North America Data Center Construction Market Outlook
According to the report by Expert Market Research (EMR), the North America data center construction market size reached a value of USD 23.03 billion in 2023. Aided by the rapid expansion of digital infrastructure, increasing demand for cloud services, and the proliferation of data-driven technologies, the market is projected to further grow at a CAGR of 9.3% between 2024 and 2032 to reach a value of USD 53.02 billion by 2032.
Data centers serve as the backbone of the digital economy, facilitating the storage, processing, and distribution of vast amounts of data critical to businesses, governments, and consumers. As the demand for digital services continues to soar, fuelled by trends such as remote work, e-commerce, streaming media, and the Internet of Things (IoT), the need for robust and scalable data center infrastructure becomes increasingly paramount. Consequently, data centre construction projects are proliferating across North America to meet the growing demand for data storage and processing capabilities.
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The ongoing digital transformation across various sectors, including finance, healthcare, retail, and entertainment, is driving the need for modern, high-performance data center infrastructure. Enterprises are investing in data centre construction projects to support their digital initiatives, enhance operational efficiency, and deliver seamless digital experiences to their customers, consequently driving up the North America data center construction market share.
The widespread adoption of cloud computing services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), is fuelling demand for data centre capacity in North America. Cloud service providers, hyperscale data center operators, and colocation facilities are expanding their footprint through new construction projects to meet the escalating demand for cloud-based applications and services.
The proliferation of edge computing applications, driven by the need for low-latency processing, real-time analytics, and distributed computing capabilities, is driving investment in edge data centers and micro data centers across North America. Edge data centers bring computing resources closer to end-users and IoT devices, enabling faster data processing and improved user experiences in latency-sensitive applications, leading to North America data center construction market growth.
Environmental sustainability and energy efficiency are key considerations in data center construction projects, with a growing emphasis on renewable energy sources, green building practices, and energy-efficient technologies. Data center operators are investing in solar, wind, and hydroelectric power generation to reduce their carbon footprint and minimise environmental impact.
The proliferation of big data analytics, machine learning, and artificial intelligence (AI) applications is driving demand for high-performance computing infrastructure in North America. Data-intensive workloads require robust data center infrastructure capable of processing and analysing large volumes of data in real-time, driving investment in advanced data center facilities and technologies, leading to North America data center construction market development.
Stringent data protection regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), are driving investment in secure and compliant data center facilities in North America. Data center operators must adhere to strict data security and privacy standards to protect sensitive information and ensure regulatory compliance, driving demand for purpose-built data centre facilities.
As per the North America data center construction market analysis, the United States dominates the market, accounting for the majority of construction projects and investments in the region. Major tech hubs such as Silicon Valley, Northern Virginia, and Texas are home to a significant concentration of data center facilities, driven by the presence of leading technology companies, cloud service providers, and colocation providers. The demand for data center capacity is particularly high in key metropolitan areas, where businesses require robust infrastructure to support digital services, e-commerce platforms, and cloud-based applications. In addition to established data center markets, emerging markets such as Atlanta, Phoenix, and Chicago are witnessing increased investment in data center construction projects, driven by favourable business environments, connectivity, and access to renewable energy sources.
North America Data Center Construction Market Segmentation
The market can be divided based on the infrastructure, size, tier type, end use, and country
Market Breakup by Infrastructure
- Electrical Infrastructure
- UPS Systems
- Others
- Mechanical Infrastructure
- Cooling Systems
- Racks
- Others
- General Infrastructure
Market Breakup by Size
- Small and Medium-Size Data Center
- Large-Size Data Center
Market Breakup by Tier Type
- Tier I and II
- Tier III
- Tier IV
Market Breakup by End Use
- BFSI
- IT and Telecom
- Government and Defence
- Healthcare
- Others
Market Breakup by Country
- United States of America
- Canada
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in North America data center construction market. Some of the major players explored in the report by Expert Market Research are as follows:
- IBM Corp.
- PCL Constructors Inc.
- DPR Construction
- Clune Construction Company
- Jacobs Solutions Inc.
- HITT Contracting Inc.
- E. Dunn Construction Company
- HOCHTIEF AG (Turner Construction Company)
- Hensel Phelps
- AECOM
- Others
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