The global data center construction market share reached an estimated value of USD 66.23 billion in 2023, and is projected to grow at a compound annual growth rate (CAGR) of 7.2% during the forecast period of 2024-2032. By 2032, the market is expected to attain a value of USD 123.82 billion. The demand for data centers is increasing rapidly due to the growing reliance on cloud services, the rise in big data, and the surge in digitalization across various industries. As companies seek to expand their digital infrastructure, data center construction is becoming a critical industry.Market Drivers
Rising Demand for Cloud Services: The expansion of cloud computing services is a major factor driving the demand for data center construction. Companies are increasingly adopting cloud-based services, which has led to the need for more data storage and computing infrastructure. The demand for secure and scalable data centers has skyrocketed, particularly in sectors such as IT, telecommunications, healthcare, and e-commerce.
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Growth in Digital Transformation: As businesses across industries embrace digital transformation, the need for robust IT infrastructure has grown. The surge in data generation, driven by technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data analytics, is pushing companies to expand their data center capacities to manage vast amounts of data efficiently.
Increased Focus on Sustainability: Sustainability is becoming a key focus for data center construction projects. Companies are adopting energy-efficient designs, renewable energy sources, and advanced cooling technologies to minimize the environmental impact of data centers. This trend aligns with the growing push toward reducing carbon footprints and improving energy efficiency.
Edge Computing Growth: The rise of edge computing, which brings computing resources closer to the data source, is contributing to the demand for localized data centers. This trend is particularly prevalent in industries requiring low latency and high-performance computing, such as autonomous vehicles, smart cities, and industrial IoT.
Challenges
High Construction Costs: Building data centers requires significant capital investment, including infrastructure, cooling systems, and advanced technologies. This can be a barrier, especially for smaller firms or regions with limited resources.
Skilled Workforce Shortage: The construction of data centers requires specialized expertise in areas like electrical engineering, IT infrastructure, and cooling systems, leading to a shortage of skilled professionals in the market.
Key Players
AECOM
HITT Contracting Inc.
Jacobs Solutions Inc.
Hensel Phelps
IBM Corp.
PCL Constructors Inc.
The global data center construction market is set for robust growth as the demand for digital infrastructure continues to expand across industries. With increasing reliance on cloud computing, big data, and edge technologies, data center construction will remain critical for businesses seeking to enhance their digital capabilities. Key players in the market are focusing on sustainable designs and energy-efficient solutions to meet growing demand while addressing environmental concerns.