A new published report is titled “A Strategic Assessment of the Worldwide Data Center Construction Market – Forecast Till 2021.” The report estimates the market to record a total revenue generation of approximately US$54 billion by 2021, growing at a CAGR of approximately 5 percent over the period from 2016 to 2021.
“One key factor that is contributing towards the growth of the data center construction market is the continual increasing demand for data storage,” notes the report’s executive summary. “A number of prominent organizations around the world are forced to add at least ten racks on a daily basis to their current data center storage capacity to accommodate the volume of data that needs to be stored. As such, with such a high volume of data, it is quite evident how absolutely necessary it is to have more data centers constructed as early as possible.
Data center market in North America is near saturation: The North American market was one of the early adopters of data centers and as such, has seen a large volume of consolidation of data centers over the last few years. In this respect, the number of new projects in the region are comparatively lesser than the other regions. However, the number of upgradations in the current data centers in the region is continuously increasing year over year along with renovation projects. The market is expected to record a total revenue generation of approximately US$13 billion by 2021.
Cost of data center construction expected to decline significantly by 2021: The average cost of construction of data center per square feet will decline significantly by 2021 across all tier markets. One of the primary reasons for this significant decline is technological innovation, which lead to the construction of cost effective solutions. For instance, the cost of ownership of free cooling system is 50-60% cost effective vis-à-vis the traditional water cooling solution. Moreover, in last five years, the per square feet electrical cost of construction has reduced almost 50% for Tier 3&4 and is expected to reduce another 20-30% in next 3-4 years.