Data Center General Construction Market to Grow by USD 29.27 Billion (2025-2029), Rising Investment in Data Centers Boosts Market, Report on How AI Is Redefining Market Landscape - Technavio
NEW YORK, Feb. 7, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global data center general construction market size is estimated to grow by USD 29.27 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 13.1% during the forecast period. Increase in investment in data center is driving market growth, with a trend towards growing focus on construction of green data center. However, emergence of containerized and micro mobile data center poses a challenge. Key market players include ABB Ltd., AECOM, Arup Group Ltd., Brasfield and Gorrie LLC, CORGAN, Digital Realty Trust Inc., DPR Construction, HDR Inc., Jacobs Solutions Inc., Jones Engineering Holdings Ltd., Legrand SA, M. A. Mortenson Co., Page Southerland Page Inc., Schneider Electric SE, Skanska AB, STO Building Group, The Walsh Group, Turner Construction Co., and Vertiv Holdings Co..
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Data Center General Construction Market Scope | |
Report Coverage | Details |
Base year | 2024 |
Historic period | 2019 - 2023 |
Forecast period | 2025-2029 |
Growth momentum & CAGR | Accelerate at a CAGR of 13.1% |
Market growth 2025-2029 | USD 29268.6 million |
Market structure | Fragmented |
YoY growth 2022-2023 (%) | 11.3 |
Regional analysis | North America, Europe, APAC, South America, |
Performing market contribution | North America at 31% |
Key countries | US, Germany, Canada, China, UK, Japan, |
Key companies profiled | ABB Ltd., AECOM, Arup Group Ltd., Brasfield |
Market Driver
The Data Center General Construction market is experiencing significant growth due to the increasing demand for IT infrastructure in various sectors like Information Technology, Healthcare, Automation, and Banking. Trends such as Big Data Analytics, Artificial Intelligence, IoT Devices, and Cloud Computing are driving the need for more data centers. These facilities require IT infrastructure, power distribution, cooling solutions, and data flow management. Data Center Architecture includes Tier 3 segment with redundancy and high-performance computing, while Computing Economics favor cloud computing, IP-Based Networking, and colocation services. Hyperscale facilities, public cloud providers, and multi-tenant facilities are popular choices for data exchange and storage. Servers, IT equipment, cooling equipment, and temperature/humidity control are essential components. Miscellaneous expenses include security infrastructure costs, property costs, and power backup. Cooling efficiency, airflow optimization, and balanced workload are key considerations. Colocation service providers and telecommunications service providers cater to social networking giants and e-commerce companies. Power plants and data center design involve electrical and mechanical construction. Edge computing and AI are emerging trends.
Green data centers are energy-efficient structures designed to minimize environmental impact during construction and operation. These data centers utilize low-emission building materials for sustainable ecosystems, including efficient waste recycling. Advanced technologies, such as catalytic converters in backup generators and alternative energy sources like photovoltaics, heat pumps, and evaporative cooling, are employed. Building and certifying a green data center is an expensive initial investment. However, the long-term cost savings are realized once the center is operational, making it a worthwhile strategy for businesses prioritizing sustainability and cost efficiency.
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Market Challenges- The Data Center General Construction market is experiencing significant growth due to the increasing demand for IT infrastructure in various sectors like Information Technology, Healthcare, Automation, and Banking. The integration of Big Data Analytics, Artificial Intelligence, IoT Devices, and Data Exchange requires massive Data Storage and Data Flow, leading to the construction of large Data Centers. Data Center Architecture includes Computing Economics, Cloud Computing, IP-Based Networking, and Cooling Solutions. Challenges include managing Data Consumption, designing Hyperscale facilities, and collaborating with Public Cloud Providers, Colocation Services, and Media Providers. IT equipment and Cooling Equipment are essential components, requiring precise Temperature and Humidity levels. Miscellaneous expenses include Security Infrastructure costs, Property costs, and Redundancy for Tier 3 segments. High-performance Computing, Storage Capacity, and Tier 3 Standard are crucial factors. Power distribution, Cooling Efficiency, Airflow Optimization, and Balanced Workload are also essential considerations. Collaborating with Colocation Service Providers and Telecommunications Service Providers is key to success. Social networking giants and E-commerce companies are major contributors to this market.
