Data Center Construction Market in the US 2017-2021
About Data Center Construction
A data center is a centralized storehouse, physical or virtual, for remote storage, and processing of data and information. Data centers constitute the backbone of essential business operations. There is a significant amount of growth in enterprise applications worldwide because of the use of advanced technologies to gain a competitive advantage. Enterprises are focusing on the construction of green data centers to reduce power consumption and their impact on the environment. The construction of a data center includes design, architecture, installation of electrical and mechanical systems, as well as general construction services. Data center certifications have grown in importance, especially for colocation and managed hosting service providers, to attract customers.
Technavio’s analysts forecast the data center construction market in the US to grow at a CAGR of 6.34% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the data center construction market in the US for 2017-2021. To calculate the market size, the report considers the revenue generated from the investments made in new data centers and the renovation of existing ones.
Technavio's report, Data Center Construction Market in the US 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Data Center Construction Market in the US 2017-2021
Technavio recognizes the following companies as the key players in the data center construction market in the US: Corgan Associates, DPR Construction, Fluor, Gensler, HDR, Holder Construction Group, Jacobs Engineering Group, Syska Hennessy Group, Turner Construction, Page Southerland Page, and Vanderweil Engineers.
Other Prominent Vendors in the market are: AECOM, AKF Group, Balfour Beatty, Carlson Design Construct, Clune Construction Company, Fortis Construction, Gilbane, Hensel Phelps Construction, HITT Contracting, Integrated Design Group, JE Dunn Construction, McGough, Merrick & Company, Mortenson Construction, Pepper Construction, Skanska, Structure Tone, Whiting-Turner, and Wendel.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is increase in the purchase of renewable energy sources. The increasing consumption of electricity by data centers across the globe is creating awareness among enterprises to operate green data centers that are powered by renewable energy sources. Advanced designs and strategies are implemented in data centers to enhance their operational performance. The use of renewable energy sources, energy-efficient infrastructure, and waste recycling are some of the methods implemented in green data centers.”
According to the report, one driver in market is growing adoption of cloud-based services. There is an increased traction among enterprises to adopt cloud-based services for at least one of the operational needs of their business. In terms of cloud infrastructure, the CSPs are rapidly increasing their availability zones close to the customer to reduce network latency and facilitate high-availability services. The major CSPs involved in the introduction of new availability zones includes data centers by Amazon Web Services, Microsoft, Google, IBM, and Alibaba. These CSPs are involved in the construction of mega data center facilities that will operate thousands of IT infrastructures. In 2016, Amazon Web Services added 11 availability zones, out of which five were in the Americas. Google opened two data centers in 2016 that are in Oregon, US, and Japan.
Further, the report states that one challenges in market is consolidation of data centers. There are many reasons for enterprises to consolidate data center projects, but the reduction of cost is the primary motivation. Consolidation helps in saving costs up to 30%, enhances security up to 35%, improves efficiency by 50%, and reduces power consumption by 55%. In 2015, the federal government of the US saved close to $3 billion by the consolidation of data centers. The US Federal agencies plan to save around $8 billion by consolidation that will lead to the closing down of around 5,000 data centers across the country by 2019. Many enterprises are consolidating their existing facilities; they are moving their IT operations to colocation data centers and adopting cloud-based services. Increased OPEX due to higher power consumption and carbon emission will lead to more consolidation during the forecast period.
Corgan Associates, DPR Construction, Fluor, Gensler, HDR, Holder Construction Group, Jacobs Engineering Group, Syska Hennessy Group, Turner Construction, Page Southerland Page, Vanderweil Engineers, AECOM, AKF Group, Balfour Beatty, Carlson Design Construct, Clune Construction Company, Fortis Construction, Gilbane, Hensel Phelps Construction, HITT Contracting, Integrated Design Group, JE Dunn Construction, McGough, Merrick & Company, Mortenson Construction, Pepper Construction, Skanska, Structure Tone, Whiting-Turner, and Wendel.