Market Trends

Exploring the Rapid Expansion of the U.S. Data Center Construction Market

CHICAGO, May 15, 2024 /PRNewswire/ -- In a landscape driven by an insatiable demand for data storage and cloud services, the U.S. data center construction market is experiencing a remarkable growth trajectory, as detailed in Arizton's latest research report. This burgeoning sector is projected to flourish at a steady compound annual growth rate (CAGR) of 11.69% through the forecast period of 2023-2029.

For more insightful details on the U.S. data center construction market: Arizton's Market Reports

The comprehensive report covers an array of pivotal facets within the market, furnishing 57 tables, 177 figures, and an extensive 567 pages of industry information. At the foundation of this market expansion lies the significant progression of data center facilities, underscored by continuous investments from hyperscale operators. The allure of the U.S. market is further magnified by tax and sales incentives, and the profound role data centers play in evolving technological spheres, such as Big Data, IoT, AR, and VR.

By 2029, the market size is anticipated to reach a remarkable USD 47.72 Billion, almost doubling from USD 24.59 billion in 2023. This growth is rooted in the historic period of 2020-2022 and the base year of 2023, with forecasts extending through 2029. A closer look at the geographical analysis of this expansion reveals that areas including the Southeastern U.S., Midwestern U.S., Southwestern U.S., Western U.S., and Northeastern U.S. are prime contributors to market dynamics.

Emerging Data Center Hubs: The Engine of Growth

America's landscape is dotted with key data center infrastructural hubs, each uniquely contributing to the national market's vitality. Amongst these, Northern Virginia, branded as the "Data Center Alley," commands attention for its positional synergies near Washington D.C. and its exceptional connectivity. Westward, Silicon Valley continues to underscore its technological prowess, while Dallas-Fort Worth stands as a formidable hub in the Southwest, recognized for its cost-effectiveness and strategic location. Chicago's central positioning and expansive network connectivity also solidify it as a key player in regional market growth.

Diving Into Market Segmentation

Core & Shell Development: The Cornerstone of the Market

The segment of core and shell development is slated to grasp a lion’s share of the market, approximating over USD 9 billion by the year 2029. This sphere has seen a particular rise in cost in 2023 over the prior year. Key areas such as New Jersey and Chicago have witnessed higher development costs relative to others like Northern Virginia and Atlanta. In the Northeastern region, brownfield projects are on the rise, primarily due to the challenges posed by space limitations.

The Pivotal Role of Air-based Cooling Techniques

Regarding cooling methods within data centers, air-based cooling technologies are set to occupy a significant portion of the market, with projections reaching USD 3.60 billion by the end of 2029. Traditional CRAC units along with innovative free-cooling solutions are driving the market forward. Moreover, as data center operatives possess vast experience with air cooling systems, the ease of maintenance and existing industrial practices make this the default for dependable data center operations.

Investment and Expansion through M&A

The M&A space has been vibrant, indicative of the fact that this sector is on an uptrend, fueled by cloud and edge computing's rising demand. Some notable instances in 2023 include:

• Amazon's acquisition of a former insulation factory in Santa Clara, California, for more than USD 237 million, earmarked for a data center transformation.
• Gigapower, LLC, established as a joint venture between AT&T and BlackRock, aims to deliver fiber broadband services across several U.S. regions.
• A collaboration between American Real Estate Partners and Harrison Street Real Estate, launching a new joint venture to develop a armed shell campus in Northern Virginia, worth near USD 1 billion.

These instances underline the ongoing strategic initiatives reshaping the U.S. data center construction landscape.

A Detailed Look at the Data Center Construction Market Report Scope:

The report delves deep into a variety of areas that are essential to understanding the U.S. data center construction market:

Facility Types:

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Infrastructure:

• Electrical Infrastructure (including UPS Systems, Generators, and PDUs)
• Mechanical Infrastructure (highlighting Cooling Systems and Racks)
• General Construction components

Tier Standards:

• Tier I & II
• Tier III
• Tier IV

Geography:

• A comprehensive geographic analysis across the United States

Key Market Players:

Identifying leading providers of data center support infrastructure:

• ABB
• Caterpillar
• Cummins

...and top data center contractors:

• AECOM
• Corgan
• DPR Construction

...as well as key data center investors:

• Apple
• Amazon Web Services (AWS)
• Microsoft

The report enhances familiarity with the competitive market landscape and provides invaluable foresight into emerging trends, behavior shifts, and market integration across geographical expanses.

The Path Forward: Detailing Market Dynamics

The report brings to light the catalytic market drivers that will propel growth until 2029, pinpointing the relevant market size, emerging trends, and consumer behavior affecting the U.S. data center construction market. It presents a well-rounded analysis of potential market challenges and outlines strategic actions taken by entities within the competitive landscape.

This provides a foundation for businesses to prepare and align with upcoming market developments, empowering them with actionable insights and executive decision-making capabilities.

Secure This Competitive Intelligence

For businesses looking to gain a competitive edge, Arizton’s comprehensive market report is now available for purchase. Providing a 1-hour free analyst discussion post-purchase and an offer of 10% off on customization, the report aims to tailor insights to specific business needs.

• Obtain the Detailed TOC and secure your copy

Addressing Critical Market Queries

The report answers pressing questions relevant to market stakeholders:

• What are the key emerging trends within the U.S. data center construction market?
• What growth rate is forecasted, and how does it translate into market size by 2029?
• What are the anticipated power capacity additions to the market within the forecast period?

Engaging with this report offers businesses access to well-researched answers and strategic insights to empower data-driven decision-making.

Extensive Consumer Goods & Retail Technology Insights

For those seeking broader insights into related sectors, Arizton offers an array of market research reports. These include deep dives into the U.S. data center colocation market, cooling systems, power market dynamics, and global colocation trends.

Explore these top-selling research reports:

• U.S. Data Center Colocation Market - Industry Outlook & Forecast 2023-2028
• U.S. Data Center Cooling Market - Industry Outlook and Forecast 2021-2026
• United States Data Center Power Market - Industry Outlook & Forecast 2023-2028

The Arizton Edge

Arizton Advisory and Intelligence stand out with its dedicated commitment to delivering innovative and quality-driven research. Serving a global clientele that includes Fortune 500 companies, the firm is synonymous with cutting-edge market intelligence and consulting services.

As a firm that prioritizes customer satisfaction and availability around the clock, Arizton is the industry pioneer that businesses trust for insightful market analyses. With over 1500 published reports and an incessant commitment to delivering comprehensive data and analysis, the team at Arizton excels in producing incisive reports driven by a team of specialist analysts trained in the nuances of market research.

For more information or inquiries:

• Call: +1-312-235-2040 or +1-302-469-0707
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• Visit: Arizton's Official Blog or Homepage

In summary, the U.S. data center construction market, as meticulously chronicled in Arizton's report, stands as a testament to the current and impending advancements that define the digital infrastructure landscape. With the market's predicted upward trend, stakeholders are encouraged to harness the comprehensive insights provided to pave the way for progressive development and capture emerging opportunities within this dynamic sector.

SOURCE: Arizton Advisory & Intelligence