According to a recent report by Allied Market Research, the global data center construction market is forecasted to grow from $212.6 billion in 2023 to $416.4 billion by 2032, at a compound annual growth rate (CAGR) of 7.4% during the period from 2024 to 2032.
The demand for data centers is rising as industries increasingly rely on digital infrastructure. The expansion of mobile device usage, higher internet penetration, and the adoption of cloud-based applications are driving the need for robust data centers. Hyperscale data centers, known for their large scale and efficiency, are crucial in meeting this growing demand. They provide significant computing power, storage, and networking capabilities, supporting advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), and big data analytics.
Many businesses are opting for colocation facilities instead of maintaining their own data centers. These providers offer shared space with secure infrastructure, allowing businesses to scale their IT needs without the expense of building and operating individual facilities. The rise in data generated by IoT, AI, and big data analytics further necessitates additional storage and processing capacity, boosting the demand for new data centers.
Hyperscale and colocation providers are also expanding into new regions to address growing local market demands. This regional expansion requires the establishment of data centers worldwide. The ongoing digital transformation across industries is increasing reliance on cloud services and data-driven applications, further fueling the need for strong data center infrastructure.
The data center construction market is divided into North America, Europe, Asia-Pacific, and LAMEA. North America held the largest market share in 2023, driven by the presence of major vendors in the United States and Canada and the high demand for smart AI-powered equipment in the region.
Prominent companies in the data center construction market include:
These companies are engaged in various strategies such as development, collaborations, expansions, joint ventures, and agreements to enhance their market presence globally.
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By Proptechbuzz
By Ravi Kumar
