Data Center Construction Market To Reach $371.87 Billion By 2030

Data Center Construction Market Growth & Trends

The global data center construction market size is anticipated to reach USD 371.87 billion by 2030, growing at a CAGR of 7.6% from 2024 to 2030, according to a study conducted by Grand View Research, Inc. The market growth is fueled by the increasing demand for data storage and processing capabilities and the increased use of big data analytics. Furthermore, the growing trend of cloud computing and virtualization and a rise in digital transformation are contributing to market growth. Other significant factors driving the market growth include rising investment in infrastructure projects, increasing government spending on information technology, and greater demand from the enterprise sector. The adoption of a software-defined data center in the healthcare industry is also expected to drive market growth. There has been an increase in medical expenditure every year.

According to OECD Health at a Glance 2023, the U.S. Spends USD 12555 per capita on health, which is 16.6% of the GDP. Despite the developing stage, healthcare organizations are adopting modern IT infrastructure changes. Data management, networking, and server storage can be streamlined, unified, and improved by implementing a software-defined data center in the healthcare industry. The IT infrastructure industry in Asia Pacific is experiencing a significant expansion. The increase in networking equipment sales, such as switches and routers, handles this expansion. Businesses like Huawei Technologies Co. Ltd., Dell, and HP Enterprises have all contributed significantly to the expansion of the market in the area. Introducing new products by these businesses in the servers and networking sectors has helped the IT infrastructure market expand across Asia Pacific.

In addition, the region is experiencing significant IT infrastructure investments from various organizations. The National Investment and Infrastructure Fund Ltd. (NIIF) announced a significant investment of USD 200 million in iBUS Network and Digital Solutions, India's digital infrastructure solutions provider. The investment aims to expand the company's digital infrastructure in the country, which is expected to improve connectivity and support the growth of India's digital economy. The growing construction of hyper-scale data centers worldwide to store large amounts of data creates a profitable opportunity for participants in the industry. Hyper-scale data centers are utilized in various industries to enhance networking infrastructure, memory, computing power, and storage resources.

The physical distribution and infrastructure systems supporting the data centers for optimizing cooling efficiency and the capacity to scale computing workloads efficiently are among the elements of hyper-scale data centers. The network infrastructure ecosystem is benefitting from government initiatives aimed at reducing barriers to cross-border operations. As a result, key players like AT&T Intellectual Property, Huawei Technologies Co. Ltd, and Sky Telecom Inc., among others, have been aggressively investing in rising economies in Latin America, the Middle East, and other regions to expand their business. These market players are securing contracts and tapping into new markets to increase their presence with technological advancements and product innovations.

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Data Center Construction Market Report Highlights

• The IT infrastructure segment is expected to register a CAGR of 7.5% from 2024 to 2030 as a result of the increasing demand for high-performance computing servers, storage capacity, and sophisticated networking infrastructure

• The tier 4 segment is expected to register a CAGR of 10.2% from 2024 to 2030 as it implements the most stringent security protocols, including multi-layered physical barriers, biometric access control, and advanced surveillance systems

• The BFSI vertical is expected to register a CAGR of 7.9% from 2024 to 2030 as data centers offer advanced security features, including physical security solutions, access control protocols, and advanced firewalls, safeguarding critical financial data against unauthorized access and cyberattacks

• The Asia Pacific regional market is expected to witness high growth over the forecast period in line with the rapid development of IT and communication infrastructure and continued rollout of 5G networks

• Key players focus on product innovation and the introduction of new technologies to their portfolio. For instance, in January 2024, STACK Infrastructure, a developer and operator of data centers, expanded its AI-ready data center capabilities to support machine learning and related high-density workloads

• In addition, industry players pursue other strategic activities, such as geographical expansion, acquisitions, mergers, and collaborations. For instance, in February 2024, Edged Energy, a subsidiary focusing on carbon-neutral data center development, launched four data centers totaling more than 300 MW of capacity in the U.S.

Data Center Construction Market Segmentation

Grand View Research has segmented the global data center construction market based on infrastructure, tier type, vertical, and region:

Data Center Construction Infrastructure Outlook (Market Value, USD Billion, 2018 - 2030)

• IT Infrastructure

  • Networking Equipment

  • Server

  • Storage

• PD & Cooling Infrastructure

  • Power Distribution

  • Cooling

• Miscellaneous Infrastructure

Data Center Construction Tier Type Outlook (Market Value, USD Billion, 2018 - 2030)

• Tier 1

• Tier 2

• Tier 3

• Tier 4

Data Center Construction Vertical Outlook (Market Value, USD Billion, 2018 - 2030)

• IT & Telecom

• BFSI

• Government & Defense

• Healthcare

• Energy

• Others

Data Center Construction Regional Outlook (Market Value, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • India

  • China

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa (MEA)

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players of Data Center Construction Market

• Acer Inc.

• Cisco Systems, Inc.

• Dell Inc.

• Fujitsu

• Hewlett Packard Enterprise Development LP

• Huawei Technologies Co., Ltd.

• IBM

• Lenovo

• Oracle

• INSPUR Co., Ltd.

• Ascenty

• ABB

• Hitachi, Ltd.

• Equinix, Inc.

• Gensler

• Schneider Electric

• HostDime Global Corp.

• IPXON Networks

• KIO

• Vertiv Group Corp.