Press release
US Data Center Construction Market Analysis, Trends, Market Size & Forecast 2023
The US data center construction market size is expected to reach about $3 billion by 2023, growing at a CAGR of more than 4% during the forecast period.This market research report on US data center construction market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by type (building development, installation and commissioning services, building design, physical security, and DCIM), by tier standards (Tier 1 and Tier 2, Tier 3, and Tier 4), and by regions (South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US).
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US Data Center Construction Market - Overview
The significant change in the use of IT infrastructure and growing adoption of cloud-based solutions across industries is propelling the growth of the US data center construction market. The BFSI, healthcare, government, and heavy industries are highest revenues generators in the US market. The increase in mega facilities construction will provide higher revenue opportunity for construction contractors, sub-contractors, architectural and engineering firms, physical security solution provider and DCIM vendors in the US data center construction market. The installation of systems that can support density up to 200 kW is expected to gain traction in the market during the forecast period. The colocation and cloud service providers are largest contributors in the market in the US. The major markets for operations in the US include Virginia, Texas, California, New York, North Carolina, and Illinois. Moreover, growing investments made by colocation and cloud hosting service providers in the region will boost the revenues in the overall market.
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The various construction contractors, sub-contractors, architectural and engineering firms are focusing on building facilities that match the design and sustainability standards in the market. Certification from Uptime Institute and LEED on the design, development, and operational stability of the facility will help colocation providers attract new consumers and gain a larger market share.
US Data Center Construction Market - Dynamics
The increasing demand for the facilities at the edge is augmenting the development of the US data center construction market. The exponential growth of connected devices across business and consumer segments and demand high bandwidth internet across rural areas promote the development of edge facilities in the US market. The initiation of smart cities that require facilities close to customer locations will create lucrative opportunities for local and global vendors in the US market. Players such as vXchnge, EdgeConneX, and 365 Data Centers are some of the key edge-developers in the market. Furthermore, the rapid deployment of modular, containerized, performance optimized data center (POD) facilities will gain predominance in the US market over the next few years.
US Data Center Construction Market – By Type
Greenfield facilities developments spanning acres in land space will aid in the growth of the market during the forecast period
The US data center construction market by type is classified into building development, installation and commissioning services, building design, physical security, and DCIM. Building development dominated the majority of the market share in 2017 and is anticipated to grow at a CAGR of approximately 3% during the forecast period. Building development in the construction market is categorized into greenfield and brownfield development. The establishment of modern facilities that are built to withstand earthquakes and floods is boosting the growth of this segment in the US market. The installation of renewable energy sources such as wind and solar energy for partial or complete power operations in greenfield data center development will revolutionize the US data center construction market.
US Data Center Construction Market – By Tier Standards
LEED and the Uptime Institute certification to help operators attract new consumers in the US data center construction market
The tier standards segment in the US data center construction market is divided into Tier 1 and Tier 2, Tier 3, and Tier 4. Tier 3 standard dominated the market share in 2017 and is expected to grow at a CAGR of more than 5% during the forecast period. The growing requirement for sustainable designs to reduce power consumption and carbon emission of facilities is boosting the demand in this market segment in the US. The operators are focusing on obtaining certification from Uptime Institute, LEED and BICSI to attract new consumers and gain a larger market share. Vendors are also focusing on adding flexibility and reducing complexity in the installation and commissioning services process to aid operators to react quickly to the growing demand for their services in the US market.
US Data Center Construction Market – By Regions
South Eastern and South Western region will continue to add more revenue to the US data center construction market
The US data center construction market by region is segmented into South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US. South Eastern US region to dominate the market share in 2017 and is projected to grow at a CAGR of over 4% during the forecast period. Major investment projects by key vendors such as Facebook, Carolina, Digital Realty, CyrusOne and RangingWire will propel the expansion of the Virginia data center market in the region. The availability of cheap power, strong fiber connectivity, cooling systems, low taxes, and tax incentives are some of the factors propelling the growth of the market in US. The growing demand for edge facilities in secondary facilities market such as North Carolina, South Carolina, and Tennessee will also augment the growth of this region in the US market during the forecast period.
Key Vendor Analysis
The US data center construction market is highly competitive, and the leading vendors are focusing on launching innovative solutions to sustain the competition in the market. The new development projects will offer lucrative revenue opportunities for local construction contractors, sub-contracts, installation and commissioning service providers, and architectural firms in the US market. The DCIM software will help operators reduce power consumption and carbon emissions to attract new consumers and gain a larger market share in the US. The deployment of modular data centers and brownfield construction will help players expand in untapped regions in the US market.
The major vendors in the US data center construction market are:
Construction Contractors
Turner Construction
Holder Construction
DPR Construction
Jacobs Engineering Group
Corgan
AECOM
Syska Hennessy Group
Physical Security and DCIM Providers
ABB
Assa Abloy
Bosch Security Systems (Robert Bosch)
Honeywell International
Nlyte Software
Schneider Electric
Siemens
SimplexGrinnell (Tyco International)
Sunbird Software
Vertiv
Other prominent vendors include Clune Construction, Fluor Corp., FM Engineering, Fortis Construction, Gensler, Gilabne Building Co., HDR, Hensel Phelps, HITT Contracting, Hoffman Construction, JE Dunn Construction, Morrison Hershfield, Mortenson Construction, Structure Tone, Whiting-Turner Contracting Co., Allegion, Axis Communication, Cisco, Cormant, Digitus-Biometrics, Eaton, EMKA Group, FNT, Geist: Environet, Hangzhou Hikvision Digital Technology, Intel DCM, Modius, Optimum Path: Visual Data Center, Panduit, Rackwise, and Vigilent.
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