Worldwide Data Center Construction Market Report 2023-2028: Mega Data Center Projects are Facing Difficult-to-Get Approvals for the Use of Water to Cool Down Facilities

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Jun 29, 2023, 06:15 ET

DUBLIN, June 29, 2023 /PRNewswire/ -- The "Worldwide Data Center Construction Market - Focused Insights 2023-2028" report has been added to ResearchAndMarkets.com's offering.

Worldwide Data Center Construction Market is forecast to reach a value of $73.43 billion by 2028 from $50.34 billion, growing at a CAGR of 6.5%

The report covers the market by facility type, electrical infrastructure, mechanical infrastructure, and general construction. It profiles and examines leading companies and other prominent players operating in the market.

The data center market is witnessing growth in several new investments aided by the rapid expansion of cloud service providers, content providers, and on-premises migration to cloud/colocation facilities. The availability of tax incentives, free cooling, and renewable energy will likely attract more market investors. The increasing investment from colocation and hyperscale operators will likely continue during the forecast period.

The market considers a detailed scenario of the present data center construction market and its market dynamics for 2023-2028 worldwide. It covers a detailed overview of several market growth enablers, restraints, and trends.

KEY HIGHLIGHTS

Digitalization across businesses will continue to grow data center investments from colocation, cloud, internet, and telecommunication providers.
From a business perspective, the demand for data center space will grow among sectors, namely, BFSI, healthcare, technology, transportation, and heavy industries.
Many data center operators will equip their new data centers with efficient power solutions to reduce carbon emissions and the OPEX of their facilities.
Mega data center projects are facing difficult-to-get approvals for the use of water to cool down facilities. This prompts operators and vendors to collaborate and develop systems that can save up to 50% of water consumption in data centers.
The adoption of liquid immersion cooling will likely grow as organizations increasingly deploy artificial intelligence and machine learning workloads. Liquid immersion and direct-to-chip cooling are experiencing over 30% YOY market growth.
Submarine cable investments will improve in-land connectivity and reduce latency, boosting market growth worldwide.
The government's interest in promoting data center investments through the land for development, reducing electricity tariffs, and renewable energy procurement will drive the market during the forecast period.
The market is impacted due to an increase in inflation rates across the world followed by supply chain disruptions which is leading to delays in the opening of data centers.

SEGMENTAL ANALYSIS

In 2022, over 31.5% of the overall power capacity addition in the worldwide data center market was carried out by hyperscalers such as Meta (Facebook), Google, Microsoft, and Amazon Web Services
The adoption of lithium-ion batteries will significantly grow YoY during the forecast period. A continued price decline will continue to fuel battery adoption among data centers. The contribution from colocation providers will be high regarding lithium-ion UPS solutions.
<UNK> Increased carbon emission is one of the major challenges identified worldwide. To overcome the challenge, fuel cells are being installed to improve the efficiency of data centers. Fuel cells can be used to support significant loads for energy reliability, safety, stability, and reduced costs.
Several innovations in data centers have been implemented in recent years: for instance, switching from diesel to vegetable oil-based generators. Hydrotreated Vegetable Oil (HVO) is an oil that is synthesized from vegetable oils.
In data center projects, the investment in cooling systems is expected to be 15-20% of the overall cost, depending on the facility design and IT load. The selection of cooling systems is based on the location, i.e., whether the climatic conditions favor free cooling and have abundant water resources.
The importance of monitoring is growing with the adoption of intelligent real-time monitoring software with automation, and AI features that can predict maintenance requirements, component failures, and automatic switchovers for uninterrupted operations.
Supply chain constraints have increased the data center construction and procurement cost, averaging $2-$3 million per MW.

GEOGRAPHICAL ANALYSIS

The Americas region is among the world's most mature data center markets. The North American region led the market in terms of investment, white floor addition, and power capacity addition.
The presence of data protection laws such as the implementation of GDPR, availability of free cooling solutions, district heating systems, availability of renewable energy, and others are among the major factors that will attract data center operators to invest in the European region.
The Nordic region is among the preferred regions in the European region by hyperscalers owing to the availability of free cooling solutions throughout the year and the availability of renewable energy sources.
Middle East & Africa (MEA) region is among the emerging data center markets, aided by increased internet & social media penetration, digitalization initiatives, migration from on-premises to cloud, colocation, and managed services.
The APAC region is among the world's most dynamic and fastest-growing data center markets. The region has several developed & established markets along with several emerging locations.
The APAC region is the most exciting market and will provide ample opportunities for support infrastructure providers and contractors.

