Data Center Construction Market | Global Business Opportunities, Technological Innovation, End-Use Insights, and Emerging Trends Outlook to 2027 | Grand View Research, Inc.

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According to a new report published by Grand View Research, the construction process essentially refers to activities involved in the designing, planning, and construction of a facility. Data center costs comprise IT infrastructure, power distribution and cooling solutions, and several miscellaneous expenses.

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.

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.

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Data Center Construction Market Report Highlights

The IT infrastructure segment is expected to register a CAGR of 6.3% over the forecast period as a result of the increasing demand for high-performance computing servers, storage capacity, and sophisticated networking infrastructure
In Asia Pacific, the market is expected to witness high growth over the forecast period in line with the rapid development of IT and communication infrastructure and the continued rollout of 5G networks
Key players focus on product innovation and introduction of new technologies to their portfolio. For instance, in June 2018, Huawei Technologies Co. Ltd. released Smart DC 3.0, a solution that leverages AI technology to manage cooling and the utilization of power and resources

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Data Center Construction Market Segmentation

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, and region:

Data Center Construction IT Infrastructure Outlook (Revenue, USD Billion, 2016 – 2027)

Networking Equipment

Data Center Construction Power Distribution & Cooling Infrastructure Outlook (Revenue, USD Billion, 2016 – 2027)

Power Distribution

Data Center Construction Miscellaneous Expenses Outlook (Revenue, USD Billion, 2016 – 2027)

Miscellaneous Expenses

Data Center Construction Tier Type Outlook (Revenue, USD Billion, 2016 – 2027)

Tier 1
Tier 2
Tier 3

Data Center Construction End-use Outlook (Revenue, USD Billion, 2016 – 2027)

IT & Telecom
Government & Defense

Data Center Construction Regional Outlook (Revenue, USD Billion, 2016 – 2027)

North America
Asia Pacific
Latin America
Middle East & Africa

List of Key Players of Data Center Construction Market

Hewlett Packard Enterprise
Dell EMC
Equinix, Inc.

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About Grand View Research


Grand View Research is a market research and consulting company that offers market research reports, syndicated and customized reports. The company is headquartered in San Francisco, California. It offers client engagement for business consulting and market intelligence from various domains. The clientele is based across various countries with queries coming from more than 50 industries worldwide.

Grand View Research helps its clients to make informed decisions by helping them understand current trends and scenarios. Every year Grand View Research accomplishes more than 300 multi-country market studies to optimize consulting for clients.

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