Data Center Mechanical Construction Market - By Data Center, By Infrastructure, By End Use & Forecast, 2024 - 2032

Data Center Mechanical Construction Market Size

The global data center mechanical construction market was valued at USD 77.3 billion in 2023 and is projected to grow at a CAGR of 7.5% between 2024 and 2032. Increasing infrastructure development across globe is providing significant market opportunities for data center mechanical construction. Industries in Europe, including finance, healthcare, retail, and manufacturing, are rapidly adopting digital technologies.
 

According to Eurostat, in 2022, 70% of all EU businesses reached a basic level of digital intensity. The proportion of SME with basic level of digital intensity was 41% in Greece, 47% in Bulgaria, 89% in Denmark, and 90% in Finland. This trend is increasing the need for strong and scalable data centers to handle more data storage, processing, and analysis. Companies require data centers with high-performance computing, better security, and efficient cooling. This need is driving investments in new data centers and upgrades to existing ones
 

Advancements in cloud-based solutions, including more powerful processors and optimized software, demand high-performance computing capabilities. Modern cloud services require data centers to support complex computing tasks, large-scale data processing, and rapid performance. This creates a need to build data centers with high-performance servers and advanced cooling systems to manage the increased computational load and ensure optimal performance. Also, to accommodate the growing demand for high-performance computing, data centers are constructed with scalable infrastructure, including modular designs and flexible capacity expansion options.
 

Data Center Mechanical Construction Market Trends

The demand for precision air conditioning units is rising with the growth of high-density data centers. These units are critical for maintaining stable environmental conditions, driving market growth through innovations in temperature and humidity control. Moreover, the shift towards energy-efficient cooling solutions is boosting the adoption of face mounted plenum fans with EC motors. These fans are increasingly used for their ability to reduce energy consumption and operational costs, supporting market growth. In addition, the need for precise temperature and humidity control in data centers is elevating the demand for CRAC units. The market is growing as innovations in fan arrays and airflow management enhance the performance and efficiency of these systems.
 

Building and running a data center requires a large financial investment. This includes costs for land, construction, equipment, cooling systems, power infrastructure, and security. The high upfront capital needed can be a barrier for investors and operators. This expense includes purchasing and installing servers, storage systems, cooling units, and power backup systems. Data centers also have long payback periods, taking time to recover the initial investments through revenue. This financial burden can deter new entrants and affect the viability of data center projects. Beyond initial costs, data centers face ongoing expenses for power, maintenance, staffing, and upgrades. High operational costs can impact profitability and make budget management challenging.
 

Data Center Mechanical Construction Market Analysis

Based on data center, the market is segmented into small-scale, medium-scale and large-scale. In 2023, the large-scale segment accounted for over 45% of the market share and is expected to grow significantly over the forecast time frame. Major IT & telecom companies are expanding their data center infrastructure and building large-scale, hyperscale data centers to support their cloud computing services and platforms. For instance, in December 2023, AWS announced plans to invest USD 15 billion in expanding its two existing data center regions in Japan by 2027. This significant investment aims to enhance its infrastructure capabilities in Japan, due to which the market for data center mechanical construction is expected to rise over forecast time frame.
 

Based on the end use, the market is divided into BFSI, energy, government, healthcare, manufacturing, IT & telecom, and others. The IT & telecom segment held 23% of the market share in 2023. The IT & telecom sector's growing reliance on cloud computing and hosting services is driving demand for data centers that offer high uptime, scalability, and robust connectivity. This demand is fueling market growth as companies expand their digital communication infrastructure.
 

The rollout of 5G and next-generation networks is driving the need for data centers that can support higher data traffic volumes and lower latency. This trend is propelling market growth as IT & telecom companies seek infrastructure capable of handling the demands of modern digital services.
 

