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Data Center Market
Data Center Market
Dublin, Aug. 12, 2024 (GLOBE NEWSWIRE) — The “Data Center Market Landscape 2024-2029” report has been added to ResearchAndMarkets.com’s offering.
The Data Center Market was valued at USD 248.72 billion in 2023, and is expected to reach USD 398.80 billion by 2029, rising at a CAGR of 8.19%.
Regarding investment, North America leads the global data center market, with consistent growth, year on year. From 2020 to 2029, the region will oversee a significant increase in investments, with a CAGR of 6.73%. North America, particularly North Virginia, also known as the ‘Data Center Capital of the World,’ is the epitome of the data center market, boasting the highest concentration of facilities on a global scale, with several data center facilities. Locations like Ashburn in Loudoun County, Virginia, and other states like Texas, California, Arizona, Illinois, Georgia, Oregon, and New York/New Jersey are key hotspots, attracting major colocation and hyperscale operators.
While North America remains the dominant data center market player in investment and power capacity, its eastern counterpart- the APAC region, has also emerged as a key industry, experiencing substantial investment growth during the forecast period. With a CAGR of 10.25%, the APAC displays robust data center-centric development driven by countries such as India, China, Australia, and Japan. Adopting artificial intelligence (AI) and increasing investments from data center operators have contributed significantly to the region’s growth trajectory. Southeast Asian countries such as Malaysia, Indonesia, and even Singapore stand out as significant investors, with anticipated acceleration in investments from these nations in the coming years.
KEY TRENDS
Sustainability Initiatives on the Rise
The popularity of green energy is increasing worldwide and is expected to grow. It is crucial to fully adopt green energy resources as soon as possible due to the destructive impacts of climate change and global warming. In recent years, Middle Eastern countries such as the UAE, Saudi Arabia, Qatar, Turkey, Bahrain, Jordan, and Kuwait have been working to incorporate renewable energy into their energy generation. In Europe, the Nordic region is known for its sustainable practices, with wind farms and solar panels widely used to generate clean energy. North America and the Asia-Pacific region are also embracing this trend, focusing on more sustainable practices, and many companies are setting net-zero carbon emissions targets for the next two to three decades.
Rise in Rack Power Densities
The power density of equipment racks is a critical factor in data center design, planning, cooling, and power supply. In recent years, there has been a significant increase in the power density of IT equipment racks. This is due to the growing demand for high-performance computing (HPC), driven by the adoption of converged and hyper-converged solutions and virtualization. The average rack power density will increase to 10 to 12 kW in the coming years. The surge in data center deployments reflects the increasing demand, with projections indicating a 50% increase in power usage by 2025 and a five-fold growth in global data generation from 2019 to 2025. To keep up with this rapid growth, the data center market must maximize efficiency by fitting more computing power into each rack or square foot. Over the past decade, there has been a clear trajectory from modest power densities of 4-5 kW per rack to today’s densities exceeding 50 kW. Modern applications and data volumes drive rack density to unprecedented levels.
Governments Aiding Data Center Development
The growth of the data center market is observed in countries offering tax incentives. Many state and local governments provide investments and sales tax incentives to attract data center operators. In China, tax incentives such as VAT exemptions on equipment and reduced CIT rates for local investments have played a crucial role in fostering the growth of data centers. India’s Data Centre Policy, which grants infrastructure status to the sector and state-level incentives such as reduced electricity duties, aims to encourage investment in the data center market. In Germany, incentives focus on compliance with GDPR and outsourcing IT equipment, creating a conducive environment for data center investment. The UK has invested in renewable energy sources and digital information protection laws to attract data center projects.
Heightened Demand for Cloud-based Services
The demand for digital transformation in businesses has significantly increased the uptake of cloud-based services in the marketplace. The market has seen a swift escalation in adopting cloud computing applications and services, driving the development of extensive hyperscale cloud data centers. This surge in cloud computing is transforming the landscape of the data center market within the area, prompting numerous innovations and the integration of advanced infrastructure.
Significantly, the growth in the usage of cloud services is fueled by leading providers, including Google, Amazon Web Services, Microsoft, Alibaba Cloud, Oracle, Tencent Cloud, and IBM. These cloud service providers enable organizations to store information, operate software, and utilize computing resources via the Internet, reducing dependence on traditional data centers. The shift towards cloud platforms brings myriad benefits, such as enhanced flexibility, scalability, and cost-effectiveness, positioning it as a favored option across various sectors like IT, telecommunications, manufacturing, retail, logistics, healthcare, and government bodies.
SEGMENTATION ANALYSIS
Segmentation by Facility Type
Hyperscale Data Centers
Colocation Data Centers
Enterprise Data Centers
Segmentation by Infrastructure
Segmentation by IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers, and Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
Segmentation by Cooling Techniques
Segmentation by General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Physical Security
Fire Detection & Suppression
DCIM
Segmentation by Tier Standard
Tier I & II
Tier III
Tier IV
COMPETITIVE LANDSCAPE
In the North American region, well-known construction contractors like AECOM, Arup, and Turner Construction are capitalizing on the burgeoning data center market, supported by the expansion efforts of major colocation operators such as Equinix, Digital Realty, CyrusOne, QTS Realty Trust, STACK Infrastructure, NTT DATA, Aligned Data Centers. In addition, hyperscale tech giants like Amazon Web Services (AWS), Google, Meta (Facebook), and Microsoft are aggressively expanding their footprint, particularly in regions like Northern Virginia and Texas, paving the way for further construction activities.
