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Beige Market Intelligence Predicts Data Center Construction Spending Will Increase by Average $2 Billion Till 2016

AECOM, DPR Construction, Holder Construction, Jacobs Engineering, and Turner who will have the lion share?

Chicago, IL, April 21, 2016 --( On average, the data center construction market will globally add $2 billion every year till 2016. The growth is good but the question is who will take the lion share of this $2 billion every year or cumulative $12 billion by 2021.

There is intense competition amongst construction vendors in the global data center construction market. Many data centers are currently being operated by enterprises, including CSPs, public and private sectors organization worldwide. The count is expected to increase during the forecast period due to the growth of data and data center emerging as a backbone of the business. There will be a rapid growth in collocation facilities in the near future as well. Several stakeholders of data center such as architecture providers, engineering service providers, and construction firms are involved in the race for attaining projects. Most of the vendors are looking to construct data centers that can support varying computing and storage demands for future.

Few vendors have been in a long time partnership with a particular enterprise, for its data center construction. Vendors with expertise in building green data centers are likely to be preferred. Some of the key vendors operating in different geographies are AECOM, DPR Construction, Holder Construction Engineering, Jacobs Engineering, and Turner Construction.

Coming back to who can be the winner, the answer is the company which has or can immediately build its solid presence in South-East Asia, Latin America, Nordic region, GCC, and Middle-East Africa. Europe and North America will not contribute much to the growth of data center construction market. In fact, the North America will have negative growth. The Gold pot is in Nordic and South-east Asia. If the vendors want to capture the larger pie of growth, then they should focus on these regions.

Data Center construction spending in Nordic will double during next 5 years. South-east Asia will spend almost $5 billion by 2021. GCC and Middle East will also spend more than 100 percent what they are currently doing.

Demand for Tier 3 and 4 data center in Nordic, GCC, Middle-east Africa, and South-east Asia will attract more spending. The spending in all these regions will be across electrical, mechanical, and general construction.

Analysing the geographical presence of the key vendors, Jacob Engineering seems to be in a better position – in terms of presence in the high growth regions. Having said that, other vendors like AECOM, DPR, Holder Construction, Turner are not far away. In fact, Beige Market Intelligence predicts that the wave can turn anywhere. The key would be to move first and get the local advantage.
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Beige Market Intelligence
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