In 2023, the U.S. accounted for a data center mechanical construction market share of over 65% in North America. The U.S. data construction market is driven by the strong demand for cloud services, digital transformation initiatives, and the expansion of hyperscale data centers. The key trends include the adoption of green data centers, edge computing, and the integration of AI for operational efficiency. Major companies, such as Amazon Web Services, Microsoft, and Google, are leading the market, continuously investing in new facilities and expanding the existing ones to meet the growing demand. The regulatory environment focuses on data privacy and sustainability, further shaping market dynamics.
 

Germany’s data construction market is expanding, driven by industrial demand, data privacy regulations, and the country’s status as a central European hub. Trends in the market include the adoption of sustainable energy solutions, modular data centers, and advanced cooling technologies to improve operational efficiency. Companies, such as Interxion, NTT Global Data Centers, and Equinix are the key players, continuously investing in new facilities and expanding existing ones to support the growing demand. The regulatory environment in Germany is particularly stringent, emphasizing data security, privacy, and sustainability.
 

China’s data construction market is rapidly expanding, driven by the tech industry growth, increasing cloud adoption, and government initiatives promoting the digital infrastructure. The key trends include the development of hyperscale data centers, the integration of AI & 5G technologies, and the focus on energy-efficiency. Major companies, such as Alibaba Cloud, Tencent Cloud, and China Telecom, are leading the market, with significant investments in new data centers across the country. The regulatory environment is heavily influenced by government policies on data localization, security, and privacy, thereby shaping market dynamics.
 

Data Center Mechanical Construction Market Share

AECOM, NTT Facilities, Turner & Townsend, DPR Construction, Obayashi Corporation, DSCO Group, Jacobs Engineering, Mace Group, Kajima Corporation, Skanska held a substantial market share of over 3% in the data center mechanical construction industry in 2023. AECOM is a multinational engineering firm that provides design, consulting, construction, and management services across various sectors, including infrastructure, transportation, water, and environmental projects. The company caters to a wide range of clients including government agencies, private corporations, and international organizations. The company focuses on expanding its global presence, particularly in the Asia Pacific, to tap into emerging markets to cater to a growing data center demand in the market.
 

Jacobs Engineering is a global provider of technical, professional, and construction services. It operates in sectors, including aerospace, defense, infrastructure, energy, and telecommunications. The company is well-known for its focus on innovation, particularly in technology integration and sustainable design, making it a major player in complex data centers infrastructures in areas such as energy efficiency and security. The company invests heavily in R&D to develop modern solutions including smart data centers and advanced colling technologies to stay ahead of competition in the market.
 

Data Center Mechanical Construction Market Companies

Major players operating in the data center mechanical construction industry are:

• AECOM
• NTT Facilities
• Turner & Townsend
• DPR Construction
• Obayashi Corporation
• DSCO Group
• Jacobs Engineering
• Mace Group
• Kajima Corporation
• Skanska
   

Data Center Mechanical Construction Industry News

• In June 2024, Skanska signed a contract with its existing client to build a data center in Georgia in the U.S. The contract is worth USD 238 million and includes the construction of a 22,700 sq. meter data center, associated site work and underground utilities on an existing campus.
   
• In November 2023, Infosys and Shell partnered to build green data centers. This partnership asset the company to accelerate the adoption of immersion cooling services for data centers. These solutions collectively aim to reduce the carbon footprint, enhance operational efficiency, and support sustainable business practices in the data center industry.
   

The data center mechanical construction market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Data Center

• Small-scale
• Medium-scale
• Large-scale

Market, By Infrastructure

• Cooling systems
• HVAC
  • Computer room air conditioning (CRAC) units
    • Fan arrays
    • Air flow measurement damper
    • DOAS
  • Precision air conditioning (PAC) units
    • Face mounted plenum fan with EC motor
    • MAU
    • ERV
  • Chilled water systems
    • Dampers
    • Condenser fans
  • Ventilation systems
  • Direct expansion (DX) systems
  • Others
• Racks
• Ductwork
• Raised flooring
• Others

Market, By End Use

• BFSI
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia
• South America
  • Brazil
  • Argentina
  • Colombia
  • Chile
• MEA
  • UAE
  • Saudi Arabia
  • South Africa