Revenues from Installation & Construction Data Centers to Exceed US$ 145,000 Mn by 2028-end
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A new Fact.MR study foresees the data center market to bring in nearly US$ 178,000 Mn revenues by 2028-end.
Reliance on the data center continues to grow, albeit more workloads are shifting to multi-tenant sites from on-premise facilities. The rise of hyperscale cloud providers, coupled with the hybrid cloud and edge data center trends will continue to influence growth of the data center market.
Data Center Market: Installation & Construction Activities Spearhead with Surging Activities of New Data Center Construction
Revenues from the installation & construction of data centers are poised to remain significantly larger than those from consulting & integration services, albeit the latter will present a comparatively higher growth rate through 2028. The construction of new data center space has demonstrated a five-year high.
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North American Data Centers, a firm that tracks the data center industry in North America, has stated data center projects of nearly 300 megawatts capacity are under construction in the region.
The surge in construction activities of new data centers is underpinned by a five-year high inventory of the industry and reflecting increased confidence in space leases by real estate developers across leading geographic markets.
Revenues from new data centers are likely to surpass US$ 104,000 Mn by 2028-end.
Although data center rebuilds currently account for a significantly lower share of the data center market, an impressive growth rate, even though slightly lower than new data center construction, has been foreseen for data center rebuilds in the upcoming years.
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The growth of the data center rebuilds is primarily driven by the hyperscale service providers, who are changing ways an IT space is sold and built. In the meantime, the data center providers are revamping their construction strategies for delivering capacity faster in larger chunks. The ongoing shift of the enterprise IT workloads, moving out of the on-premises data center to purpose-built facilities that are operated by colocation and cloud platforms providers, is the “trend behind the trend”.
Data Center Market: Impressive Momentum for Consulting & Integration of Data Centers
Data center consulting and integration services are likely to record an impressive rise in light of the rising complexity pertaining to the network design requirements. This coupled with the growing need for data centers across a wide range of industrial sectors will continue to augur well for the growth of the data center market in the near future. Revenues from data center consulting & integration are projected to exhibit an impressive 12.5% CAGR through 2028, which is greater than those from installation & construction.
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Data center end-user proliferation, in combination with the rise in customizability and versatility in relevant network designs, will continue to be a key growth determinant for data center the market. With data center transformation being one of the top agendas among enterprises, demand for consulting & integration services is high as enterprises seek expertise for aiding their business strategy, planning, and implementation.
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