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Growing Popularity of global data center construction Market Is thriving with valued at USD 207.2 billion in 2019

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The global data center construction market size was valued at USD 207.2 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2020 to 2027. The construction process essentially refers to activities involved in the designing, planning, and construction of a facility. Data center costs comprise IT infrastructure, power distribution and cooling solutions, and several miscellaneous expenses. The continued increase in data consumption and the growing enterprise demand for cloud computing is expected to drive the growth of the market for data center construction.

The gradual resumption of the construction of various data center facilities, which was suspended temporarily as part of the lockdowns implemented in various parts of the world following the outbreak of the COVID-19 pandemic, and the commencement of new IT projects are expected to revive the market for data center construction in 2021. Meanwhile, the market is also expected to witness continuous investments in the construction of hyperscale facilities, which houses IT infrastructure, power equipment, and cooling equipment. Public cloud providers, such as Facebook; Google, Inc., and Amazon.com, are expected to continue investing in upgrading their existing infrastructure, thereby creating growth opportunities for the market.


The server segment dominated the market for data center construction and accounted for the largest revenue share of 52.2% in 2019. The segment is expected to register a healthy growth rate of 6.6% over the forecast period. The growing preference for adopting emerging technologies, such as AI and edge computing, which is driving the demand for high-computing servers, is expected to pave the way for the growth of the segment. Besides, the hyperscale data center providers look to leverage government initiatives worldwide, such as AI for Earth campaign, which is expected to favor servers’ market growth over the forecast period.

The cooling segment dominated the market for data center construction and accounted for the largest revenue share of 57.3% in 2019. The high market share can be attributed to the need for efficient cooling equipment to maintain optimum temperature and humidity levels across the data centers. IT infrastructure in data centers generates enormous amounts of heat as data centers are operational 24 hours a day and 365 days a year.

The Data Centre Construction Market is segmented on the basis of IT Infrastructure, Power Distribution & Cooling Infrastructure and region. On the basis of IT Infrastructure the market is segmented into Networking Equipment, Server, and Storage. On the basis of Power Distribution & Cooling Infrastructure the market is segmented into Power Distribution, Cooling.

North America dominated the market for data center construction and accounted for the largest revenue share of over 40.0% in 2019, followed by Asia Pacific. The high revenue share of North America can be attributed to the aggressive investments in hyperscale projects. The U.S. happens to be a developed economy and already boasts an established, sophisticated network infrastructure. It is also home to major cloud service providers, such as Amazon.com, Google, Inc., and Facebook. These companies are investing in the construction of mega facilities for additional data storage and processing capabilities, thereby opening opportunities for market growth.

Key companies are: IBM; Hewlett Packard Enterprise; Dell EMC; Lenovo; Oracle; Cisco; Fujitsu; Equinix, Inc.


  • IT Infrastructure
    • Networking Equipment
    • Server
    • Storage
  • Power Distribution & Cooling Infrastructure
    • Power Distribution
    • Cooling
  • Regional
    • North America
      • S.
      • Canada
    • Europe
      • K.
      • Germany
      • France
    • Asia Pacific
      • China
      • India
      • Japan
    • Latin America
      • Brazil
      • Mexico
    • Middle East & Africa
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Joana, one of the senior writers at Georgia Online, has been taking care of all the national coverage. He loves to write about the latest technology, and before joining Georgia Online, Joana was a part of the editorial board of a local magazine. joana@georgiaonline.ge
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