North America Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 6.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Data Center Construction Market Analysis
The North American Data Center Construction Market is projected to register a CAGR of 6.2% over the next five years. The construction of data centers is a complex task involving planning location, electronics, and mechanical requirements. However, the growing demand for cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and big data drives the region's need for data center construction.
- North America dominates the global market for building data centers. A strong economy and cutting-edge network infrastructure drive the market's expansion. The United States dominates the regional market and has many significant cloud service providers, including Amazon.com, Google Inc., and Facebook. These businesses invest in building massive data centers and increased data storage and processing capabilities, which present enormous market prospects.
- Due to the increase in internet usage, there is a high penetration rate in the region, especially in the United States, by around 85%, which increases the amount of data generated. The United States has also been recognized as one of the forerunners in adopting new technologies. With the increasing adoption of Big Data analytics, the country contributes over 50% of the world's spending on Big Data to avoid falling short on traditional storage. It has begun the construction of new data and colocation centers to run business analytics activities.
- The increasing investments in metro infrastructure in North America have provided optimal opportunities for constructing data centers. For instance, CyrusOne intended to build a 340,000 square-foot, 100 MW-capable mega data center in three phases in the Dallas metro area. Furthermore, customers are constantly experiencing increased sophisticated user demands for network and connectivity solutions that deliver faster and more reliable data connections across data centers in the United States.
- Moreover, the impact of edge computing on data center construction is expected to be significant. Such disruption is fueled by the introduction of 5G, reducing dependence on the small and medium hyperscale data centers during the forecast.
- The impact of COVID-19 was positive on the market. According to a study by Devo Technology, a cloud-native and security analytics company, 81% of organizations pointed out that COVID-19 accelerated their cloud timelines and plans. Across these companies, there was a 200% jump in the organizations planning to move more than 75% of their apps/workloads to the cloud, with 86% placing cloud options in their decision process for new applications. More than 40% chose the cloud as their first option. The packages launched for digital infrastructure during the pandemic by the government triggered the need to increase the total capacity of data centers.
North America Data Center Construction Market Trends
United States of America to hold major market share
- The United States data center construction market is a rapidly growing industry driven by the increasing demand for data storage and processing capabilities. The growth of cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and other emerging technologies have led to an exponential increase in data generation, storage, and processing needs, which, in turn, has resulted in a surge in the construction of data centers in the United States.
- The country also has a constant stream of investments from the IT giants like Facebook, Google, Amazon, Apple, and Microsoft towards hyperscale data centers making the States a leading country in North America's data center market. According to Cloudscene, there are 2701 data centers in the United States, compared to 328 data centers in Canada and 153 in Mexico.
- In addition, the tax benefits and the incentives offered by the governmental authorities are among the factors driving investments in data center construction. Approximately 27 states in the United States leverage these factors to attract data center projects. In addition, the heavy tax breaks being implemented in the country indicate a government-front aim to construct new data centers or renovate the existing ones.
- The demand for Data Centers in the United States is majorly spread across metropolitan areas such as New York, Los Angeles, and Chicago, primarily due to large enterprises and cloud service providers.
- For Instance, in November 2022, At Elk Grove Village, Illinois, at 1600 East Higgins Road, Prime Data Centers, a company offering data center solutions, is experiencing significant expansion. The company broke ground on its USD 1 billion Chicago data center campus. In order to create the largest data center campus in the Greater Chicago area, Prime ORD is expected to provide more than 750,000 sq. feet and 175 megawatts of capacity when fully built out. The first three campus data centers planned ORD-01, are expected to be promoted as single-tenant, hyperscale data centers to large cloud providers, international enterprises on the internet colocation firms, and Fortune 500 companies.
Healthcare End User Vertical Holds Significant Market Share
- Data center construction in the healthcare sector is expected to witness substantial demand during the forecast period due to the growth in digital data owing to technological advances and government incentives to implement Electronic Health Records (EHR), the proliferation of IoT, and smart devices in the country's healthcare sector. In addition, the increased enforcement of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) security is further forcing healthcare organizations to upgrade data security and disaster recovery protocols or face high penalties.
- Moreover, with the introduction of the Electronic Medical Records (EMR) Mandate in the United States, healthcare organizations nationwide have adopted cloud-based healthcare solutions to store and protect patient records. Most hospitals and healthcare organizations use cloud storage for patients' healthcare data. Electronic health records are stored in the cloud and updated electronically by physicians, nurses, and other healthcare providers. Such factors augment the demand for data center construction, owning to the growth in digital data in the healthcare sector.
- The digitization of consumer healthcare records in the form of electronic medical records (EMR) has significantly contributed to massive data generation. The latest innovations in medical equipment and the modernization of legacy operating systems, such as the management of personnel and the improvement in the patient response systems, generate a multitude of data, further necessitating the need for secured data center construction initiatives in the country.
- Furthermore, the country's government continuously recognizes the role of digital health and technological innovation in healthcare as an integral part of successful healthcare infrastructure. The government is making significant strides to make the healthcare sector technologically advanced and continuously increasing its healthcare expenditure to support the healthcare sector. For instance, according to the data from CMS (Office of the Actuary), the forecasted U.S. national health expenditure was expected to reach USD 6751.4 billion in 2030 from USD 4297.1 billion in 2021.
