Deployment of 5G Networks to Propel the Data Center Construction Market - Arizton

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Data Center Construction Market - Global Outlook and Forecast 2021-2026 

The data center construction market is expected to reach USD 55.32 billion in 2026, growing at a CAGR of 4.78%. Due to the growing demand for colocation facilities, the investment by enterprises in data center construction has reduced in recent years. The implementation of 5G commenced in numerous countries across the globe and it will have a major impact on the market, increasing the number of edge data center service providers. In 2020, Arizton identified over 120 facilities built with a power capacity of 0 to 5 MW. Most of these investments are made for phase-wise construction of large facilities with over 10 MW power capacity.

The adoption of liquid immersion cooling is likely to grow as organizations are increasingly deploying artificial intelligence and machine learning workloads. Liquid immersion and direct-to-chip cooling are experiencing over 30% YoY market growth. Medium-sized facilities are expected to account for over USD 16.5 billion by 2026. China, the US, the UK, Canada, the Netherlands, Germany, and Malaysia were the major investors in medium-sized data center market in 2020.  In developing countries, partnerships with local service providers and resellers along with modular data center solution providers will enhance revenues for vendors.

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Data Center Construction Market in Africa - Industry Outlook and Forecast 2020-2025 

The data center construction market in Africa is projected to reach USD 510 million in 2025 growing at a CAGR of 11.67% in the period of 2020-2025. The Africa data center construction market is witnessing significant growth, especially in South Africa, Morocco, Kenya, and Nigeria. The growing internet population has been a strong factor for growth. Government agencies across countries are looking to improve their digital economy. They are involved in a variety of smart city projects that fuel the growth of data centers and edge facilities throughout the region. Most of the investments in Africa are being led by colocation and telecommunication service providers, followed by enterprises and government agencies due to the installation of modular data centers.

South Africa is witnessing major data center development; cities such as Cape Town and Johannesburg are the preferred places for development. The market is witnessing high adoption of cloud-based solutions among enterprises. In terms of electrical infrastructure in general, Schneider Electric, Vertiv, and Huawei have a strong presence in the market. The reduced usage of water by cooling systems will be the major criteria for system selection among providers that require water-based cooling systems in the market. Overall, the competition is expected to reduce costs associated with data center cooling systems in the market

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Nordic Data Center Construction Market - Industry Outlook and Forecast 2020-2025 

The Nordic data center construction market is projected to reach USD 2,258 million in 2025 growing at a CAGR of 1.31% in the period 2019-2025. Recent developments in the market include Finland and Denmark's government announcing a reduction in electricity tax, which will increase investments in those countries. The growth in data, increased use of social media, high penetration of smart devices, and connected reality will be major drivers for the growth of the data centers in the Nordics. Norway attracted investments of USD 512 million, adding 0.51 million square feet of data center space and 80 MW of power capacity in 2019.

Submarine cable projects will be a major boost for data center development in the Nordic countries. The adoption of high-capacity systems in the region will provide higher revenue opportunities for market vendors. The demand for data center space will grow among sectors such as BFSI, healthcare, technology, transportation, and heavy industries.  In terms of colocation providers, Bulk Infrastructure invested in its DK01 Campus along with investments from DigiPlex, GlobalConnect, and Interxion are investing in the data center market in Denmark. In Norway, Microsoft and Equinor contributed to the investment along with Green Mountain with investments in facilities such as DC2 Telemark and Telemark & Stavanger Data Center. Partnerships with local utility firms will provide significant savings in power costs for data center operators.

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Middle East and Africa Data Center Construction Market - Industry Outlook and Forecast 2020-2025 

The Middle East and Africa data center market is projected to grow to USD 1314 million by 2025, growing at a CAGR of 5.08% in 2019-2025. The MEA market witnessed investments in around 21 data center projects, including both greenfield and modular data center projects. The rack power density is expected to grow from 4−6 kW in 2019 to 10−12 kW by 2025. South Africa continues to dominate the Africa data center construction market. In 2019, Morocco witnessed higher investments followed by Egypt, Kenya, and Nigeria. Colocation and telecommunication service providers are major investors in Africa, followed by enterprises and governments agencies. 

The adoption of metered rack PDUs is expected to make significant contributions until 2024. However, the growing rack power density and the need for monitoring and increasing automation solutions will lead to the adoption of switched, monitored, and managed PDUs. Gulf Data Hub, Khazna, Equinix, Batelco, Turkcell, Etisalat, icolo.io, Internet Technologies Angola (ITA), Inwi, Orange, and others will continue to invest in new colocation facilities across the region.

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Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers innovative research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.  

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals, and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.  

Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.  

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