Data Center Renovation Market

Significant Increase in Data Generation Volume Coupled with Increasing Connected Devices

Move or refurbish is the classic dilemma when it comes to data centers. When technology moves a mile per minute and everything from applications to infrastructure is constantly evolving, a data center must change along with it. It will otherwise find itself outdated, inefficient, or in need of a move. Data center renovation provides IT facilities, and enterprises with a great deal of advantages. A modern data center removes as much maintenance, and administration as possible. With the growing demand for powerful and resilient data centers, end users are focusing more on data center infrastructure. Data center renovation market is thus rising rapidly around the world. The data center offers an exceptional return on investment when compared to other types of funds that achieve more in the single digits. The growth of data center buildings is also heavily impacted by the collaboration between government and businesses aimed at reducing carbon footprints.

The increasing proliferation of connected devices, and accessible internet access, combined with lowering internet service prices, has resulted in an increase in global demand for data storage. This is due to increased demand for big data analytics, and cloud-based services, such as online content such as movies, apps, videos, and social media. The total amount of data created, recorded, copied, and consumed around the world reached 64.2 zettabytes in 2020. Global data generation is expected to exceed 180 zettabytes, by 2025. The growing consumption of data will thereby drive the growth of data center renovation market.

Several sectors are investigating cloud products and discovering the advantages of data center services to satisfy their cloud-related requirements. These advancements are having a direct impact on the rise of the Internet of Things (IoT), leading to the creation of a vast number of data centers around the world. There were more than 10 billion active IoT devices in 2021. However, the number of active IoT devices is expected to exceed 25.4 billion by 2030. As a result, the growing volume of internet data generation is likely to drive demand for storage, creating a slew of profitable prospects for data center renovation market participants in the future years.

Cooling Products Dominant to Cater to Constantly Functioning Data Centers

In the forecast period, the cooling segment will dominate the data center renovation market. The requirement for effective cooling equipment to maintain appropriate temperature and humidity levels across data centers might be attributable to their higher share in data center renovation market. Since the data centers are working 24 hours a day, 365 days a year, IT infrastructure creates large amounts of heat. This requires the maintenance of an optimal atmosphere to guarantee that the IT equipment functions properly. As a result, data centers have cooling systems installed to manage the extra heat generated by CPUs, servers, and other IT equipment. Cooling systems also keep humidity levels stable and protect IT, and electrical components from corrosion. An appropriate working environment guarantees that data centers run efficiently and reduces the risk of downtime and data loss.

North America will Acquire Major Share due to Increase in Amount of Data Generation

North America will dominate the data center renovation market in the forecast period, with a major revenue share. North America's large revenue share can be ascribed to strong expenditures on hyper-scale projects. The increased investment in North American metro infrastructure has created ideal conditions for the establishment of data centers. CyrusOne intended to construct a 340,000 square foot mega data center with a capacity of 100MW in three phases in the Dallas metro area. The ongoing and planned projects related to data centers will drive expansion of data center renovation market in the region. The United States is a mature economy with an established, sophisticated network infrastructure. It also houses major cloud service companies including Amazon.com, Google, Inc., and Facebook. These organisations are investing in the building of mega facilities to increase data storage and processing capacities, hence unlocking new prospects in data center renovation market.

The market for data center renovation in the Asia Pacific is predicted to develop the fastest throughout the forecast period, with China and India contributing considerably to the regional data center construction industry. Continuous investments by cloud service providers and hyper scalers can be linked to the increase. In February 2020, Amazon.com invested USD 339.7 billion in its e-commerce and data center business in India. Growing government initiatives to embrace cloud-based technologies for large-scale data storage are propelling the Asia-Pacific data center construction market forward. The Japan data center renovation market is expected to show significant growth in the region, driven by an increasing rise in the use of digital services such as online banking, mobile wallets, and UPI payments, some organisations are focusing on modernising their existing structures to better meet the needs of their customers. The increased emphasis on improved customer experience would increase the need for solutions such as UPS, networking equipment, and DCIM for updating existing data center facilities, in turn supporting data center renovation market growth.

Global Data Center Renovation Market: Competitive Landscape

Market participants are presenting new products and developing collaborations, alliances, and partnership agreements. In August 2021, NTT Ltd. announced the construction of a new data center campus in Phoenix, Arizona, as a strategic complement to its rapidly expanding portfolio. Along with recently built campuses in Chicago, Illinois, Hillsboro, Oregon, and Santa Clara, California, the new Phoenix campus, set to open in early 2022, will be NTT's fourth U.S. market launch since February 2021, expanding its presence from three to seven campuses. In August 2021, DPR Construction has announced the development of a new data center for Facebook in Mesa, Arizona. With the considerable utilisation of fresh air for cooling, the 960,000 square foot Mesa building will use 60% less water than a normal data center.

A few of the players in the data center renovation market include Vertiv Co., Eaton Corporation, Schneider Electric, Cisco Systems, Inc, APL Data Center, Black & Veatch Holding Company, Panduit Corporation, Dorsalys (Eiffage Énergie Systèmes'), and IBM Corporation.

Global Data Center Renovation Market is Segmented as Below:

By Product

• Cooling
• Power
• IT racks & enclosures
• Networking equipment
• DCIM

By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Russia
  • Rest of Europe
• Asia Pacific
  • Japan
  • South Korea
  • India
  • China
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Elements Included In The Study: Global Data Center Renovation Market:

• Data Center Renovation Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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