Data Center Design and Construction Market Industry Developments And Growth Strategies Adopted By Players

The rapid growth in the amount of data consumed and generated by various organizations, businesses and individuals has led to rise in demand for data storage leading to the increase in number of data centers. Globally, data centers are emerging as computational hubs for end-users and enterprises. The number of data centers is increasing rapidly to cater to the demand for computing requirement and growing digital content. This growth in number of data centers is leading to the growth of data center design and construction market. Further, the demand for enterprise-wide digital content and growth of data centers is driving the demand for data center services across the globe.

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The key issue related to data center design and construction is energy consumption. It is important for the data center manufacturers to analyze factors such as energy use, power and cooling capacity, energy efficiency of components/equipment used, computational fluid dynamics and thermal zone mapping. Analysis of these factors enables designing of optimum solutions for energy consumption in a data center. Additionally, it is important to consider the carbon emission from the data center to meet the environment protection standards. On the basis of type of datacenters, the market is segmented as public data centers, scientific computing data centers, co-location data centers and private data centers. Public data centers are those which are accessible to public domain. Scientific computing data centers are used for scientific purposes by national laboratories. Co-location data centers are those where the equipment, bandwidth and space is available on rental basis. Private data centers are those which are owned and operated by the organizations using the servers.

On the basis of components and power supply data center design and construction market is classified under four broad categories namely, Tier 1, Tier 2, Tier 3 and Tier 4. Tier 1 data centers are those in which there are non-redundant components and offers single up-link and servers. Tier 2 data centers have redundant components providing higher capacity than Tier 1. Tier 3 data centers have features of Tier 1 and Tier 2 data centers along with multiple uplinks and dual power providing equipments. Tier 4 data centers have dual power supply for every component including heating, ventilating, and air conditioning (HVAC) systems and offer the highest capacity. Data center design and construction market is currently dominated by the Tier 4 data centers. However, the rising adoption of cloud based services by several small and medium sized business organizations will boost the growth of Tier 2 and Tier 3 data centers.

Geographically, North America dominated the market for data center design and construction. However, the expansion of large business organizations in Asia Pacific, Africa and Latin America and exponentially growth in data consumption is leading to the increasing demand for data centers in these geographies. Moreover, the availability of resources such as land and labor in these geographies is further boosting the growth of data center design and construction market. Additionally, the improving communication network infrastructure in countries such as India, China and Brazil offers potential growth opportunities for data center design and construction companies. However, the government regulation and variation in tax policies in different geographies are challenging factors for the growth of data center design and construction market.

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The market for data center design and construction is fragmented in nature and this market is witnessing number of new players. DPR Construction, Balfour Beatty Plc, Holder Construction, Group LLC, Turner Construction Company, Whiting-Turner Contracting Company, Mortenson Construction, Structure Tone, Skanska USA, Gibane, Carlson Design Construct, JE Dunn Construction and Holfmann Construction are some of the major players in global data center design and construction market. Stalco Construction, Clark Group, Jones Lang LaSalle, Walsh Group and Lend Lease are some of new players in data center design and construction market.

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