Bloomberg Technology: Data Center Construction Boom Amid Exciting Times

Aon CFO calls it an exciting time for data center construction, citing booming demand. The CFO notes that data center construction is booming, with many companies investing heavily in the sector. Despite economic challenges, the CFO is optimistic about the future of data centers and the opportunities they present for growth and innovation.

The data center infrastructure market is experiencing significant growth, driven by the explosive increase in data generation, growing adoption of the Internet of Things (IoT), and expansion of cloud computing. According to a comprehensive report from The Insight Partners, the global data center infrastructure market size was valued at USD 4.17 billion in 2024 and is expected to reach USD 10.20 billion by 2031, registering a CAGR of 16.1% from 2025 to 2031 [1].

Aon CFO recently noted that this growth is translating into a booming demand for data center construction. Despite economic challenges, the CFO expressed optimism about the future of data centers and the opportunities they present for growth and innovation. The data center market encompasses physical components such as power and cooling systems, IT hardware, networking equipment, and monitoring tools, which are essential for supporting data center operations [1].

The report highlights several key drivers for this growth. The exponential rise in data generation, fueled by the proliferation of IoT devices, AI applications, and 5G networks, is a primary driver. According to the International Data Corporation (IDC), worldwide data creation is projected to reach 175 zettabytes (ZB) by 2025, up from 33 ZB in 2018 [1]. Additionally, the growing adoption of cloud computing, with giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud reporting combined revenues exceeding $150 billion in 2021, underscores the need for scalable data center solutions [1].

The Internet of Things (IoT) is another significant driver. The number of connected IoT devices is expected to rise from approximately 14.76 billion in November 2023 to ~25.44 billion by 2030, with 75% of total devices in use being IoT by 2030 [1]. This surge in IoT adoption necessitates robust data center infrastructure to meet high bandwidth, lower latency, and real-time analytics demands.

Geographically, North America led the market in 2024, followed by Europe and Asia Pacific. The market is segmented into IT, power, and cooling infrastructure, with the IT segment dominating the market in 2024 [1]. Key players in the market include Schneider Electric, Eaton, Mitsubishi Electric, Legrand, Delta Electronics, DELL, HPE, Cisco, IBM, and ABB [1].

The data center infrastructure market is witnessing a shift towards edge computing, green energy solutions, and modular deployments. These trends reflect a broader trend toward decentralized, resilient, and future-ready data environments. Moreover, the increasing focus on ESG standards and energy efficiency influences design and operational strategies across the industry [1].

In conclusion, the data center infrastructure market is undergoing a transformative phase, driven by relentless growth in data generation, rising cloud adoption, and the proliferation of technologies like IoT, AI, and 5G. Despite economic challenges, the booming demand for data center construction presents significant opportunities for growth and innovation.

References:
[1] https://finance.yahoo.com/news/data-center-infrastructure-market-experiences-133200128.html