The Data Center Construction Market is Anticipated to Witness Robust Growth Owing to Increasing Adop

Author : Leena Shedmake | Published On : 07 Mar 2024

The data center construction market involves the design, construction, and installation of data centers across various industries. Data centers are a centralized facility used to house servers, telecommunications, and storage systems and equipment required for critical applications and data storage. The increasing adoption of cloud computing among enterprises to store and manage data has led to significant growth in the construction of new data centers as well as expansion of existing infrastructure. Key advantages of data centers include increased storage capacity, reduced operational costs, data security and backup, and catering to growing data storage needs cost-effectively.

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 2030.

Key Takeaways
Key players operating in the Data Center Construction are Regeneron Pharmaceuticals, Inc., Alimera Sciences, Oxurion NV., Abbvie Inc. and F. Hoffmann-La Roche Ltd are the major companies operating in the Global Diabetic Retinopathy Market. These key players are focusing on various strategies such as new product launches, mergers and acquisitions, and collaborations to strengthen their position in the market.

Key opportunities in the Data Center Construction market include the growing use of cross-connects and interconnection within data centers. Cross-connects facilitate faster data transfer and access to cloud services within and between data centers. Moreover, growing investment by hyperscale data center operators to support global expansion, especially in emerging markets of Asia Pacific and Middle East & Africa is anticipated to offer lucrative opportunities.

The rising digitalization trend and growth in data traffic have compelled key hyperscale data center operators such as Amazon Web Services, Microsoft, Google, and Alibaba to rapidly expand their existing data center infrastructure globally. Countries in Asia Pacific and Middle East & Africa are witnessing substantial investment by leading operators. This is expected to drive the demand for data center construction over the forecast period.

Market drivers and restrain
The rapid growth of internet usage, cloud computing adoption, and big data analytics are major market drivers for Data Center Construction Market Size . The number of internet users worldwide has surpassed 4 billion and is continuously rising. Moreover, over 90% of enterprises are currently using cloud computing services. This is generating massive volumes of data requiring storage and management via data centers.

However, factors such as high initial investment cost associated with data center construction and complex infrastructure planning pose a major challenge to market growth. The construction and development of hyperscale data centers require capital expenditure of hundreds of millions of dollars. Moreover, factors such as power requirements, cooling needs, and facility expansion add to overall project costs. This acts as a major restrain for small enterprises and emerging markets.

Segment Analysis
The data center construction market can be segmented based on vertical into IT & telecom, banking, financial services, and insurance (BFSI), government & defense, healthcare, retail, energy, manufacturing and others. The IT & telecom segment dominates the market as many large scale data centers are being setup to cater the increasing data storage needs of various organizations. BFSI segment follows the IT & telecom segment as financial institutions are allocating large investments in building their own private data centers or co-location centers for storage of critical financial data with high security protocols.

Global Analysis
Regionally, North America holds the largest share in the global data center construction market due to significant investments by developed countries including the US and Canada in building innovative digital infrastructure. Asia Pacific is expected to grow at the highest CAGR during the forecast period owing to rapid digitalization, smart city initiatives and increasing internet penetration in emerging economies like India and China. Countries in Europe and Latin America are also expanding their data center capacity to accommodate more data storage and handle large volumes of data traffic across multiple industry verticals.

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