Analysts at TechNavio are closely monitoring The Data Center Construction market in the US, and have noticed significant growth across the country in the past few years. While the anticipated CAGR of 7.61 percent may not seem especially large, any upward trend is particularly noteworthy considering the unmoving state of the demand for data centers in earlier years.
The main reason behind this previous market standstill is that during the boom of digital content in the late ’90s and early 2000s a huge number of data centers sprung up, more or less saturating consumer demand for the coming decade. The average data center only lasts for 7-10 years however, and with many facilities reaching the end of their lifetime period, there is a need for restructuring and reconstruction of these facilities.
Further, many end-users are electing to add advanced upgrades during system renovations, including:
- Cloud Computing Capable Services
- Advanced Computing Facilities
- Data Center Colocation Services
The demand for these new features and services will undoubtedly help to propel the entire market forward. Individual vendors also serve to benefit from this opportunity to provide specialized services to end-users. For instance, many enterprises are now seeking facilities that help to reduce the carbon footprint of the data centers. In response to this need, key players such as DPR Construction, Holder Construction Group and Whiting-Turner Contracting now offer advanced powering and cooling solutions which increase the productivity and energy efficiency of the data centers. The continual release of new features like these will help increase market demand, even amongst end-users who might not yet require a fully reconstructed data center.
Nevertheless, the rapid technological advancements of the data center industry may also lead to a few potential pitfalls for market players. In attempts to combat the growing costs associated with data centers, many businesses are opting for consolidated and containerized facilities. These solutions condense the features of multiple data centers into a centralized single location, thereby drastically lowering the need for data center construction services.
Even with this threat, TechNavio anticipates a slow but steady growth in the next four years. Improved technology is leading end-users to upgrade facilities more frequently, adoption from the health-care and education sectors is rapidly increasing, and as previously mentioned-the limited lifespan of data centers guarantees a constant replenishment of demand for The Data Center Construction market in the US.
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