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Released February 10, 2020 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Across North America, data centers are being built at a dizzying pace, and even-faster growth is expected in the near future as the strategic trends driving businesses -- including supply-chain management, digitization, artificial intelligence, data security and corporate resilience -- are increasing the importance of data centers.
"Nearly every trend driving businesses has resulted in the construction of new data centers, and we expect project activity in that sector to grow even faster in the next few years," said David Pickering, Industrial Info's vice president of research for the Industrial Manufacturing Industry. "As more and more businesses create value with data, there is ever-greater demand for secure offsite data storage."
As supply chains globalize, companies need data centers that can be accessed by partners around the world, Pickering said. While millions of businesses have digitized their processes, millions more continue to rely on pen-and-paper calculations or spreadsheets. Rising concerns over cyber security and data resilience in the aftermath of disasters or disruptions also are pushing companies to entrust more of their data in third-party offsite locations, he added.
The burgeoning growth of data centers is shown in project activity tracked by Industrial Info. In the two-year period between January 2014 and December 2015, only eight data center projects valued at about $1.75 billion were completed across North America. For the 2016-2017 period, those numbers jumped to 18 completed projects valued at $3.79 billion. And in the most recent two-year period, 2018-2019, 54 data center projects were completed across North America, with a collective value of $7.83 billion.
Looking forward, developers plan to start construction on 170 data center projects across North America valued at about $29 billion for 2020 through 2021. Looking out to the next two-year period after that, 2022-2023, 55 projects are scheduled to begin turning dirt, with collective value of about $10.2 billion.
The states with the largest dollar value of data centers being completed or planned include Virginia, Texas, California and Georgia, Pickering said. Projects have a high need for onsite power to cool the data center server racks.
"In recent decades, Corporate America gradually has come to accept that their operations could become more efficient using trusted external suppliers instead of in-sourcing everything," Pickering said. "Now, that realization is spreading to data: Firms increasingly are seeing that firms that specialize in data management and data security are better guardians of a company's data than the company itself."
Over the period of 2018 through 2019, Virginia, Nevada, Texas and New Mexico were the states with the largest dollar value of data center projects completed, according to Industrial Info's Global Market Intelligence platform.
Click on the image at right to see a list of the 10 U.S. states with the greatest dollar value of data center project completions between January 2018 and December 2019.
In the January 2020-December 2021 period, Virginia, Texas, Georgia and California top the list for states with data center projects scheduled to start construction.
Click on the image at right to see a list of the 10 U.S. states with the greatest dollar value of data center construction projects scheduled to break ground between January 2020 and December 2021.
Looking further into the future, Arizona, Virginia, California and Georgia are the hottest states where data centers are scheduled to be built for 2022 through 2023.
Click on the image at right to see a list of the 10 North American states or provinces with the greatest dollar value of data center projects scheduled to begin construction between January 2022 and December 2023.
"We don't expect all of these projects to begin construction according to their current schedules," Pickering said. "Some projects will get delayed, but given the growing demand, we expect few will be cancelled outright."
"Increased investment is data centers is a secular trend, affecting businesses in all industries around the world," Pickering continued. "Even smaller businesses that supply goods or services to larger businesses are being required to have data security and data recovery protocols in place as a condition of doing business with larger firms. That, too, is driving the need for increased data storage."
"It is not too much to say we are in the middle of a global data decade," Pickering said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
"Nearly every trend driving businesses has resulted in the construction of new data centers, and we expect project activity in that sector to grow even faster in the next few years," said David Pickering, Industrial Info's vice president of research for the Industrial Manufacturing Industry. "As more and more businesses create value with data, there is ever-greater demand for secure offsite data storage."
As supply chains globalize, companies need data centers that can be accessed by partners around the world, Pickering said. While millions of businesses have digitized their processes, millions more continue to rely on pen-and-paper calculations or spreadsheets. Rising concerns over cyber security and data resilience in the aftermath of disasters or disruptions also are pushing companies to entrust more of their data in third-party offsite locations, he added.
The burgeoning growth of data centers is shown in project activity tracked by Industrial Info. In the two-year period between January 2014 and December 2015, only eight data center projects valued at about $1.75 billion were completed across North America. For the 2016-2017 period, those numbers jumped to 18 completed projects valued at $3.79 billion. And in the most recent two-year period, 2018-2019, 54 data center projects were completed across North America, with a collective value of $7.83 billion.
Looking forward, developers plan to start construction on 170 data center projects across North America valued at about $29 billion for 2020 through 2021. Looking out to the next two-year period after that, 2022-2023, 55 projects are scheduled to begin turning dirt, with collective value of about $10.2 billion.
The states with the largest dollar value of data centers being completed or planned include Virginia, Texas, California and Georgia, Pickering said. Projects have a high need for onsite power to cool the data center server racks.
"In recent decades, Corporate America gradually has come to accept that their operations could become more efficient using trusted external suppliers instead of in-sourcing everything," Pickering said. "Now, that realization is spreading to data: Firms increasingly are seeing that firms that specialize in data management and data security are better guardians of a company's data than the company itself."
Over the period of 2018 through 2019, Virginia, Nevada, Texas and New Mexico were the states with the largest dollar value of data center projects completed, according to Industrial Info's Global Market Intelligence platform.
In the January 2020-December 2021 period, Virginia, Texas, Georgia and California top the list for states with data center projects scheduled to start construction.
Looking further into the future, Arizona, Virginia, California and Georgia are the hottest states where data centers are scheduled to be built for 2022 through 2023.
"We don't expect all of these projects to begin construction according to their current schedules," Pickering said. "Some projects will get delayed, but given the growing demand, we expect few will be cancelled outright."
"Increased investment is data centers is a secular trend, affecting businesses in all industries around the world," Pickering continued. "Even smaller businesses that supply goods or services to larger businesses are being required to have data security and data recovery protocols in place as a condition of doing business with larger firms. That, too, is driving the need for increased data storage."
"It is not too much to say we are in the middle of a global data decade," Pickering said.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
