DUBLIN–(BUSINESS WIRE)–The “U.S. Data Center Construction Market – Industry Outlook & Forecast 2024-2029” report has been added to ResearchAndMarkets.com’s offering.
The U.S. data center construction market by investment is projected to reach $47.72 billion by 2029 from $24.59 billion in 2023, growing at a CAGR of 11.69% from 2023-2029
The U.S. data center construction market is booming due to demand from hyperscale companies, Artificial Intelligence (AI) needs, and the growth of edge computing. To keep up with AI demands, data center operators adjust their infrastructure and develop innovative cooling and energy efficiency solutions to meet sustainability targets.
The rising demand for data centers nationwide will provide significant opportunities for construction contractors to generate revenue. Some well-known construction contractors in the U.S. data center construction market include AECOM, Arup, Jacobs Turner Construction, DPR Construction, Holder Construction, and Cargan.
The U.S. data center construction market includes all the major global colocation operators, including Equinix, Digital Realty, QTS Realty Trust, CyrusOne, Aligned Data Center, DataBank, Iron Mountain, Vantage Data Centers, NTT DATA, and STACK Infrastructure. The major hyperscale operators investing in the U.S. data center construction market include Amazon Web Services (AWS), Microsoft, Meta (Facebook), and Google. They are expanding their presence across all the top data center destinations in the US.
Supply chain disruptions, increasing inflation rates, a shortage of skilled workers, and power restraints are estimated to impact the U.S. data center construction market negatively. High demand for data center capacity was fueled by hyperscale companies, financial institutions, healthcare organizations, and various major corporations, accounting for an unprecedented power capacity volume in the market.
The U.S. government will promote data center investments through various initiatives such as increasing the availability of land for development, reducing electricity tariffs, offering sales and tax incentives, and enabling the procurement of renewable energy. Such initiatives will drive the growth of the U.S. data center construction market during the forecast period.
Digitalization across businesses will contribute to a surge in data center investments by colocation, cloud, internet, and telecommunication providers. Telecom companies, such as AT&T, T-Mobile, CenturyLink, and Qualcomm, are responsible for deploying and introducing 5G services in the U.S. The Texas data center market is becoming competitive. It is witnessing the entry of several colocation and hyperscale operators developing data center facilities in the state.
The U.S. market is among the costliest for developing a data center facility. The average cost ranges between USD 10 million and USD 11 million per MW, and it is likely to increase by 5% – 7% yearly. The core submarkets are witnessing land and power constraints, limiting the opportunities for new companies to enter the market. However, several new submarkets, including Aurora and Elk Grove Village, are preferred.
SEGMENTATION INSIGHTS
- Modular power infrastructure in data centers is expected to result in cost savings over time. These systems are more efficient, leading to space savings and the need for less maintenance.
- The major power supply companies, such as Dominion Energy and NOVEC (Northern Virginia Electric Cooperative), are meeting the growing power demand for data centers in North Virginia. Due to the rising construction of data centers, these power companies have recommended developing their own substations to power their data center campuses.
- Due to its sustainability, HVO fuel as a substitute for diesel fuel in generators is expected to increase in the U.S. data center construction market. Several operators are replacing diesel with HVO fuel to power their backup generators.
- Real-time monitoring software with automation and AI features is becoming increasingly significant. This technology can predict maintenance needs, identify component failures, and perform automatic switchovers to ensure uninterrupted operations.
- Several new and innovative power and cooling systems have been introduced in the U.S. data center construction market, focusing on sustainability. Infrastructure providers are focusing more on developing products with reduced environmental impact.
- Cooling techniques such as evaporative coolers are rising in regions with favorable climates to effectively cool data centers.
- In addition to building and setting up data centers, the company focuses on enhancing physical security and monitoring and managing facilities using a real-time Data Center Infrastructure Management (DCIM) system.
GEOGRAPHICAL ANALYSIS
- North Virginia is considered the world’s data center capital, accounting for the highest concentration of data center facilities. The market has the presence of all the major colocation and hyperscale data center operators.
- Texas is considered the second-largest data center market in the US. It comprises several major locations, such as Dallas, Austin, Irving, San Antonio, and Houston.
- California, often referred to as Silicon Valley, comprises several cities such as Santa Clara, San Jose, Los Angeles, San Francisco, and Sacramento. It is among the top three data center markets in the United States.
- Arizona is among the most active and dynamic markets regarding hyperscale demand and development.
- Illinois has become a hub for data centers in the last three to four years, with the major locations including Chicago, Elk Grove Village, DeKalb, and Aurora.
- Georgia is attracting investments from hyperscale data center operators such as Microsoft and Meta (Facebook). Atlanta is among the preferred locations, followed by Lithia Springs and Douglasville.
- The Oregon data center market is registering the fastest growth. The state has emerged as a future hot spot for hyperscale data center development. The market is in several locations, such as Portland and Hillsboro.
KEY QUESTIONS ANSWERED
- What are the key trends in the U.S. data center construction market?
- What is the growth rate of the U.S. data center construction market?
- How big is the U.S. data center construction market?
- What is the estimated market size in terms of area in the U.S. data center construction market by 2029?
