United States Data Center Market Report 2019-2024 - Market to Exceed Revenues of $69 Billion by 2024

/EIN News/ -- Dublin, Sept. 19, 2019 (GLOBE NEWSWIRE) -- The "Data Center Market in US - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.

The US data center market is expected to reach revenues of over $69 billion by 2024.

The growing popularity of Internet of Things (IoT) is a major driver for the growth of the US data center market. The country is one of the leading markets for IoT technologies, including IoT endpoints, IoT communication, IoT security, IoT data and analytics, and IoT artificial intelligence.

The increasing usage of cloud computing services and applications continues to grow rapidly in the US, thereby leading to the establishment of large hyperscale cloud-based data centers. The growing demand for cloud services in the US is likely to increase the construction of cloud-based data centers.

Amazon Web Services (AWS), Google, and Microsoft are increasing their investments in data center construction. In 2019, Northern Virginia, Oklahoma, Ohio, and Oregon have appeared as the major construction destinations for new cloud-based datacenters. The SaaS market in the US is expected to grow at a CAGR of over 15% during the forecast period 20182024.

United States Data Center Market Segmentation

This research report includes detailed market segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, facility type, general construction, tier standards, and geography. The hyperscale data center market is the largest segment in the US data center market by facilities. Facebook, Google, Digital Realty, Quality Technology Services, and Switch are the major investors in the construction of hyperscale data centers.

The growth in submarine cable projects and increased investments are expected to augment the hyperscale data center segment. Digital Realty, Cologix, COPT Data Center, Raging Wire Data Center, and Sabey Data Center are the major investors in the medium-sized data centers market in the US. The Southeast US has the highest number of medium data center facilities due to the maximum investments from investors.

In 2018, the US server market and storage witnessed significant growth due to the rise in the construction of data centers. The US is also a hub of hyperscale service providers. Therefore, the server market is likely to witness growth customized and high-performance servers from ODM vendors. The networking infrastructure market in the US is witnessing growth due to the increase in the data center traffic. In 2018, the 100GbE switches experienced adoption among several data centers in the US. The emergence of 200/400 GbE ports in data centers has also compelled vendors to update their product portfolio with 200/400 GbE ports.

The lithium-ion UPS systems market in the US is expected to grow among service operators as they help to reduce the OPEX. Also, the market is receiving a significant healthy boost due to the adoption of nickel-zinc UPS systems. The increased construction of large and hyperscale data center facilities is expected to increase the demand for generators in the US market during the forecast period. The transfer switches and switchgear market in the US is expected to grow due to the increased construction of data centers in the region. The increased innovations and demand for rack PDUs are likely to increase in the US data center market.

Data centers in the South Eastern and Western US are adopting air- and water-cooled chillers with the economizer mode to facilitate partial cooling of the facility using outside air. Further, the use of artificial intelligence in data centers is growing, which has successfully decreased the OPEX up to 40%. The market is likely to adopt innovative cooling solutions, including multipurpose cooling systems and modular infrastructure solutions. With changing technologies and the increasing use of high-density servers, the rack infrastructure has become a significant element as the need to efficiently host servers, handle wires, and enable airflow to ensure optimum data center efficiency is growing.

The market is observing the increased adoption of evaporative coolers that facilitate partial cooling with indoor CRAC units among data centers. The use of traditional air-cooled systems will continue among data centers that operate less than 5 kW per rack mainly among tier II facilities. Water-based cooling adoption was witnessed among multiple facilities in the US and will continue to contribute to market growth.

With the increasing number of Tier III facilities, the demand for 2N redundant CRAC and CRAH units in data centers is growing to facilitate efficient data center operations. The construction of mega and hyperscale facilities is the driving factor for the increasing adoption of both CRAC and CRAH units in the US market. The adoption of cooling towers and dry coolers is high in the data centers that use chilled water for cooling purposes. As several data centers are being constructed to benefit from free cooling methods, particularly in the northern region, the implementation of indirect evaporative cooling technologies is likely to increase. Most data centers in Southeastern and Southwestern US do not require economizers/evaporative cooling solutions.

