North America Data Center Construction Market Size

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.