by The data center construction industry involves design, building and maintenance services for data centers. Data centers are facilities used to house computer systems and associated components, such as telecommunications and storage systems. They typically include redundant or backup power supplies, redundant data communications connections, environmental controls and security devices. The growth of large-scale cloud computing is driving increased needs for data storage and processing, fueling demand for new data center development. The need for robust data storage infrastructure to support cloud services, mobile computing and big data analytics is propelling the data center construction market forward. The Global Data Center Construction Market is estimated to be valued at US$ 72099.62 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the data center construction market are Regeneron Pharmaceuticals, Inc., Alimera Sciences, Oxurion NV., Abbvie Inc. and F. Hoffmann-La Roche Ltd. The increasing adoption of cloud-based services and internet of things technologies across various industries is propelling the demand for data centers for storage and management of large volumes of data. Various companies are actively partnering with data center construction vendors to develop new state-of-the-art infrastructure to support their cloud and connectivity needs. Global expansion of hyperscale data center operators into new markets is also driving increased investment in data center development around the world.
Market Key Trends
The increasing adoption of cloud computing globally is a major trend fueling data center construction activity. As more enterprises move their compute and storage needs to the cloud, it is driving the need for cloud providers to continue expanding their infrastructure footprints. Another key trend is the increasing focus on green data centers which are more energy efficient and eco-friendly in their operations. Data Center Construction Market Size installing more flexible, modular and scalable data center designs to adapt facilities for future growth. Adoption of emerging technologies like edge computing also presents new construction opportunities for data center real estate closer to population centers.
Porter’s Analysis
Threat of new entrants: It is moderately difficult for new companies to enter this market due to huge capital investment requirements.
Bargaining power of buyers: Buyers have moderate to low bargaining power in this market as there are many existing players.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to dependency of data center operators on components suppliers.
Threat of new substitutes: There is very low threat from substitutes due to lack of alternatives for data center facilities.
Competitive rivalry: The competition is high among existing Data Center Construction Market Size And Trends operators due to increasing demand for data storage and management.
Geographical Regions
North America accounts for around 40% share of the overall data center construction market value driven by robust demand from U.S. region.
Asia Pacific region is expected to witness fastest growth during forecast period driven by increasing demand from China, India and other developing Asian countries. These countries are witnessing exponential growth in data due to digitization.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
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