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Data Center Construction Market in the US 2017-2021

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.

Key vendors

  • Corgan Associates
  • DPR Construction
  • Fluor
  • Gensler
  • HDR
  • Holder Construction Group
  • Jacobs Engineering Group
  • Syska Hennessy Group
  • Turner Construction
  • Page Southerland Page
  • Vanderweil Engineers
Other prominent vendors
  • 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
  • Wendel
Market driver
  • Tax incentives for data centers and reduction in electricity cost.
  • For a full, detailed list, view our report
Market challenge
  • Rise in construction and installation costs.
  • For a full, detailed list, view our report
Market trend
  • Increase in the purchase of renewable energy sources.
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

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.

Companies Mentioned

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.

  • Executive summary
  • Scope of the report
  • Research Methodology
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
      • Table Data center average rack power density 2016 and 2021 (kW per rack)
      • Table Data center site selection criteria
      • Table Data center construction cost analysis in the US
      • Table Availability of tax incentives for data centers in the US by state
      • Table Data center construction project flow
    • Market size and forecast
      • Table Data center construction market in the US 2016-2021 ($ billions)
      • Table New data center construction market in the US 2016-2021 ($ billions)
      • Table Data center renovation market in the US 2016-2021 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by construction
    • Electrical construction
      • Table Data center construction market in the US by electrical construction 2016-2021 ($ billions)
    • General construction
      • Table Work involved in general construction
      • Table Data center construction market in the US by general construction segment 2016-2021 ($ billions)
    • Mechanical construction
      • Table Data center construction market in the US by mechanical construction segment 2016-2021 ($ billions)
  • Market segmentation by electrical construction
    • Table Data center construction market in the US by electrical construction segment 2016-2021 ($ billions)
    • UPS
      • Table Data center construction market in the US by UPS segment 2016-2021 ($ billions)
    • Generators
      • Table Data center construction market in the US by generators 2016-2021 ($ billions)
    • Transfer switches and switchgears
      • Table Data center construction market in the US by transfer switches and switchgears 2016-2021 ($ billions)
    • Rack PDU
      • Table Data center construction market in the US by rack PDU 2016-2021 ($ billions)
    • Other electrical installations
      • Table Data center construction market in the US by other electrical installations 2016-2021 ($ billions)
  • Market segmentation by mechanical segmentation
    • Table Data center construction market in the US: Segmentation by mechanical construction 2016-2021 ($ billions)
    • Cooling solutions
      • Table Data center construction market in the US by cooling solutions 2016-2021 ($ billions)
    • Racks
      • Table Data center construction market in the US by racks 2016-2021 ($ billions)
    • Others
      • Table Data center construction market in the US by other mechanical construction 2016-2021 ($ billions)
  • Market segmentation by tier standards
    • Table Tier system for data centers
    • Tier 1 and Tier 2
      • Table Data center construction market in the US by Tier 1 and Tier 2 standards 2016-2021 ($ billions)
    • Tier 3
      • Table Data center construction market in the US by Tier 3 standard 2016-2021 ($ billions)
    • Tier 4
      • Table Data center construction market in the US by Tier 4 standard 2016-2021 ($ billions)
  • Decision framework
  • Drivers and challenges
    • Market drivers
    • Impact of drivers on key customer segments
      • Table Impact of drivers
    • Market challenges
    • Impact of challenges on key customer segments
      • Table Impact of challenges
  • Market trends
    • Increase in the purchase of renewable energy sources
    • Growing need for edge data center facilities
    • Escalating need for DCIM and automation
  • Vendor landscape
    • Competitive scenario
      • Table Vendors offering matrix
  • Key vendor profiles
    • Corgan Associates
    • DPR Construction
    • Fluor
    • Gensler
    • HDR
    • Holder Construction Group
    • Jacobs Engineering Group
    • Page Southerland Page
    • Syska Hennessy Group
    • Turner Construction
    • Vanderweil Engineers
    • Other prominent vendors
      • Table Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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