Latin America presents a dynamic data center market landscape with established and emerging contenders. Colocation operators such as Ascenty and ODATA (Aligned Data Centers) are spearheading the development of multiple data center facilities. ABB, Stulz, Vertiv, and several other infrastructure companies are crucial in facilitating construction activities and ensuring efficient operations across regions worldwide. The entry of new players, such as Layer 9 Data Centers and CloudHQ, has also widened the data center market’s horizons.
Western Europe has construction contractors like Atkins, Deerns, Dornan, ISG, Mercury, and several others competing for opportunities in a data center market dominated by established colocation operators such as Colt Data Centre Services (COLT DCS), Equinix, STACK Infrastructure, Digital Realty, and others. Major hyperscale operators such as Google, Microsoft, and Meta continue to invest confidently, driving up the demand for construction services. New players entering the data center market, such as Global Technical Realty and Stratus DC Management, bring dynamism to the industry, fueling competition and innovation.
IT Infrastructure Vendors
Support Infrastructure Vendors
Data Center Contractors
AECOM
Arup
Corgan
DPR Construction
Fortis Construction
Holder Construction
Jacobs
Mercury
Red Engineering
Rogers-O’Brien Construction
Syska Hennessy Group
Turner Construction
Turner & Townsend
AlfaTech
Atkins
Aurecon
Basler & Hofmann
Black & Veatch
BlueScope Construction
Brasfield & Gorrie
CallisonRTKL
Cap Ingelec
Clark Construction Group
Climatec
Clune Construction
COWI
DC PRO Engineering
Dornan
Edarat Group
Ehvert
EMCOR Group
EllisDon
EYP MCF
Gensler
Fluor Corporation
Gilbane Building Company
HDR
HITT Contracting
Hoffman Construction
ISG
JE Dunn Construction
Kirby Group Engineering
kW Engineering
Laing O’Rourke
Linesight
M+W Group (Exyte)
McLaren Construction Group
Morrison Hershfield
Mortenson
PM Group
Quark
Rosendin
Royal HaskoningDHV
Salute Mission Critical
Sheehan Nagle Hartray Architects
Skanska
Southland Industries
Sturgeon Electric Company
Structure Tone
Sweco
The Mulhern Group
The Walsh Group
The Weitz Company
TRINITY Group Construction
Urbacon
Data Center Operators
21Vianet Group (VNET)
Amazon Web Services (AWS)
Apple
AUBix
China Telecom
Colt Data Centre Services (Colt DCS)
Compass Datacenters
CyrusOne
Digital Realty
Equinix
GDS Services
Global Switch
Iron Mountain
Meta (Facebook)
Microsoft
NTT DATA
STACK Infrastructure
ST Telemedia Global Data Centres
Vantage Data Centers
3data
AdaniConneX
Africa Data Centres
AirTrunk
Aligned Data Centers
American Tower
AQ Compute
Aruba
AtlasEdge
atNorth
AT TOKYO
BDx (Big Data Exchange)
Bulk Infrastructure
CenterSquare
CDC Data Centres
Chayora
China Mobile
Chindata
CloudHQ
Cologix
COPT Data Center Solutions
CtrlS Datacenters
Data4
DataBank
DC BLOX
Digital Edge DC
Digital Parks Africa
Echelon Data Centres
EdgeConneX
Edge Centres
EdgeUno
Element Critical
ePLDT
eStruxture Data Centers
fifteenfortyseven Critical Systems Realty (1547)
Flexential
Green Mountain
Gulf Data Hub
H5 Data Centers
HostDime
IXcellerate
Hyperco
KDDI (Telehouse)
Keppel Data Centres
Khazna Data Centers
LG Uplus
maincubes SECURE DATACENTERS
Milicom (Tigo)
Nabiax
Nautilus Data Technologies
NEXTDC
Open Access Data Centres
Orange Business Services
OVHcloud
Pi Datacenters
Prime Data Centers
PowerHouse Data Centers
Princeton Digital Group (PDG)
Proximity Data Centres
Pure Data Centres Group
QTS Realty Trust
Quantum Switch Tamasuk (QST)
Raxio Data Centres
Rostelecom Data Centers
Sabey Data Centers
Scala Data Centers
Sify Technologies
Skybox Datacenters
SpaceDC
Stream Data Centers
SUNeVision (iAdvantage)
Switch
T5 Data Centers
Tenglong Holdings Group
Telecom Italia Sparkle
TierPoint
TONOMUS (ZeroPoint DC)
Turkcell
Urbacon Data Centre Solutions
Wingu Africa
YTL Data Center
Yondr
Yotta Infrastructure (Hiranandani Group)
New Entrants
Agility
Cloudoon
ClusterPower
Corscale Data Centers
Crane Data Centers
EDGNEX Data Centres by DAMAC
DHAmericas
Edged Energy
Evolution Data Centres
Form8tion Data Centers
Gatineau Data Hub (AVAIO Digital Partners)
Gaw Capital
Global Technical Realty
Kasi Cloud
Layer 9 Data Centers
Quantum Loophole
Regal Orion
Rowan Digital Infrastructure
Stratus DC Management
Surfix Data Center
YCO Cloud
KEY QUESTIONS ANSWERED
1. How big is the data center market?
2. What are the key trends in the data center industry?
3. What is the growth rate of the global data center market?
4. What is the estimated market size in terms of area in the global data center market by 2029?
Key Attributes
Report Attribute
Details
No. of Pages
329
Forecast Period
2023-2029
Estimated Market Value (USD) in 2023
$248.72 Billion
Forecasted Market Value (USD) by 2029
$398.8 Billion
Compound Annual Growth Rate
8.1%
Regions Covered
Global
For more information about this report visit https://www.researchandmarkets.com/r/otu3bi
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Publish date : 2024-08-11 23:28:00
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