As data centers emerge as a new growth driver in the construction industry, the scale of global projects next year is expected to approach $110 billion. In particular, the number of projects planned for ordering is more than six times that of this year.
According to the Overseas Construction Association and global market research firm GlobalData on the 27th, the total scale of data center construction projects underway worldwide through the third quarter of this year amounts to $573 billion.
By region, the Americas account for $261 billion, Asia-Pacific $175 billion, Europe $131 billion, and the Middle East and North Africa $6 billion. The project funding ratio consists of 97% private, 2% public, and 1% PPP (Public-Private Partnership).
In the Americas, the United States accounted for 85% with $23 billion. Following were Mexico ($13.5 billion), Chile ($12.3 billion), and Canada ($5.8 billion).
Currently, the U.S. is planning the $14 billion "Phoenix Metro Data Center." It will be built as a hyperscale data center, which can build or generate large-scale databases and has greater scalability than existing data centers. Demand for data centers in the U.S. is expected to grow by 9% annually until 2030, but supply is still insufficient.
In the Asia-Pacific region, China is leading with $36.7 billion in data center projects, accounting for the largest share (21%). Next are India ($28.6 billion), Malaysia ($21.6 billion), Korea ($18.4 billion), and Japan ($17 billion).
China Communications Construction Company (CCCC) completed an $8.4 billion data center project in Tianjin, and Malaysia is carrying out the $3.2 billion "Kulai Hyperscale Green Data Center" project, the largest in Southeast Asia.
In Europe, the UK ($45.8 billion) accounts for 35% of projects in the region, followed by Germany ($20.5 billion), Spain ($12.5 billion), and Ireland ($10.2 billion). As demand increases in London, Paris, and Amsterdam, GlobalData predicts that global IT companies will invest in hyperscale data centers in countries with abundant renewable energy and reasonable land prices, such as Portugal and Greece.
In the Middle East and North Africa, the United Arab Emirates (UAE) is conducting data center projects worth $1.5 billion, accounting for 20% of the total, and Saudi Arabia is carrying out $1.1 billion worth of projects. Iraq and Israel are estimated at $700 million and $500 million, respectively. Among these, Saudi Arabia is reportedly planning related projects worth $300 million.
Accordingly, the data center market, which formed a scale of $70 billion this year, is expected to exceed $100 billion next year. Large-scale data center projects are planned for ordering in the U.S. and the UK.
An association official said, "Next year, the number of planned data center projects is expected to increase more than sixfold compared to this year, and projects under construction will more than double. Due to the massive increase in energy demand from artificial intelligence (AI), the global data center construction market will steadily grow over the next few years."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
