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How Big Is The Data Center Construction Market?

envision posted in Information Communications Technology

How Big Is The Data Center Construction Market is one among the primary areas where every analyst, telecom, and cloud-related organizations are keenly emphasizing to understand. Telecom and IT industries have witnessed significant transformations in terms of technological advancements and one among them are data center construction technologies. A data center is usually a facility which is composed of networked computers and storage systems to store the businesses or other organizations information and to organize, process and store large amounts of data. The data center includes servers, storage subsystems, routers, and firewalls. Because of growing IT and telecom industries, there is a big need for the cost-effective and efficient storage of the data and any computer automated company may fall to its knees where there is no backup system so these markets have gained much attention in the global arena.

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The Origin Of The Data Center Construction Market Bounces Back To 1950,

In 1950’s where IBM combined with American airlines in making the passenger reservation system.

In 1971 first LAN connecting 255 systems with speed of 2.5 Mbps was set by ChassManhattan Bank.

In the midst of 1990’s “.com” usage has raised and lead to the construction of the enterprises.

In 2002 Amazon web services has begun its services based on the cloud computing.

In 2011 Facebook has started the open computer project to share specifications and best prices.

In 2013, Computer Maestro Google has invested $7.35 billion for internet infrastructure and this known as the largest construction in the history of the data center construction.

Holder construction, Turner construction, and DPR construction stand top in the market of data center construction followed by the companies like Structure Tone, Mortenson Construction, and Gilbane Construction. Data center construction indulges both electrical and mechanical equipment. In specific, mechanical equipment include cooling solutions, racks, and others whereas electrical equipment includes energy storages, generators, UPS, transfer switches, switch gears and rack PDU’s. The data center construction is present in many end-user industries like retail colocation, power and energy, healthcare, BFSI, IT, telecommunications, defense and others. Among all the end users banking, financial services and insurance (BFSI) is the major end-user industry as data storage is crucial as it relates to the cyber security and network marketing. Telecom and IT are the fastest growing industries where data construction market is considered so as to organize, process, store and protect the data related to many domains in which they are indulged.

Projected Annual Data Center Construction Size ($Billion)

North America accounted for the largest share of 38% as this contains tens of thousands of servers followed by APAC in the regard of data center construction. North America has 1,704 data centers in U.S. and 162 data centers in Canada. The cities including New York, Los Angeles, and Chicago are predominant as they include many key players dealing with these markets like Facebook as it has a data center in Prineville which connects over 850 million users and Apple is going to build its server farm to support iTunes and iCloud. Microsoft is about to launch its data center in South Korea as to expand the global reach of their cloud infrastructure.

Rise in the usage of smart devices, growing usage of the mobile data, rich connectivity of the internet and data storage are propelling the growth of data center construction markets. The factors like a combination of IoT, distributed cloud computing, and rise in the requirement of storage devices are accelerating the data center construction markets. As many companies are forwarding to cloud-based models and advancement of power and cooling technologies are becoming opportunities for this market in the global juncture. Envision Inteligence says the importance of ‘mega data centers’ will continue to increase in the coming years. In terms of space, by 2018 such facilities will account for over 70% of all service provider data center construction projects.

In 2016 the data center market saw big deals from major players, new economic and regulatory policy, and the wild card that is strategic cloud adoption. As per the Envision Inteligence estimates, the data center construction market is valued at $ 26.90 million in 2018 and is expected to reach the value of $40.70 million in 2024 with the compound annual growth rate (CAGR) of 12.25%. The data center construction market will be having exceptional growth in the near future as this market has got a bunch of advantages and many end-user industries such as telecom, IT, banking, insurance, and finance relying on it.

How Big is The Data Center Construction Market?
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How Big is The Data Center Construction Market?
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