Authored By: Sarah
11 Jul 2024

 Data Center Mechanical Construction Market Size to grow by USD 18123.3 million between 2024-2028

According to a research report “ Data Center Mechanical Construction Market” by Product (Cooling solutions, Rack, Server rail kit, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 18123.3 million, at a CAGR of  14.76% during the forecast period. The data traffic explosion, driven by industry automation and advancements in networking communication technologies, as well as increasing investment in Human-Machine Interface (HMI) technologies, is fueling the global expansion of data centers. This trend is compelling businesses to construct their own data centers or lease space from colocation providers. The construction boom will generate significant demand for data center infrastructure components, including racks, server rail kits, and cooling solutions, throughout the forecast period. For instance, Amazon's recent establishment of AWS in India, Asia Pacific (Hyderabad) Region, underscores this trend.

Browse market data tables, figures, and in-depth TOC on “Data Center Mechanical Construction Market” by Product (Cooling solutions, Rack, Server rail kit, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Product, the Cooling solutions segment is projected to dominate the market size in 2024

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By Geography, North America  segment is expected to hold the largest market size for the year 2024

The Data Center Mechanical Construction Market is experiencing significant growth due to the increasing demand for advanced and efficient data centers. Key drivers include the surge in digital transformation initiatives and the need for businesses to optimize their IT infrastructure. Mechanical construction plays a crucial role in ensuring data centers operate at peak efficiency, with a focus on cooling systems, power distribution, and fire suppression. Market size is projected to expand at a robust CAGR through 2027.

North America is forecasted to hold the largest market size by region in 2024

The Data Center Mechanical Construction Market is experiencing significant growth due to the increasing demand for advanced IT infrastructure. Companies are investing heavily in constructing new data centers and upgrading existing ones to accommodate the expanding digital economy. Mechanical construction plays a crucial role in ensuring the efficient operation of these facilities, with key components including HVAC systems, power distribution, and fire suppression. Market growth is driven by factors such as cloud computing, big data analytics, and the Internet of Things (IoT).

The Data Center Mechanical Construction Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ABB Ltd.
  • Asetek
  • Black Box Corp
  • Coolit Systems
  • Delta Electronics Inc.
  • Eaton Corp. Plc
  • Equinix Inc.
  • Friedhelm Loh Stiftung and Co. KG
  • Green Revolution Cooling Inc.
  • International Business Machines Corp.
  • King Slide Works Co. Ltd.
  • Legrand SA
  • LiquidStack B.V.
  • Munters Group AB
  • NetRack Enclosures Pvt. Ltd.
  • Schneider Electric SE
  • STULZ GmbH
  • Submer Technologies SL
  • Super Micro Computer Inc.
  • Vertiv Holdings Co.
.

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Research Analysis Overview

The Data Center Mechanical Construction Market is witnessing significant growth due to the increasing demand for IT and telecom infrastructure, particularly in the Tier 3 and Tier 4 segments. The IT infrastructure segment, including colocation services, networking equipment, and public cloud providers, is driving the market's growth. Hyperscale facilities are leading the way, with their large-scale mechanical installations, electrical installations, and architectural design. IT projects, sustainability, project management, and site selection are crucial factors in data center construction. Engineering firms and construction companies are essential partners in ensuring the successful execution of these projects. Sustainability is a key consideration, with a focus on energy efficiency and reducing carbon emissions. Mechanical installations include cooling systems, power distribution, and fire suppression, while electrical installations include power generation and distribution. Security is another critical aspect, with a focus on physical security and cybersecurity. The adoption of 5G technology, edge computing, and processing capabilities are expanding the market's scope. Data storage requirements continue to grow, fueled by digital transformation initiatives and the increasing use of prefabricated components. Public cloud providers and hyperscale facilities are leading the way in implementing these technologies, but the trend is expected to continue in smaller data centers as well.

Market Research Overview

The Data Center Mechanical Construction Market is experiencing significant growth due to the increasing demand for IT and telecom infrastructure, particularly in the Tier 3 and Tier 4 segments of the IT infrastructure market. Colocation services, networking equipment, and hyperscale facilities are driving this growth, with public cloud providers and hyperscale data centers leading the way. IT projects require skilled professionals in cooling solutions, power distribution, and mechanical and electrical installations. The IT infrastructure segment is investing heavily in capital for new data centers and upgrades to existing ones. Cooling solutions, switchgears, transfer switches, and generators are essential components of mechanical infrastructure, while electrical infrastructure includes power distribution and backup systems. The market for data center construction is complex, requiring compliance with various standards, uptime guarantees, and redundancy. Skilled labor is in high demand, particularly for the installation of efficient cooling systems, renewable energy sources, and energy efficiency measures. Project management, architectural design, site selection, and engineering and construction firms play a crucial role in the data center construction process. The digital transformation initiatives of finance, healthcare, and mission-critical applications are also driving demand for data center construction. Prefabricated components, security, 5G technology, edge computing, processing capabilities, data storage, and artificial intelligence (AI) and big data are all factors influencing the market. Renewable energy sources, energy efficiency, sustainability, and compliance standards are increasingly important considerations in data center design and construction.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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