Global Data Center Construction Market Size, Share, and COVID-19 Impact Analysis, By Infrastructure (IT Infrastructure, PD and Cooling Infrastructure, and Miscellaneous Infrastructure), By Verticals (IT & Telecom, BFSI, Government & Defense, Healthcare, Energy, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033

Global Data Center Construction Market Size Forecasts to 2033

• The Global Data Center Construction Market Size was estimated at USD 215.54 Billion in 2023
• The Global Data Center Construction Market Size is Expected to Grow at a CAGR of around 11.76% from 2023 to 2033
• The Worldwide Data Center Construction Market Size is Expected to Reach USD 655.45 Billion by 2033
• Asia Pacific is expected to grow the fastest during the forecast period.

The Global Data Center Construction Market Size is expected to cross USD 655.45 Billion by 2033, growing at a CAGR of 11.76% from 2023 to 2033. Data centers are constructed using a variety of cutting-edge and creative technologies, including artificial intelligence, big data analytics, and the Internet of Things. This element is driving the expansion of the data center construction market.   

Market Overview

The planning, designing, and building of facilities that house computing infrastructure for data processing, networking, and storage is included in the data center construction market. The growing need for cloud computing, digital transformation, and business IT development is the main factor propelling the data center construction market. It incorporates mechanical, electrical, and general building elements to guarantee energy efficiency, scalability, and security. The primary goal of the data center construction market is to construct safe, scalable, and energy-efficient facilities to meet the expanding demands of digital infrastructure.   

The data center construction market promotes innovation, scalability, and sustainable growth in digital ecosystems by offering opportunities in cloud expansion, AI-driven infrastructure, modular designs, energy-efficient solutions, and worldwide connections. For instance, in April 2024, Google LLC announced plans to invest US$3 billion in building a new data center in Fort Wayne. The increasing need for data storage across businesses was shown by this increase in investment in data center construction.    

Governments are also encouraging digital infrastructure projects and providing incentives, which is driving the growth of the data center construction market. The expansion of the data center construction sector is also being driven by the growing investments made by hyperscale data center operators like Google Cloud, Microsoft Azure, and Amazon Web Vertical (AWS). The fast rise of cloud computing, the spread of big data, and the growing use of artificial intelligence (AI) and Internet of Things (IoT) devices are the primary factors driving the growth of the data center construction market.   

Report Coverage

This research report categorizes the data center construction market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the data center construction market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the data center construction market.   

Driving Factors

Demand for localized data processing and storage capabilities closer to end users is being driven by an increase in edge computing, which is being driven by the proliferation of IoT devices and the requirement for low-latency processing. Global investments to develop enterprises and quickly expanding sectors are driving the expansion of the data center construction market. The market for data center construction is being driven by the growing use of cloud and edge computing.   

Growing need for data storage and the quick development of cloud computing are two major factors driving the data center construction market's growth. The rapid expansion of the internet and the proliferation of connected devices are driving the data center construction market. The data center construction market is expanding and developing due to green data centers avoid discharging any harmful chemicals into the atmosphere.   

Restraining Factors

The growth of the data center construction market is being restricted by factors including worries about data security and privacy, as well as the high cost of building data centers. Restoring the compromised data takes time. This element is impeding the data center construction market.

Market Segmentation

The data center construction market share is classified into infrastructure and verticals.   

• The IT infrastructure segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period.  

Based on the infrastructure, the data center construction market is divided into IT infrastructure, PD and cooling infrastructure, and miscellaneous infrastructure. Among these, the IT infrastructure segment held the largest share in 2023 and is expected to grow at a significant CAGR during the forecast period. The growing need for high-performance computing and storage tier types is driving the expansion of the IT infrastructure industry. Cloud computing, big data analytics, and artificial intelligence (AI) applications are growing at a rapid pace, and to handle and manage large volumes of data effectively, enterprises need a strong IT infrastructure.

• The BFSI segment is anticipated to witness the fastest CAGR growth during the forecast period.

Based on the verticals, the data center construction market is divided into IT & telecom, BFSI, government & defense, healthcare, energy, and others. Among these, the BFSI segment is anticipated to witness the fastest CAGR growth during the forecast period. Rapid financial industry digitization and growing cloud-based tier type adoption are the main drivers of the BFSI segment. Data centers are being used by financial institutions more and more to store, handle, and analyze the massive volumes of data produced by transactions, online banking, mobile applications, and digital payment systems.

Regional Segment Analysis of the Data Center Construction Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the data center construction market over the predicted timeframe.

North America is anticipated to hold the largest share of the data center construction market over the predicted timeframe. The growth of data-intensive applications, the rising demand for cloud verticals, and the quick digital transformation of many sectors are what are driving North America regional market. The North American data center building market is expanding due to a variety of factors, including technical advancements and an increase in expenditures in technology industries. The growth of hyperscale data centers is being fueled by the region's supremacy in global cloud computing, which is headed by significant cloud service providers (CSPs) including Google Cloud, Microsoft Azure, and Amazon Web Vertical (AWS).

Asia Pacific is expected to grow at the fastest CAGR growth of the data center construction market during the forecast period. The rise of e-commerce, the quick uptake of digital technology, and the rising data consumption are driving the Asia-Pacific region. The need for massive data centers is being driven by the growth of online gaming, video streaming, and mobile internet usage. China, Japan, India, and Singapore are among the top donors, with significant investments from both local businesses and international cloud providers. 

Europe is predicted to hold a significant share of the data center construction market throughout the estimated period. The region's focus on data privacy laws and the rising need for local data storage are what propel regional market. Cloud service providers and businesses make significant investments in building data centers in strategic locations like Sweden, the Netherlands, and Ireland, which provide renewable energy and pleasant temperatures.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the data center construction market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.  

List of Key Companies

• IBM
• Fujitsu
• Gensler
• Dell Inc.
• Ascenty
• Acer Inc.
• Lenovo
• Equinix, Inc.
• Hitachi, Ltd.
• IPXON Networks
• Schneider Electric
• INSPUR Co., Ltd.
• Cisco Systems, Inc.
• Vertiv Group Corp.
• Others  

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In October 2024, High density computing and AI workloads at scale are powered by new integrated rack-scalable systems, servers, storage, and data management advancements that Dell Technologies brings to the Dell AI Factory.       
• In February 2024, Cisco and NVIDIA announced their intentions to provide data center AI infrastructure solutions that are simple to implement and maintain, allowing businesses to access the enormous processing power they require to thrive in the AI future.   

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the data center construction market based on the below-mentioned segments:   

Global Data Center Construction Market, By Infrastructure

• IT Infrastructure
• PD and Cooling Infrastructure
• Miscellaneous Infrastructure

Global Data Center Construction Market By Verticals

• IT & Telecom
• BFSI
• Government & Defense
• Healthcare
• Energy
• Others

Global Data Center Construction Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa