by Brianna Crandall — May 2, 2016 — Research group Technavio recently published a market research report indicating that the growing data center construction market in the United States will witness mega data centers with Tier 4 standards.
The report presents a detailed segmentation of the U.S. data center construction market by technology: electrical construction (UPS, energy storage, generators, and transfer switches and switchgear), mechanical construction (cooling solutions and racks), and general construction (architecture, site preparation, frames, walls and doors, raised flooring, ceilings, and security systems).
Market drivers
Technavio’s market research analysts estimate the U.S. data center construction market will grow at a compound annual growth rate (CAGR) of around 4% between 2016 and 2020. The demand for cloud-based services and the growth of the Internet of Things (IoT) have pushed enterprises in the United States to construct adequate data centers.
Of late, the organizations are developing green data center facilities to reduce power consumption and carbon dioxide emissions. The growing demand for robust information technology (IT) infrastructure across businesses in the country, along with an increase in data complexity, are expected to result in more innovations in the data center domain.
Rakesh Panda, lead analyst, ICT, Technavio Research, pointed out:
Enterprises using data centers are focusing to develop green data centers in the U.S. that consume significantly less amount of power and minimize environmental impact. Concepts such as evaporative cooling, use of low-emission building materials, and waste recycling are some of the methodologies utilized in green data centers. Moreover, green data center facilities help in running IT operations, power, and cooling infrastructure in an energy-efficient manner, thereby propelling this market’s growth until the end of 2020.
Largest segment
The uninterruptible power supply (UPS) segment accounts for a significant part of the market share and is expected to reach more than USD 1.690 million by 2020. UPS systems provide backup power during disruptions that might interfere with the workload and may harm equipment such as servers and storage units, notes Technavio. The increasing adoption of UPS systems across several upcoming data centers in the United States is expected to the aid in the growth of this market segment until the end of 2020.
Key market players
The key players in the data center construction market in the USA include: Corgan Associates, DPR Construction, Fluor and others. The market is said to be highly competitive, with nearly 4000 operational data centers across the country. Most vendors have established long-term working relationships with enterprises for the construction and renovation of their data centers, according to the report.
A more detailed analysis is available in the full report, Data Center Construction Market in the US 2016-2020, available for purchase from Technavio. The company offers customized reports by other regions and specific segments upon request.
