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US Data Center Construction Market Size to Worth $3 Billion by 2023

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Ariztons recent market research report on the data center construction market in US provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market 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), by regions (South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US), and offers detailed competitive analysis.

The US data center construction market size is expected to generate revenues of approximately $3 billion by 2023 and is projected to grow at a CAGR of around 4% during the forecast period.

The increasing focus to enhance the operational efficiency of the facility and reduce power consumption and carbon emission will have a positive impact on the growth of the market in US. The development of modular and edge data centers will create lucrative opportunities for vendors in the US market.

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

Increasing Demand for Cloud Computing

The increasing adoption of cloud-based services especially, IaaS is propelling the growth of the US data center construction market size. Leading cloud hosting companies such as AWS, Microsoft, Google, IBM, and OVH are expanding the business in the region to meet the growing demand for cloud services in the US market.

The construction of mega facilities and other services such as colocation, managed services, and cloud-connectivity services will create lucrative opportunities for leading vendors in the US market.

Virginia, and Texas are the major cities contributing to the growth of the data center construction market in US. Providers from outside the US region are expanding the presence in the region due to the growing demand for cloud-based hosting services. It is estimated that over 3 million square feet of facilities build-outs with investment over $4 billion planned in the US by cloud service providers during 2017-2020.

Tax Incentives and Availability of Resources

Various state and local governments are offering investment, job creation, and sales taxes incentives to attract more data center operators in these regions. The increasing development activities in states with higher tax incentives is augmenting the growth of the US data center construction market size. The lucrative tax breaks offered by various states results in yielding million-dollar savings for hyperscale operators in the US market. Major locations that offer high tax incentives include Virginia, North Carolina, Alabama, Arizona, and Nebraska. These incentives serve as major criteria for site selection process, creates construction jobs, and benefit local sub-contracts. Other important factors that affect the selection of locations include renewable energy sources, reliable power, water for cooling, and fiber connectivity. Such benefits will help in transforming the US data center construction market.

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Increase in Adoption of Automation and Monitoring Solutions

The implementation of end-to-end monitoring and automation of the facilities will boost the growth of the  US data center construction market. These automation solutions help in reducing the cost of operations and power consumption in the data center facilities. The adoption of automation solutions assists in identifying maintenance requirement of infrastructure to avoid operational failures and avoid backup power failure during outages. The implementation of modern power infrastructure helps in controlling direct and remote monitoring of facilities. The growing requirement of DCIM solutions in existing and new data center facilities will create new lucrative opportunities for players in the US data center construction market.

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

The complete overview of the latest market research report on data center construction market in US 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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