Russia Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 14.17 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Russia Data Center Construction Market Analysis
The Russia data center construction market is projected to register a CAGR of 14.17%.
- The upcoming IT load capacity of the Russian data center construction market is expected to reach 1516 MW by 2029.
- The country's construction of raised floor area is expected to increase by 4.3 million sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 216,571 units by 2029. Moscow is expected to house the maximum number of racks by 2029.
- There are 10 submarine cable systems connecting Russia to the rest of the world. One such submarine cable that was built in 2022 is Petropavlovsk-Kamchatsky - Anadyr, which stretches over 2173 Kilometers with landing points Anadyr, Russia, Petropavlovsk-Kamchatsky, Russia, Ugolnye Kopi, Russia.
Russia Data Center Construction Market Trends
IT and Telecom to Have Significant Market Share
- The cloud sector reached an IT load capacity of 55.43 MW in 2022 and is projected to surpass 217.73 MW by 2029, recording a CAGR of 19.87%. On the other hand, the banking, financial services, and insurance (BFSI) sector is predicted to register a CAGR of 17.58% and reach a capacity of 142.11 MW by 2029.
- Among the end users, cloud and media & entertainment are expected to contribute the highest market shares. In contrast, BFSI and manufacturing sectors are expected to witness the fastest growth over the study period.
- The market in Russia is also driven by rising cloud use across most companies due to developing technologies like artificial intelligence, Big Data, and blockchain among various end users. Russia adopted cloud services later than other nations, which worked in its favor because it is currently experiencing a significant cloud boom. However, the COVID-19 pandemic did not lower those forecasts, and the Russian cloud service industry expanded by 24% to reach a total market value of roughly USD 1.3 billion in 2020. It reached USD 3.4 billion in 2022 with a 23% y-o-y growth.
- Despite the pandemic, the primary factor was the demand for cloud PBXs, virtual call centers, and other office software to support enterprises' shift to a remote/hybrid format. The conflict in Ukraine has hampered the Russian hardware industry, and international firms like Intel Corp. and Advanced Micro Devices Inc. no longer provide parts to Russian hardware manufacturers. These instances may impact the supply chain of data centers in the near future.
Moscow to Have Significant Investments for Data Centers
- Moscow is one of the country's major hotspots. Russia's major engineering hub, Moscow, develops many products for the aviation, space, nuclear, and defense industries. Most of the world's largest companies have Moscow offices, including the headquarters of Russian industrial holdings. The Moscow government promotes industrial growth by providing tax benefits and other incentives. The city is home to the special economic zone Technopolis Moscow and around 40 industrial and technological parks.
- The city's data center business is booming due to the digital economy. The startup ecosystem in Moscow is ranked 29 globally and has lost 20 spots since 2021 due to a negative trend. Moscow is ranked first in Eastern Europe and Russia.
- Other areas that are expanding are St. Petersburg, Novosibirsk, Nizhny Novgorod, Vladivostok, Kazan, Udomlya, and others. St. Petersburg is the second-largest city in population. It is a significant Russian financial, industrial, and commerce hub focusing on the oil and gas sector, shipbuilding, aerospace, radio and electronics, software, computers, machine building, heavy machinery, and transportation, including the manufacture of tanks and other military hardware. Thus, cities other than Moscow may see an opportunity for data center construction in the coming years.
Russia Data Center Construction Industry Overview
The Russia data center construction market is fairly concentrated with significant players, such as Arup Group, Datadome, Schneider Electric, KyotoCooling, and Aermec.
In February 2023, Key Point, Russia's data center, announced the launch of its new data center, with a total capacity of 440 racks in its first phase. The facility aims to expand further by 90% in 2024. Such initiatives are expected to provide opportunities for the vendors in the market
Russia Data Center Construction Market Leaders
Arup Group
Datadome
Schneider Electric
KyotoCooling
Aermec
*Disclaimer: Major Players sorted in no particular order
Russia Data Center Construction Market News
- October 2022: DataPro Moscow II, the first data center in Eastern Europe with a Tier-IV integrity level, was opened by the DataPro corporation, an independent operator of data processing facilities in Russia. The new DataPro data center can accommodate 1,600 racks in total. The initial batch of 800 racks is currently in use. By the end of 2020, the second lot of 800 racks will be usable. It will enable DataPro to hold second place in the Russian commercial data-center market, with 3,600 racks overall in its data centers.
- September 2022: Yandex announced its plans to construct a brand-new 63MW data center in western Russia's Kaluga Oblast. The brand-new building will be situated in Kaluga's Grabtsevo Industrial Park, around 100 miles south of Moscow. With a 130,000 square meter footprint and 63 MW of power, the new data center can accommodate more than 3,800 server racks with a 15 kW load.
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 5G Developments Fuelling Data Center Investments
4.2.2 Growing Cloud Servce adoption
4.2.3 Green Data Centers rising awarness of Carbon-Neutrality leading to Infrastructure upgrades
4.3 Market Restraints
4.3.1 Security Challenges Impacting Growth of Data Centers
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
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 AECOM
7.1.2 NTT Ltd.
7.1.3 DPR CONSTRUCTION, INC.
7.1.4 IBM Corporation
7.1.5 Schneider Electric SE
7.1.6 Fortis ConstructionInc.
7.1.7 HITT Contrating Inc.
7.1.8 Clune Construction Company LP
7.1.9 SPIE UK
7.1.10 Caterpillar Inc.
7.1.11 Honeywell International Inc.
7.1.12 Johnson Controls International PLC
7.1.13 Arup Group
7.1.14 Datadome
7.1.15 KyotoCooling
7.1.16 Aermec S.p.A
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Russia Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, we are tracking the capital expenditure that was incurred while building the existing data center facilities and also estimating the future capex based on upcoming data center facilities.
The Russia 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), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). 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 |
Frequently Asked Questions
What is the current Russia Data Center Construction Market size?
The Russia Data Center Construction Market is projected to register a CAGR of 14.17% during the forecast period (2024-2029)
Who are the key players in Russia Data Center Construction Market?
Arup Group, Datadome, Schneider Electric, KyotoCooling and Aermec are the major companies operating in the Russia Data Center Construction Market.
What years does this Russia Data Center Construction Market cover?
The report covers the Russia Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Russia Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Russia Data Center Construction Industry Report
Statistics for the 2024 Russia Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Russia 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.
