DUBLIN--(BUSINESS WIRE)--The "Data Center Construction Market in US - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The US Data Center Construction Market is Projected to Generate Revenues of Around $12 Billion by 2024
The increased demand for closed-based services, the increased investment from colocation providers, the rise in edge data center computing, favorable tax incentives, and the growth of automation and artificial intelligence in data centers are a few major drivers in the US data center construction market. The procurement of renewable energy sources and the implementation of Energy Star certified products is driving the US data center construction market.
The market is likely to witness many brownfield constructions, especially in the North-Eastern US. The increasing vigilance of the infrastructure is driving vendors toward end-to-end facility automation, which is expected to affect the US data center construction market significantly. The US data center construction market is witnessing high investment from colocation and cloud hosting service and hyperscale data center operators.
The US data center construction market is adopting innovative solutions such as multipurpose cooling systems and modular infrastructure solutions, which are expected to drive the US data center construction market. The market is migrating toward the adoption of over 42U racks - 45U, 47U, and 48U. The adoption of Lithium-ion batteries, fuel cell technology, natural gas generators, intelligent PDUs, and high voltage switchgear is expected to increase the competition in the market among electrical infrastructure vendors.
Further, the direct liquid cooling and immersion cooling market is expected to become competitive as the adoption of HPC infrastructure among data centers is growing in the US. Initiatives such as Open Commute Projects are expected to bring several new cooling techniques and technologies to the market, thereby increasing the competition among mechanical infrastructure vendors.
US Data Center Construction Market: Segmentation
This market research report includes detailed market segmentation by infrastructure, general construction, facility size, tier standards, and geography. The US data center construction market by electrical infrastructure comprises UPS (uninterrupted power supply) systems, generators, transfer switches & switchgears, rack PDUs, other electrical infrastructure.
The UPS system segment dominated the market size in 2018 and is expected to grow at a CAGR of around 1.3% during the forecast period. The increased adoption of lithium-ion and Nickel-Zinc UPS systems is expected to boost the data center UPS market in the US.
The market is also witnessing the growth in generators powered by fuel cells to reduce carbon emission. The growing interest in green data centers to reduce the efficiency of data centers is driving the demand for intelligent racks PDUs in the market. Vendors are offering PDUs in a variety of colors for identification purposes.
The mechanical construction segment in the data center construction market is categorized into cooling systems, racks, and others. The cooling system segment accounted for the largest market, share in 2018. The extensive use of indirect evaporative coolers, air or water-side economizers, and free cooling chillers is driving the market.
The US data center construction market by general construction is classified into building development, installation and commissioning services, building design, physical security, and DCIM. The growing number of brownfield, Greenfield, and modular facilities projects with the installation of on-site renewable power sources such as wind and solar energy is likely to continue in the market over the next few years. Further, infrastructure vendors are increasingly partnering with major contractors to increase the revenue share.
Air-based and liquid-based cooling technique are the two major cooling systems available in the US data center construction market. Free cooling solutions are gaining more popularity than liquid-based cooling solutions. However, the use of chilled water systems is still highly prevalent in the market, particularly in the Northern US.
CRAC & CRAH units work in conjunction with other cooling units such as chillers, cooling towers, dry coolers, and condensers. There is a growing demand for both CRACs and CRAHs units in the data center to increase efficiency and productivity in the IT infrastructure. The South Eastern and the Mid-Western US are majorly adopting CRAH units. The construction of mega and hyperscale facilities is a driving factor for the increased adoption of both CRAC and CRAH units with 2N redundant configuration.
The hyperscale segment dominated the US data center construction market in 2018 and is expected to grow steadily during the forecast period. The South Eastern US and the Western US witnessed the highest investment from investors in the hyperscale data center facilities.
The Tier III standard segment accounted for the highest market size in 2018, which is expected to grow at a CAGR of over 1% during the forecast period. The need for tier III certification from the Uptime Institute to attract customers and increase the occupancy rate will boost the growth of this segment in the US market.
Market Growth Enablers
- Increased Demand for Cloud-based Services
- Growing Investment from Colocation Providers
- Growing Construction of Green Data Center Facilities
- Increasing Demand for Edge Data Centers
- Tax Incentives Attracts Investment in Specific States
Market Growth Restraints
- Growing Market Consolidation
- Increase in Power Outages & Power Consumption
- Location Constraints for Data Center Construction
- Rising Water Consumption by Data Centers
Market Opportunities & Trends
- Automation & Aritificial Intelligence in Data Centers
- Rising Renewable Procurement to Power Data Centers
- Growing Number of M&As
- Rising Adoption of Lithium-ion, Nickel-Zinc, and Fuel Cells
- Increase in Modular Data Center Deployment
Key Vendor Analysis
The US data center construction market is continuing to grow in terms of greenfield, brownfield, and modular data center construction. The market is witnessing the increased growth of data centers across the US, with the high adoption of efficient and modular data center infrastructure solutions. The market has a strong presence of vendors in all three categories - electrical infrastructure, mechanical infrastructure, and general construction.
Market Participants in the US Data Center Construction Market:
Key Construction Contractors
- DPR Construction
- Holder Construction
- Jacobs Engineering Group
- Syska Hennessy Group
- Turner Construction
Key Infrastructure Providers
- Airedale Air Conditioning
- Schneider Electric
Key Data Center Investors
- COPT Data Center Solutions
- Digital Realty
- Stream data center
- Vantage Data Center
Other Prominent Construction Contractors are:
- Balfour Beatty
- BlueScope Construction
- Clune Construction
- Fluor Corp.
- Fortis Construction
- Gilbane Building Co.
- Hensel Phelps
- HITT Contracting
- Hoffman Construction
- JE Dunn Construction
- Morrison Hershfield
- Mortenson Construction
- Rogers-O'Brien Construction
- Structure Tone
- Walsh Group
- Whiting-Turner Contracting
Prominent Infrastructure Providers
- Altima Technologies
- Bloom Energy
- Cyber Power System
- Data Aire
- Delta Group
- Generac Power System
- Green Revolution Cooling
- Hewlett Packard Enterprise
- Hitech Power Protection
- Nlyte Software
- Nortek Humidity
- MTU On Site Energy
- Tripp Lite
Prominent Data Center Investors
- DC Blox
- H5 Data Centers
- Quality Technology Services
- Sabey Data Centers
T5 Data Center
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