Remote working, IoT is expected to fuel the data center market

Diving letter:

  • The data center market was valued at $ 8.4 billion in 2020 and could grow to $ 13.9 billion by 2026, according to a market research report Festivals Accountability Information Management (AIM).
  • Remote working, virtual health care, and the Internet of Things (IoT) continue to drive interest in the industry as these growing trends drive demand for more data centers.
  • Most of the data centers under construction are located in company offices. This category includes data centers built for large tech companies like Facebook, Amazon, and Google. Data centers for universities and colleges form the second most active sector.

Dive Insight:

Although the data center industry was already booming, the COVID-19 pandemic only exacerbated the demand for data centers. Only three in ten employees now work in offices in ten major US cities, so Data from Kastle Systems. This shift to remote work has increased the demand for data centers.

But that’s not the only trend in this booming industry.

The virtual health industry is expected to continue to grow, which puts more emphasis on building data centers, according to the AIM report. As more and more IoT devices use the internet to connect and share data, more data centers will be needed to transfer the information.

For example, the AIM report points to new ground technologies. These smart floors are particularly practical in senior citizens’ homes and are equipped with sensors that call for help when a resident fallswhich requires a data center to relay the information.

Of the over 500,000 active construction projects taking place in the United States and Canada at any given time, 11,198 of them are in data centers. Of these, approx. 297 are individual projects, the rest are construction within a company building, according to AIM report.

Nine states – Virginia, Texas, California, Georgia, Arizona, Illinois, Tennessee, Ohio, and Colorado contain more than half of the standalone data center projects, while the other 49% of the active projects are spread across the other states or Canadian provinces.

Although hotspots like Ashburn, Virginia – known as Data Center Alley – are host to multiple projects, most of the money that goes into the sector can be traced back to a handful of large projects.

For example, only two projects in Virginia represent over $ 3.3 billion, half of the total value of the state’s data center projects. In Texas, the EdgeCore data center project in Richardson, valued at approximately $ 1 billion, represents over 50% of the value of all 28 active projects in the state.

Most of the 297 standalone projects are in office locations and serve large technology companies such as Facebook, Amazon and Google. Universities and colleges are the second most active sector, followed by government.

Optional labeling

Sebastian Obando / Construction Dive, data from Accountability Information Management, Inc.

Although COVID-19 increased demand for data centers, the pandemic caused a. some glitches in a number of these projects Turner & Townsend Report 2020. Around 79% of respondents believe that COVID-19 causes productivity losses and higher operating costs on data center construction sites.

Confidence in the sector remains high, however, as 71% of respondents think the industry is recession-proof, up from 50% last year, the report said.

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