Top Facts You Didn’t Know About Data Center Construction market & Impact of COVID-19Posted by Mrudula Anil Karmarkar on August 10th, 2022 The global data center construction market size is anticipated to reach USD 308.7 billion by 2027, according to a study conducted by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.4% from 2020 to 2027. The growth is attributed to the growing need for data storage processing capacity as digital transformation continues to gain pace across small as well as large enterprises. The demand for cloud computing and virtualization along with rise in digital transformation has increased data consumption and volume of information processed. The growing preference for contactless payments and remote working amid the COVID-19 outbreak is driving the need for high-speed information processing and storage capacity across various industries and industry verticals. All these factors bode well for the growth of the market. The continued rollout of 4G and 5G high-speed networks and the gradual emergence of quantum computing are expected to encourage the adoption of connected vehicles and smart appliances among individual consumers as well as enterprises. Subsequently, the demand for adequate storage capacity and high-speed information processing capability is also expected to increase. The growing demand for storage and high-speed information processing capacity is prompting IT infrastructure companies to opt for the latest, advanced storage solutions, including flash memory and Solid-State Drives (SSD). While the use of social media shows no signs of abating, the preference for online shopping and OTT platforms is also growing as the emergence of 5G technology is ensuring high-speed internet access in both urban and rural areas and is subsequently driving data volumes. The growing preference for using social media platforms and online shopping portals among individuals is particularly expected to drive the market. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/data-center-construction-market/request/rs1 The IT infrastructure providers focus on appropriate management of power distribution and cooling as part of the efforts to control power consumption, enhance operational efficiencies, and ultimately reduce the carbon footprint. As a result, innovative cooling techniques, such as liquid cooling and liquid immersion, are being deployed at data center facilities. Furthermore, in a bid to reduce power consumption, data center providers are migrating toward the construction of edge and colocation data centers. Data Center Construction Market Report Highlights
The gradual resumption of the construction of various data center facilities, which was suspended temporarily as part of the lockdowns implemented in various parts of the world following the outbreak of the COVID-19 pandemic, and the commencement of new IT projects are expected to revive the market for data center construction in 2021. Meanwhile, the market is also expected to witness continuous investments in the construction of hyperscale facilities, which houses IT infrastructure, power equipment, and cooling equipment. Public cloud providers, such as Facebook; Google, Inc., and Amazon.com, are expected to continue investing in upgrading their existing infrastructure, thereby creating growth opportunities for the market. The Asia Pacific IT infrastructure market witnessed significant growth during fiscal 2022. This growth can be attributed to the upsurge in the sales of networking equipment, including switches and routers. Companies, such as Huawei Technologies Co. Ltd., Dell, and HP Enterprises, played a decisive role in the growth of the market in the region. The launch of new products by these companies in the servers and networking space has contributed to the growth of the IT infrastructure segment across Asia Pacific. The establishment of multi-tenant or colocation facilities is expected to be the key trend driving the market for data center construction over the forecast period. Incumbents of several industries and industry verticals are migrating to cloud computing, thereby driving the demand for colocation facilities. The cost benefits associated with outsourcing storage requirements are also expected to drive the popularity of multi-tenant facilities. Data center outsourcing would be a key trend to watch out albeit the growth is expected to be relatively slower during 2020 owing to the outbreak of the COVID-19 pandemic. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/450433/ibb Grand View Research has segmented the global data center construction market based on IT infrastructure, power distribution and cooling infrastructure, miscellaneous expenses, tier type, end-use: Data Center Construction IT Infrastructure Outlook (Revenue, USD Billion, 2016 - 2027)
Data Center Construction Power Distribution & Cooling Infrastructure Outlook (Revenue, USD Billion, 2016 - 2027)
Data Center Construction Miscellaneous Expenses Outlook (Revenue, USD Billion, 2016 - 2027)
Data Center Construction Tier Type Outlook (Revenue, USD Billion, 2016 - 2027)
Data Center Construction End-use Outlook (Revenue, USD Billion, 2016 - 2027)
Favorable government initiatives to reduce barriers on IT companies to operate across the borders are yielding positive results for the network infrastructure ecosystem. As a result, companies, such as Huawei Technologies Co. Ltd, AT&T, and Sky Telecom have been investing aggressively in emerging economies in Latin America, MEA, and other regions to expand their business. Several market players are collaborating with their clients to introduce new techniques for making the data centers more efficient and advanced. For instance, Nortek Air Solutions, a manufacturer of commercial HVAC systems, and Facebook have co-developed a new technology for cooling. The new technology called State Point Liquid Cooling provides direct evaporative cooling using outside air, thereby making the facility water-efficient and energy-efficient. Some of the prominent players in the data center construction market include:
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