North America Data Center Construction Industry Overview
North America's Data Center Construction Market is moderately fragmented, with the top five companies occupying most of the market share. The major players in this market are AECOM, DPR Construction Inc., Fortis Construction Inc., IBM Corporation, and Schneider Electric SE (sorted alphabetically).
In June 2023, EdgeCore Digital Infrastructure announced an agreement with Bandwidth Infrastructure group, providers of dark fibers, to connect Bandwidth IG's San Francisco Bay Area network to EdgeCore's Silicon Valley data center campus in Santa Clara with up to 5 points of connection for 72MW IT load capacity.
In January 2023, Metro Edge finalized agreements with Clune Construction and other construction companies to design and build the data center facility. The project is expected to have full entitlements within the next few months and break ground shortly after.
North America Data Center Construction Market Leaders
IBM Corporation
DPR Construction Inc.
AECOM
Schneider Electric SE
Fortis Construction Inc.
*Disclaimer: Major Players sorted in no particular order
North America Data Center Construction Market News
March 2022: Vantage Data Centers announced the investment of an additional CAD 900 million to scale its Canadian operations rapidly. These included the development of a third campus in Montreal and the expansion of two existing campuses in Montreal and Quebec City. These developments would bring the total number of Vantage campuses in the Province of Quebec to 4. Such projects are driving opportunities for the vendors in the market.
September 2022: Data center operators and industrial companies increasingly used unmanaged switches to connect edge devices for Industrial Internet of Things (IIoT) applications. These switches allow Ethernet devices to stream data reliably for aggregation and analysis. Antaira, an industrial networking and communication product manufacturer, released the LNP-0800G and LNP-0800G-24 unmanaged switch models with power over ethernet (PoE). These fanless switches, housed in rigid, IP30-rated DIN-rail metal cases, provide long-term reliability in harsh industrial settings, including extreme applications where temperatures range from -10°C to 65°C (LNP-0800G) or -40°C to 75°C (LNP-0800G) (LNP-0800G-24).
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Cloud Applications, AI, and Big Data
4.2.2 Growing Adoption of Hyperscale Data Centers in Large Enterprises
4.2.3 Advent Green Data Center
4.3 Market Restraints
4.3.1 High CaPex, OpEx & TCO for building Data Center
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
5.1 Planned/Under Construction IT Load Capacity
5.2 Planned/Under Construction Raised Floor Space
5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
6.1 Tier Type
6.1.1 Tier 1 and 2
6.1.2 Tier 3
6.1.3 Tier 4
6.2 Data Center Size
6.2.1 Small
6.2.2 Medium
6.2.3 Large
6.2.4 Mega
6.2.5 Massive
6.3 Infrastructure
6.3.1 Cooling Infrastructure
6.3.1.1 Air-based Cooling
6.3.1.2 Liquid-based Cooling
6.3.1.3 Evaporative Cooling
6.3.2 Power Infrastructure
6.3.2.1 UPS Systems
6.3.2.2 Generators
6.3.2.3 Power Distribution Unit (PDU)
6.3.3 Racks and Cabinets
6.3.4 Servers
6.3.5 Networking Equipment
6.3.6 Physical Security Infrastructure
6.3.7 Design and Consulting Services
6.3.8 Other Infrastructure
6.4 End-User
6.4.1 IT & Telecommunication
6.4.2 BFSI
6.4.3 Government
6.4.4 Healthcare
6.4.5 Other End User
6.5 Geography
6.5.1 United States of America
6.5.2 Canada
6.5.3 Mexico
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 AECOM
7.1.2 DPR CONSTRUCTION, INC.
7.1.3 IBM Corporation
7.1.4 Schneider Electric SE
7.1.5 Fortis Construction Inc.
7.1.6 HITT Contrating Inc.
7.1.7 Clune Construction Company LP
7.1.8 Nabholz Construction Corporation
7.1.9 Turner Construction Co.
7.1.10 Hensel Phelps Construction Co. Inc.
7.1.11 Holder Construction Company
7.1.12 Rittal GMBH & Co.KG
7.1.13 Hitachi Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The North America Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User), and Geography (United States of America, Canada, and Mexico). The market sizes and forecasts are provided in values of USD for all the above segments.
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Data Center Size | |
| Small | |
| Medium | |
| Large | |
| Mega | |
| Massive |
| Infrastructure | |||||
| |||||
| |||||
| Racks and Cabinets | |||||
| Servers | |||||
| Networking Equipment | |||||
| Physical Security Infrastructure | |||||
| Design and Consulting Services | |||||
| Other Infrastructure |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
| Geography | |
| United States of America | |
| Canada | |
| Mexico |
Frequently Asked Questions
What is the current North America Data Center Construction Market size?
The North America Data Center Construction Market is projected to register a CAGR of 6.20% during the forecast period (2024-2030)
Who are the key players in North America Data Center Construction Market?
IBM Corporation, DPR Construction Inc., AECOM, Schneider Electric SE and Fortis Construction Inc. are the major companies operating in the North America Data Center Construction Market.
What years does this North America Data Center Construction Market cover?
The report covers the North America Data Center Construction Market historical market size for years: . The report also forecasts the North America Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
North America Data Center Construction Industry Report
Statistics for the 2024 North America Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
