Data Center Construction Market Regional Analysis:
North America Market Insights
North America industry is likely to hold largest revenue share of 36% by 2035. The market growth in the region is spurred by the rise of digital services, cloud tech, the Internet of Things (IoT) gadgets, and media streaming making it necessary to build more data centers to manage and process this vast amount of information. The demand for network and connectivity solutions that offer faster and more dependable links between data centers is also pushing the construction of facilities that can support strong infrastructure for these needs.
The data center construction market in the United States is forecasted to hit a value of USD 134.2 billion by the end of the forecast period, growing at a CAGR of 6%. The United States leads the market in North America, taking up a revenue share of 43% in 2022. The introduction of the Electronic Medical Records (EMR) Mandate in the United States has pushed the use of cloud-based healthcare systems for storing and safeguarding patient records. This development has boosted the demand for data center construction, fueled by the expansion of digital data in the healthcare industry.
Canada's data center construction market growth is propelled by the increased adoption of cloud computing, the need for more effective data center operations, and the rising demand for data center infrastructure. Factors like significant investments in tech infrastructure, higher data consumption, and the business demand for cloud services are fueling the data center construction market growth in Canada.
APAC Market Insights
The APAC region will also encounter huge growth for the data center construction market during the forecast period and will hold the second position owing to the increasing digitalization efforts. Several countries in Asia Pacific, such as Singapore, Malaysia, Thailand, and the Philippines, are prioritizing digital advancements. Government support and ongoing digital efforts are significant factors pushing the growth of the data center construction market in this area. The rising demand for cloud services also plays a crucial role in driving market growth. Moreover, the rollout of 5G networks is boosting the need for edge data centers in Asia Pacific. This demand is prompting the building of data centers closer to users, accelerating market growth.
China holds a dominant position in the APAC data center construction market. The Chinese government has issued policy papers advocating for the development of new data center clusters in four areas, as part of the 'Eastern Data, Western Computing' strategy to balance the supply and demand of computing capacity.
Singapore is another crucial player in the Asia Pacific data center construction market, recognized for its sophisticated infrastructure and connectivity. The country has become a central point for data centers in the region, drawing investments and acting as a gateway to Southeast Asia. Singapore's underwater cable connections have played a role in its emergence as a data center hub.