Key Attributes:

Report Attribute	Details
No. of Pages	122
Forecast Period	2022 - 2028
Estimated Market Value (USD) in 2022	$50.34 Billion
Forecasted Market Value (USD) by 2028	$73.43 Billion
Compound Annual Growth Rate	6.4 %
Regions Covered	Global

Support Infrastructure Vendors

ABB
Caterpillar
Cummins
Delta Electronics
Eaton
Legrand
Rolls-Royce
Schneider Electric
STULZ
Vertiv
3M
Airedale
Alfa Laval Asetek
Assa Abloy
Bloom Energy
Carrier
Condair
Cormant
Cyber Power Systems
Daikin Applied
Data Aire
Enlogic
FNT Software
Generac Power Systems
Green Revolution Cooling (GRC)
HITEC Power Protection
Honeywell
Johnson Controls
KOHLER
KyotoCooling
Mitsubishi Electric
Munters
Natron Energy
NetZoom
Nlyte Software
Panduit
Piller Power Systems
Rittal
Siemens
Trane
Tripp Lite
Yanmar (HIMOINSA)
ZincFive.

Data Center Contractors:

AECOM
Arup
Corgan
DPR Construction
Fortis Construction
Holder Construction
Jacobs
Mercury
Red Engineering
Rogers-O'Brien Construction
Syska Hennessy Group
Turner Construction
Turner & Townsend
AlfaTech
Atkins
Aurecon
Basler & Hofmann
BlueScope Construction
Brasfield & Gorrie
CallisonRTKL
Cap Ingelec
Clark Construction Group
Climatec
Clune Construction
COWI
DC PRO Engineering
Dornan
Edarat Group
EMCOR Group
EYP MCF
Gensler
Fluor Corporation
Gilbane Building Company
HDR
HITT Contracting
Hoffman Construction
ISG
JE Dunn Construction
Kirby Group Engineering
kW Engineering
kW Mission Critical Engineering
Laing O'Rourke
Linesight
M+W Group (Exyte)
McLaren Construction Group
Morrison Hershfield
Mortenson
PM Group
Quark
Rosendin
Royal HaskoningDHV
Salute Mission Critical
Sheehan Nagle Hartray Architects
Skanska
Southland Industries
Sturgeon Electric Company
Structure Tone
Sweco
The Mulhern Group
The Walsh Group
The Weitz Company and TRINITY Group Construction.

Data Center Operators:

21Vianet Group (VNET)
Amazon Web Services (AWS)
Apple
China Telecom
Colt Data Centre Services (Colt DCS)
Compass Datacenters
CyrusOne
Digital Realty
EdgeConneX (EQT Infrastructure)
Equinix
GDS Services
Global Switch
Google
Iron Mountain
Meta (Facebook)
Microsoft
NTT Global Data Centers
QTS Realty Trust
STACK Infrastructure
ST Telemedia Global Data Centres

Vantage Data Centers

3data
Africa Data Centres
AirTrunk
Aligned
American Tower
AQ Compute
Aruba
AtlasEdge
atNorth
AT TOKYO
BDx (Big Data Exchange)
Bulk Infrastructure
Bridge Data Centres
CDC Data Centres
Chayora
China Mobile
Chindata
CloudHQ
Cologix
COPT Data Center Solutions
CtrlS Datacenters
Cyxtera Technologies
Data4
DataBank
DC BLOX
Element Critical
ePLDT
eStruxture Data Centers
fifteenfortyseven Critical Systems Realty (1547)
Flexential
Green Mountain
H5 Data Centers
HostDime
KDDI (Telehouse)
Keppel Data Centres
LG Uplus
maincubes one
MainOne (Equinix)
Milicom (Tigo)
NEXTDC
ODATA
Orange Business Services
Prime Data Centers
Princeton Digital Group (PDG)
Proximity Data Centres
Raxio Group
Rostelecom Data Centers
Sabey Data Centers
Scala Data Centers
Sify Technologies
Skybox Datacenters
Stream Data Centers
SUNeVision (iAdvantage)
Switch
T5 Data Centers
Tenglong Holdings Group
Teraco (Digital Realty)
TierPoint
Turkcell
Urbacon Data Centre Solutions
Wingu
Yondr and Yotta Infrastructure (Hiranandani Group).
New Entrants
AdaniConneX AUBix
Cloudoon
ClusterPower
Corscale Data Centers
Damac Data Centres (EDGNEX)
Data Center First
DHAmericas
Edge Centres
Evolution Data Centres
Global Technical Realty
Hickory
iMCritical
Infinity
Kasi Cloud
MettaDC
Open Access Data Centres (OADC)
PowerHouse Data Centers
Pure Data Centres Group
Quantum Loophole
Quantum Switch Tamasuk (QST)
Stratus DC Management
YCO Cloud
YTL Data Center
ZeroPoint DC.

For more information about this report visit https://www.researchandmarkets.com/r/32jlm8

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