in the region. The implementation of data center automation will identify the maintenance of infrastructure to avoid operational failure and reduce energy consumption and wastage energy in the facilities. Modern data centers are implementing controls for direct and remote monitoring of facilities thereby, propelling the growth of the data center construction market.

The leading vendors in the data center construction market in Americas are Turner Construction, Holder Construction, DPR Construction, Jacobs Engineering, Corgan, AECOM, Syska Hennessy Group, Aceco TI, ABB, Assa Abloy, Bosch Security Systems (Robert Bosch), Honeywell International, Nlyte Software, Schneider Electric, Siemens, SimplexGrinnell (Tyco International), Sunbird Softwa, and Vertiv.

The complete overview of the latest market research report on data center construction market in Americas by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

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