Data Center General Construction Market Worth USD 5.63 Billion, at 8% CAGR During 2019-2023 | Technavio

Technavio has published a new market research report on the global data center general construction market from 2019-2023.

LONDON--(BUSINESS WIRE)--Jun 13, 2019--

According to Technavio Research Report " Global Data Center General Construction Market by type (base building shell construction, and architecture planning and designing) and geography (APAC, Europe, MEA, North America, and South America) is witnessed to grow USD 5.63 billion, at a CAGR of 8% from 2019 to 2023". However, the market’s momentum will decelerate in the coming years because of the decrease in year-over-year growth.

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Technavio has published a new market research report on the global data center general construction market from 2019-2023. (Graphic: Business Wire)

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Focus on construction of green data centers

Green data centers are gaining popularity in the global data center general construction market. These data centers are energy-efficient and are built to minimize environmental impact. Green data centers use low-emission building materials to create sustainable ecosystems through efficient waste recycling. Although building green data centers and obtaining certification are expensive processes, it is a cost-saving strategy in the long-term, which can be realized once the center is operational. Thus, the interest in green data centers is increasing rapidly, which is anticipated to drive the growth of the global data center general construction market size during the forecast period.

Base building shell construction segment will garner the highest share

Base building shell construction segment is expected to hold the highest share of the data center general construction market during the forecast. Base building shell construction includes cost factors such as building permits, local taxes, land evacuation and grading, roadways, tie-ins to utilities, and building shell cost. Such critical factors increase the need for general construction service providers who can provide benefits in commissioning facility management by minimizing initial capital investment. The general construction services help in saving time, controlling cost, mitigating risks, and reducing errors.

“Globally, there has been a significant increase in the number of data centers over the last few years owing to the massive growth of the Internet. Thus, the investments associated with building new data centers are increasing significantly, which is fueling the increased demand for general construction services to manage the consulting and base building shell construction. This is expected to drive the growth of the segment during the forecast period,” says a senior research analyst at Technavio.

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Data center general construction to witness fastest adoption in APAC

The amount of data being generated across industries is increasing significantly in APAC, led by the rise in internet penetration, growing demand for IoT devices, increasing implementation of automation technologies across industries, and surging investments in communication network infrastructure. This has led to the construction of new data centers and expansion of existing data centers in the region. The data center general construction market is growing in APAC mainly due to the presence of data center hubs such as China, Japan, and Singapore. As a result, APAC is expected to be the fastest growing region during the forecast period.

Few of the Major Vendors in the Data Center General Construction Market are:

  • Arup Group Ltd.
  • DPR Construction
  • Holder Construction
  • Turner Construction Co.

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About Technavio

Technavio is a leading global technology research and advisory company. It provides detailed market research reports that provide clients with actionable insights to help them identify market opportunities and design effective strategies to optimize their market position.

With over 500 specialized analysts, Technavio boasts of an extensive report library comprising of over 10,000 reports, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than a hundred Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets. Technavio helps companies to assess their competitive position within changing market scenarios.

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SOURCE: Technavio Research

Copyright Business Wire 2019.

PUB: 06/13/2019 06:00 AM/DISC: 06/13/2019 06:01 AM

Copyright Business Wire 2019.

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