Press release

Data Center General Construction Market Worth USD 5.63 Billion, at 8% CAGR During 2019-2023 | Technavio

Sponsored by Businesswire

According to Technavio Research Report “Global Data Center
General Construction Market by type (base building shell construction,
and architecture planning and designing) and geography (APAC, Europe,
MEA, North America, and South America)
witnessed to grow USD
5.63 billion, at a CAGR of 8% from 2019 to 2023″. However, the market’s
momentum will decelerate in the coming years because of the decrease in
year-over-year growth.

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Technavio has published a new market research report on the global data center general construction  ...

Technavio has published a new market research report on the global data center general construction market from 2019-2023. (Graphic: Business Wire)

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Focus on construction of green data centers

Green data centers are gaining popularity in the global
data center general construction market
. These data centers are
energy-efficient and are built to minimize environmental impact. Green
data centers use low-emission building materials to create sustainable
ecosystems through efficient waste recycling. Although building green
data centers and obtaining certification are expensive processes, it is
a cost-saving strategy in the long-term, which can be realized once the
center is operational. Thus, the interest in green data centers is
increasing rapidly, which is anticipated to drive the growth of the global
data center general construction market
size during the forecast

Base building shell construction segment will garner the highest share

Base building shell construction segment is expected to hold the highest
share of the data center general construction market during the
forecast. Base building shell construction includes cost factors such as
building permits, local taxes, land evacuation and grading, roadways,
tie-ins to utilities, and building shell cost. Such critical factors
increase the need for general construction service providers who can
provide benefits in commissioning facility management by minimizing
initial capital investment. The general construction services help in
saving time, controlling cost, mitigating risks, and reducing errors.

“Globally, there has been a significant increase in the number of
data centers over the last few years owing to the massive growth of the
Internet. Thus, the investments associated with building new data
centers are increasing significantly, which is fueling the increased
demand for general construction services to manage the consulting and
base building shell construction. This is expected to drive the growth
of the segment during the forecast period,” says a senior research
analyst at Technavio.

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Data center general construction to witness fastest adoption in APAC

The amount of data being generated across industries is increasing
significantly in APAC, led by the rise in internet penetration, growing
demand for IoT devices, increasing implementation of automation
technologies across industries, and surging investments in communication
network infrastructure. This has led to the construction of new data
centers and expansion of existing data centers in the region. The data
center general construction market is growing in APAC mainly due to the
presence of data center hubs such as China, Japan, and Singapore. As a
result, APAC is expected to be the fastest growing region during the
forecast period.

Few of the Major Vendors in the Data Center General Construction Market

  • Arup Group Ltd.
  • DPR Construction
  • Holder Construction
  • Turner Construction Co.

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