The data center general construction market is projected to progress at a CAGR of 10.26 % between 2022 and 2027, according to research firm Technavio Research.
What does this mean when it comes to cold hard cash? The size of the market is forecast to increase by $10.24 billion during the forecast period, said the firm.
An increase in investment in data centers has been a key driver for the growth and will continue to be over the next three years. See the chart below for details.
Indeed, the growing use of cloud services and the generation of massive amounts of data in every enterprise has increased the need for data centers, according to the research.
"Google, Amazon.com, Apple, and Facebook have invested heavily in building their own data centers. They rely on general contractors for design and engineering services," said a press release about the report.
"For example, Amazon.com Inc. announced plans to open a cloud data center in Indonesia. Therefore, increasing investment in building data center facilities by companies such as Facebook, Amazon.com, Apple, and Google will increase the demand for design and construction management services. Hence, these factors are expected to drive market growth during the forecast period."
The greening of data centers
As municipalities grapple with data center expansion juxtaposed against concerns around sustainability and climate change, building green data centers will drive much of the construction efforts, according to Technavio.
"Green data centers are built to minimize environmental impact as they are considered energy efficient. These centers create a sustainable ecosystem through efficient waste recycling and using low-emission building materials. In addition, these centers also require advanced technologies and strategies to build and operate a green data center."
Some of these advanced technologies include liquid cooling and immersion cooling which have their own benefits and challenges.
However, cooling is not the only challenge, said Technavio. "One of the significant challenges hindering the growth is the need to meet the contractual schedule and performance requirements that the vendors in the market have guaranteed."
Other obstacles include the Russia-Ukrainian war, COVID-19 recovery, global inflation, supply chain disruptions, trade tensions and the risk of recession.
Want to learn more about cloud-native data centers? Watch our data center strategies virtual event on demand today.