- How many MW of power capacity is expected to reach the U.S. data center construction market by 2029?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 567 |
| Forecast Period | 2023 – 2029 |
| Estimated Market Value (USD) in 2023 | $24.59 Billion |
| Forecasted Market Value (USD) by 2029 | $47.72 Billion |
| Compound Annual Growth Rate | 11.6% |
| Regions Covered | United States
|
Industry Overview
- Market Snapshot
- Historical vs Present Market Scenario
- US vs Global Market Comparison
- Shift Towards Sustainability
- Comparison of Different Types of Data Centers
- Data Center Construction Delays
- Data Center Pre-Construction Phase
- Construction Documents
- Entitlements and Building Permits
- Will-Serve Letters
- Sourcing of Materials
- Site Preparation
- Data Center Construction Costs
- Data Center Investment by Facility Type
Market Opportunities & Trends
- Data Centers Operators Making Efforts to be More Sustainable and Environmentally Friendly
- 5G Enhancing the Demand for Edge Data Centers
- Adoption of Advanced Ups Batteries
- Rise in Rack Power Density
- Sustainable and Innovative Data Center Technologies
- AI & Hpc Applications Driving Liquid Immersion & Direct-To-Chip Cooling
- Deployment of Microgrids in Data Centers
- AI Transforming the Landscape of the Data Center Market
Market Growth Enablers
- Significant Development of Data Center Facilities
- Ongoing Investments by Hyperscale Operators in the US
- Rise in M&A as Well as Joint Venture Activities
- Tax and Sales Incentives are a Major Boost for Data Center Growth
- Increase in the Adoption of Cloud-based Services and the Shift from On-Premises to Cloud Platforms
- Enhanced Connectivity Driving Growth in the Data Center Market
- Data Centers are Becoming More Important due to Big Data, the Internet of Things (IoT) , as Well as Augmented Reality (Ar) and Virtual Reality (Vr)
Market Restraints
- Market Growth is Being Hindered by Disruption in the Supply Chain
- Skilled Workforce Shortage and Discrimination
- Challenges in Picking the Right Location for Building Data Centers
- Issues with Security Affecting the Expansion of Data Centers
- Power and Water Consumption by Data Centers
- Concerns About Data Center Carbon Emissions
VENDOR LANDSCAPE
Key Data Center Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Delta Electronics
- Eaton
- Legrand
- Rolls-Royce
- Schneider Electric
- STULZ
- Vertiv
Key Data Center Contractors
- AECOM
- Arup
- Corgan
- DPR Construction
- Fortis Construction
- Holder Construction
- Jacobs
- Rogers-O’Brien Construction
- Syska Hennessy Group
- Turner Construction
Key Data Center Investors
- Apple
- Amazon Web Services (AWS)
- CyrusOne
- DataBank
- Digital Realty
- Equinix
- Meta (Facebook)
- Microsoft
- NTT DATA
Other Data Center Support Infrastructure Providers
- Airedale
- Alfa Laval
- Asetek
- Bloom Energy
- Carrier
- Condair
- Cormant
- Cyber Power Systems
- Enlogic
- FNT Software
- Generac Power Systems
- Green Revolution Cooling (GRC)
- HITEC Power Protection
- Johnson Controls
- KOHLER
- KyotoCooling
- Mitsubishi Electric
- Natron Energy
- NetZoom
- Nlyte Software
- Rittal
- Siemens
- Trane (Ingersoll Rand)
- Tripp Lite
- Yanmar (HIMOINSA)
- ZincFive
Other Data Center Contractors
- AlfaTech
- BlueScope Construction
- Brasfield & Gorrie
- CallisonRTKL
- Clark Construction Group
- Climatec
- Clune Construction
- EMCOR Group
- EYP MCF
- Fitzpatrick Architects
- Fluor Corporation
- Gensler
- Gilbane Building Company
- HDR
- HITT Contracting
- Hoffman Construction
- JE Dunn Construction
- JHET Architects
- kW Engineering
- WSP (kW Mission Critical Engineering)
- Linesight
- M+W Group (Exyte)
- Morrison Hershfield
- Mortenson
- Rosendin
- Salute Mission Critical
- Sheehan Nagle Hartray Architects
- Skanska
- Southland Industries
- Sturgeon Electric Company
- Structure Tone
- The Mulhern Group
- The Walsh Group
- The Weitz Company
- TRINITY Group Construction
Other Data Center Investors
- Aligned Data Centers
- American Tower
- AUBix
- CloudHQ
- Cologix
- Compass Datacenters
- COPT Data Center Solutions
- CoreSite
- DartPoints
- DC BLOX
- Edge Centres
- EdgeConneX
- EdgePresence
- EdgeCore Digital Infrastructure
- Element Critical
- Evoque
- Flexential
- fifteenfortyseven Critical Systems Realty (1547)
- H5 Data Centers
- HostDime
- Iron Mountain
- Netrality Data Centers
- Novva Data Centers
- PowerHouse Data Centers
- Prime Data Centers
- QTS Realty Trust
- Sabey Data Centers
- Skybox Datacenters
- Stream Data Centers
- STACK Infrastructure
- Switch
- T5 Data Centers
- TierPoint
- Vantage Data Centers
- Vapor IO
- Yondr
- 365 Data Centers
New Entrants
- Corscale Data Centers
- Crane Data Centers
- Edged Energy
- NE Edge
- Quantum Loophole
- Rowan Digital Infrastructure
For more information about this report visit https://www.researchandmarkets.com/r/io3ot0
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