The US data center market a presence of several principle contractors with a strong base of sub-contractors. There are also many construction contractors trying to enter the data center market due to the high service potential. Infrastructure vendors are also increasingly partnering with major contractors to increase their revenue share in the industry.

The US data center market is witnessing high demand for facilities, which offer high reliability, scalability, and operational flexibility, along with effectiveness and resilience. Hence colocation and managed service suppliers prefer to work with those vendors that follow certifications and comply with sustainability practices issued by leading regulatory bodies, including the Uptime Institute, Leadership in Energy and Environmental Design (LEED), and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) among others. Hence, the increased demand for environment-friendly data centers is expected to increase the share of the data center market in the US by building designs.

The US data center market by Tier III facilities is expected to reach $8.09 billion by 2024. There are around 80 facilities in the US that are Tier III certified. Although, it is expected that several service operators will shift to Tier IV standard facilities due to the increasing growth in rack power density and critical infrastructure operations running inside facilities, there are several facilities, which follow the operational sustainability of Tier III standards, thereby maintaining their market growth.

Currently, the development of Tier IV certified data center facilities is being witnessed in the Western and South-Western part of the US. Hence, the increased construction from hyperscale developers such as Facebook, Apple, Microsoft, and Google, which need fully fault-tolerant data centers is likely to increase the market share of Tier IV data centers.

Key Company Profiled in US Data Center Market

• Cisco
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• IBM
• Lenovo
• NetApp
• Atos

Key Construction Contractors in US Data Center Market

• AECOM
• Corgan
• DPR Construction
• Holder Construction
• Jacobs Engineering Group
• Syska Hennessy Group
• Turner Construction

Key Infrastructure Providers in US Data Center Market

• ABB
• Airedale Air Conditioning
• Eaton
• Schneider Electric
• STULZ
• Vertiv

Key Data Center Investors in US Data Center Market

• Apple
• COPT Data Center Solutions
• CyrusOne
• Digital Realty
• Equinix
• Facebook
• Google
• Microsoft
• Stream Data Center
• Vantage Data Centre

Other Prominent IT Infrastructure Provider

• AccelStor
• DataDirect Networks (DDN)
• Fujitsu
• Hitachi Vantara
• Huawei
• Infortrend Technology
• Inspur Group
• Intel
• Kaminario
• Micron
• MiTAC Holdings
• Nimbus Data
• Pivot3
• QNAP Systems
• Quanta Cloud Technology
• Samsung
• Seagate Technology
• SK Hynix (SK Group)
• Super Micro Computer
• Synology
• Toshiba
• Violin Systems
• Western Digita
• Wiwynn (Wistron)

Prominent Construction Contractors

• Balfour Beatty US
• BlueScope Construction
• Clune Construction
• Fluor Corporation
• Fortis Construction
• Gensler
• Gilbane Building Co.
• HDR
• Hensel Phelps
• HITT Contracting
• Hoffman Construction
• JE Dunn Construction
• Morrison Hershfield
• Mortenson Construction
• Rogers-O'Brien Construction
• Structure Tone
• Walsh Group
• Whiting-Turner Contracting

Prominent Support Infrastructure Providers

• Altima Technologies (NETZOOM)
• Asetek
• Bloom Energy
• Caterpillar
• Cormant
• Cummins
• Cyber Power Systems
• Data Aire
• Delta Group
• FNT
• Generac Power System
• Green Revolution Cooling
• HighPower
• HiTec Power Protection
• Legrand
• Nlyte Software
• Nortek Humidity (Condair Group)
• Mitsubishi Electric Corporation
• MTU On-Site Energy (Rolls-Royce Power Systems AG)
• Rittal
• Trane (Ingersoll Rand)
• Tripp Lite

Prominent Data Center Investors

• CoreSite Realty Corp
• DataBank
• DC Blox
• EdgeConnex
• H5 Data Centers
• Quality Technology Services
• RagingWire Data Center (NTT)
• Sabey Data Center
• TierPoint
• T5 Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/6h0gh5

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