The explosive growth of the digital world—including connected IoT devices—is creating the need for more sophisticated data centers across the globe, according to the report, “Data Center Construction Market - Global Outlook and Forecast 2018–2023.”
“Leading business organizations are embracing innovative technologies such as big data, cloud services and IoT to stay competitive in the global market and boost revenues,” the authors write. “Such changes are boosting internet traffic and propelling the need for better and modern facilities.”
Revenues from the data center construction are expected to increase at a compound annual growth rate of more than 6 percent by 2023, with the most expansion to occur in the Asia-Pacific and Middle East markets, according to the report. Coming onto the scene are “hyperscale data centers” by such tech giants as Facebook, Google, Amazon Web Services and Microsoft. Such centers feature networking infrastructure with flexible memory, networking and storage capabilities that provide more scalability to meet the changing needs of the business.
Collocation providers also are investing heavily in the construction of new facilities, augmenting their investments in submarine fiber cable to improve their rural and urban broadband connectivity.
The data center market is being significantly upgraded with the construction of new facilities that have the highest Tier 3 and 4 standards for reliability and redundancy. Such data centers are being built in Brazil, Sweden, Norway, Finland, Ireland, Denmark, Canada, India, Japan and South Korea, creating a boon for prominent operators in the global market.
“The increasing investments towards innovations to enhance the operational efficiency of the facility, reduce power consumption and decrease carbon emission will transform the global market by 2023,” the authors write.
Driving this transformation is the development of modern rack level uninterruptible power supply (UPS) systems with battery monitoring controls to predict the possibility of failure and maintenance needs, according to the report. UPS systems are already dominating the majority of the market over generators, transfer switches and switchgear, rack PDU, and other electrical infrastructure, with revenues from the implementation of UPS systems expected to grow at a CAGR of more than 6 percent by 2023.
“The adoption of lithium-ion UPS systems facilities operators in developed countries to reduce the OPEX through reduced maintenance cost will create new avenues for leading vendors in the market,” the authors write. “The continuous innovations in UPS solutions and growing demand for modern solutions in emerging nations will attribute to the growth of this segment.”
The report also lists the major vendors in the data center construction market, including infrastructure providers ABB, Eaton, Rittal, Schneider Electric, STULZ, Vertiv, Caterpillar and Cummins.