- Containerized data centers, also known as modular data centers, offer businesses a flexible and efficient solution for their infrastructure needs. These portable data centers consist of essential components, such as servers, storage devices, and networking equipment, housed in standard shipping containers. The construction process for conventional data centers typically takes 18-24 months, whereas containerized data centers can be built in a few weeks. This quick turnaround time, coupled with lower capital expenditures, makes containerized data centers a significant trend in the global data center market. Organizations can commission these facilities to support their growing infrastructure requirements without the extensive time and financial commitment of traditional data center construction.
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Segment Overview
This data center general construction market report extensively covers market segmentation by
- End-user
- BFSI
- Government
- Manufacturing
- Media And Entertainment
- Others
- Type
- Base Building Shell Construction
- Architecture Planning And Designing
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
1.1 BFSI- The digital transformation of various sectors, particularly in the BFSI industry, is generating a substantial amount of data. Financial organizations require secure and efficient data center infrastructure to store this data and meet regulatory compliance. The BFSI sector's increasing reliance on digital transactions and customer-centricity is driving the demand for data center infrastructure. Regulatory bodies, such as the EU's GDPR, enforce strict guidelines for data protection and privacy. Breaching these regulations can result in hefty fines. Morgan Stanley, for instance, paid a USD60 million fine in October 2020 for data breaches. To avoid such penalties and ensure data security, financial institutions are investing in data center colocation and managed hosting services. The growing emphasis on secure data storage and regulatory compliance will fuel the growth of the global data center general construction market in the BFSI sector.
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Research AnalysisThe Data Center General Construction Market is experiencing significant growth due to the increasing demand for Information Technology (IT) services, particularly in sectors such as Big Data Analytics, Artificial Intelligence (AI), Internet of Things (IoT) Devices, and Data Exchange. Data Centers play a crucial role in storing, processing, and managing the massive amounts of data generated by these technologies. Data Center Architecture is evolving to accommodate Hyperscale facilities, Public cloud providers, Multi-tenant facilities, and Colocation services. Computing Economics and Data consumption are key considerations, with a shift towards more efficient and cost-effective solutions. IT equipment, including Servers, Cooling equipment, and Temperature and Humidity control systems, are essential components of Data Center construction. Miscellaneous expenses, such as Security infrastructure costs and Property costs, also contribute to the overall budget. Edge computing is emerging as an alternative to traditional Data Centers, bringing processing power closer to the source of data generation to reduce latency and improve efficiency. AI and Machine Learning are also being integrated into Data Center operations to optimize performance and reduce energy consumption.
Market Research Overview
The Data Center General Construction Market is experiencing significant growth due to the increasing demand for IT infrastructure in various sectors, including Information Technology, Healthcare, Automation, Banking, and Telecommunications. Big Data Analytics, Artificial Intelligence, IoT Devices, and Cloud Computing are driving the need for more data centers and advanced IT infrastructure. Data Centers are essential for managing and storing large amounts of data, facilitating data exchange, and ensuring data flow between different systems. Data Center Architecture includes Computing Economics, IP-Based Networking, and Cooling Solutions. Hyperscale facilities, Public cloud providers, Multi-tenant facilities, and Colocation services are popular options for businesses looking to reduce IT infrastructure costs. Data Center Design encompasses Electrical and Mechanical Construction, Power Distribution, and Cooling Equipment. Temperature and Humidity levels are critical factors in Data Center Design, along with Miscellaneous expenses such as Security Infrastructure costs, Property costs, and Redundancy. High-performance computing, Storage Capacity, and Tier 3 standard are essential features of modern Data Centers. Media providers, Power Plants, and Social networking giants are also investing heavily in Data Centers to meet their growing data needs. Edge computing and IT equipment are becoming increasingly important for optimizing data flow and reducing latency. Power backup, Cooling efficiency, Airflow optimization, Balanced workload, and Colocation service providers are essential components of modern Data Center Design.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
- BFSI
- Government
- Manufacturing
- Media And Entertainment
- Others
- Type
- Base Building Shell Construction
- Architecture Planning And Designing
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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