Data Center Construction Market to Grow

Global data center construction market continues to witness a slew of mergers and acquisitions, followed by joint ventures. The growing demand for data center services across industries has led service providers to collaborate, participate, and sign several mergers and acquisitions to expand their portfolios, expand their reach, and increase their penetration in the market. M&A activities have been followed up with joint ventures, which have acted as a catalyst for market growth. Although the market witnessed several mergers and acquisitions in 2020, the most remarkable ones are the acquisition of Digital Realty merger with Interxion in March 2020, Hypertec by Vantage Data Center in Nov 2020 in Canada. The APAC region witnessed a few high-profile mergers, however, the data center market in India observed two majors acquisitions in 2020 ¬– Equinix’s acquisition of GPX Global Systems in Aug 2020 and Carlyle Group’s merger with Airtel Nxtra Data Center (25%).

Global data center construction market research report includes a detailed segmentation by facility type, electrical infrastructure, mechanical infrastructure, cooling technique, general construction, tier standards, geography. Currently, the US, Germany, Sweden, Australia, Canada, India, and France are witnessing the highest development and expansion of small data center projects, which fall under the capacity of less than 5 MW. Europe witnessed the development of multiple small projects, accounting for over $2 billion in investments. In 2020, the US accounted for around 80% of data center projects with an estimated investment of around $700 million in the Americas data center market. Germany, France, and Switzerland are the major contributors with more than $700 million in investments. The APAC market witnessed the construction of several small projects, accounting for over $2 billion investments. In terms of electrical infrastructure, several data center facilities in North America have adopted 2N redundant UPS systems. Hyperscale operators are deploying end-of-rack UPS solutions supporting up to six racks. Generators are still being deployed in N+1 redundant configuration. Most facilities have deployed over 1,000 kVA UPS systems and >2 MW generators. However, the increasing procurement of renewable energy is likely to decrease the need for generator systems. The UK, Germany, the Netherlands, France, and Ireland are witnessing high investments in power infrastructure. Several facilities have adopted flexible designs to facilitate the installation of dual power feed, 2N redundant UPS and PDU systems, and N+1 generator. The Western Europe market share of metered and monitored rack PDU solutions has observed a remarkable increase. Hyperscale service providers in the Nordic region are procuring 48V DC UPS systems. These systems prevent a 5–10% loss in AC to DC conversion. Most facilities in the region are powered by renewable energy with a grid stability of over 95%. This reduces the number of redundant generators in the market.

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