Latest News- Data Center Construction Market in US: Enterprise is expected to lead the Application segment during 2025-2029

The Data Center Construction Market in US is being driven by Increasing number of data centers

The Data Center Construction Market in US is expected to grow at a CAGR of 10.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 15016.1 million. In the business world, there is a heightened focus on the environmental impact of data centers, specifically concerning energy consumption and carbon emissions. Companies and consumers are prioritizing sustainability and seeking eco-friendly alternatives. Many organizations have established ambitious sustainability goals, such as carbon neutrality or the transition to 100% renewable energy. Data centers, as substantial energy consumers, hold significant influence in attaining these objectives. For instance, in August 2023, Bitcoin mining company Genesis Digital Assets (GDA) expanded into South Carolina with new eco-friendly data centers. Eco-friendly data centers align with corporate sustainability strategies and contribute to organizations meeting their environmental targets. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • Enterprise
  • Cloud
  • Colocation
  • Hyperscale
• End-user
  • IT and telecom
  • BFSI
  • Government and defense
  • Others
• Type
  • Electrical construction
  • Mechanical construction
  • General construction
• Geography
  • US

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increasing number of data centers
• Increasing merger and acquisition among vendors
• Digital transformation of business surging demand for data centers

However, the market also witnesses some limitations, which are as follows:

• Cybersecurity issues associated with data centers
• High initial investment required for data center construction
• Complex regulatory environment for data centers

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Market Scope in Data Center Construction Market in US Research Report

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Research Analysis Overview

The Data Center Construction market in the US is experiencing significant growth due to the increasing demand for advanced telecommunications infrastructure. Key components of data centers include electrical infrastructure, UPS systems, mechanical infrastructure, cooling systems, racks, and IT and telecommunications. Sectors driving growth include government and defense, 5G networks, cloud-based services, edge data centers, and digitalization. Edge Centres, colocation, and telecommunication providers are also major players. Security, physical damage prevention, edge computing, real-time data processing, and data-driven decision-making are crucial considerations. The technology sector's reliance on advanced infrastructure for latency reduction and real-time data processing further fuels market expansion.

Market Research Overview

The Data Center Construction Market in the US is a significant segment of the global IT infrastructure services industry, encompassing Electrical Infrastructure, UPS Systems, Other Mechanical Infrastructure, Cooling Systems, Racks, IT and Telecommunications, and related sectors. Key growth drivers include increasing government investments in advanced IT infrastructure to address skill gaps, the proliferation of cloud computing, artificial intelligence (AI), and data generation. Additionally, sectors such as Government and Defense, Healthcare, and Cloud Applications are investing heavily in upgrading their IT infrastructure to meet evolving demands. Technavio forecasts that these trends will fuel market expansion in the coming years.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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