• In May 2023, Data4 Group, a prominent player in data center operations and investments across Europe, unveiled plans to construct a new data center campus on the former Nokia site in Nosée, Essonne, France. This ambitious project, with an anticipated investment of approximately EUR 1 billion by 2030, aims to rejuvenate 22 hectares of industrial and office space while reinforcing the Group's presence in the Paris region.

• In April 2023, Microsoft announced the inauguration of its latest trusted cloud center in Poland, marking a significant milestone as the first of its kind in Central and Eastern Europe. The Microsoft Poland cloud region encompasses three physical locations in the vicinity of Warsaw, each housing one or multiple data centers. This initiative ensures data storage within the country, adhering to the highest standards of security, privacy, and regulatory compliance.

• In January 2023, TSL secured an order as part of a $2 billion investment by US real estate investor Vantage for constructing data centers across Europe. The project involves establishing a data center in Offenbach, with an initial construction phase targeting a capacity of 16 MW for the Vantage Data Centre. The broader campus plan encompasses three multistory data centers, with a combined maximum IT capacity of 55 MW rated power, spanning an overall area of 60,000 m2.

In this report, the Data Center Mechanical Construction Market has been segmented by Infrastructure, Tier Type, Size of Data Center, End-User and Geography.

Data Center Mechanical Construction Market, By Infrastructure

The Data Center Mechanical Construction Market has been segmented by Infrastructure into Electrical Infrastructure, Mechanical Infrastructure, and Others.

Electrical Infrastructure
The electrical infrastructure segment dominates the data center mechanical construction market, contributing to over 40% of the overall share. This includes power distribution units, backup generators, UPS systems, and switchgear essential for ensuring uninterrupted operations in data centers.

Mechanical Infrastructure
The mechanical infrastructure segment accounts for approximately 35% of the market, encompassing critical systems like cooling units, HVAC systems, and ventilation setups. With growing demand for energy-efficient cooling solutions, this segment is gaining significant momentum.

Others
The others category includes supporting infrastructure such as racks, containment systems, and auxiliary fittings. Holding a market share of around 25%, these elements play a vital role in optimizing space utilization and airflow in modern data centers.

Data Center Mechanical Construction Market, By Tier Type

The Data Center Mechanical Construction Market has been segmented by Tier Type into Tier-I & Tier-II, Tier-III, and Tier-IV.

Tier-I & Tier-II
Tier-I & Tier-II data centers represent the most basic level of redundancy and reliability, jointly accounting for around 20% of the market. These facilities are often adopted by small to mid-sized enterprises due to their lower cost and simpler infrastructure requirements.

Tier-III
Tier-III data centers dominate the market with a share of over 45%, offering high availability and maintainability through multiple power and cooling paths. They are widely preferred by large-scale enterprises and colocation providers seeking balanced cost and uptime.

Tier-IV
Tier-IV data centers, known for their fault tolerance and fully redundant systems, contribute to approximately 35% of the market. These facilities are designed for mission-critical applications in industries requiring maximum uptime and resilience.

Data Center Mechanical Construction Market, By Size of Data Center

The Data Center Mechanical Construction Market has been segmented by Size of Data Center into Small & Medium-scale Data Center, and Large-scale Data Center.

Small & Medium-scale Data Center
Small & medium-scale data centers hold a market share of nearly 40%, catering primarily to regional enterprises, startups, and organizations with moderate IT loads. These facilities focus on scalable designs and cost-effective cooling to support evolving operational needs.

Large-scale Data Center
Large-scale data centers dominate the segment with over 60% of the market, driven by demand from cloud service providers, hyperscalers, and global corporations. Their construction involves advanced mechanical infrastructure, redundancy, and efficiency-focused systems.

Data Center Mechanical Construction Market, By End-User

The Data Center Mechanical Construction Market has been segmented by End-User into Banking, Financial Services & Insurance, IT & Telecommunications, Government & Defense, Healthcare, and Others.

Banking, Financial Services & Insurance
The BFSI sector contributes to over 25% of the market, driven by the need for secure, reliable, and high-availability infrastructure. These facilities support continuous financial transactions, data integrity, and compliance with regulatory standards.

IT & Telecommunications
Accounting for approximately 35% of the market, IT & telecom companies are major adopters of data center mechanical construction, requiring scalable, redundant, and high-performance environments to manage massive data and connectivity loads.

Government & Defense
Government & defense entities hold around 15% market share, prioritizing data protection, surveillance systems, and mission-critical operations. Mechanical systems in these data centers are designed for security and operational continuity.

Healthcare
The healthcare segment represents nearly 10% of the market, driven by the growing reliance on digital records, telemedicine, and real-time data access. Mechanical infrastructure here emphasizes resilient cooling and contamination control.

Others
Other sectors, including education, retail, and manufacturing, contribute the remaining 15%. These organizations are adopting data centers to support digital transformation and automation initiatives with efficient mechanical setups.

Data Center Mechanical Construction Market, By Geography

In this report, the Data Center Mechanical Construction Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Data Center Mechanical Construction Market Share (%), by Geographical Region

North America
North America leads the market with over 35% share, fueled by high demand from hyperscale data centers, robust cloud infrastructure, and major investments in advanced cooling technologies. The U.S. dominates the region due to its tech-driven economy.

Europe
Europe holds around 25% of the market, with countries like Germany, the UK, and the Netherlands investing in green data centers and energy-efficient mechanical systems. The region benefits from strong regulatory support and data protection mandates.

Asia Pacific
Asia Pacific is the fastest-growing region, accounting for nearly 20% of the market, driven by the rapid expansion of digital services, 5G adoption, and increasing cloud penetration in countries like China, India, and Japan.

Middle East and Africa
This region holds a modest 10% share, with growth propelled by smart city projects, government digitization efforts, and rising demand for localized data storage. Key developments are seen in the UAE and South Africa.

Latin America
Latin America contributes around 10% to the market, with Brazil and Mexico leading the push for data center modernization. Investments focus on improving cooling infrastructure and addressing energy efficiency challenges.

This report provides an in depth analysis of various factors that impact the dynamics of Global Data Center Mechanical Construction Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Government Digital Initiatives
• Rise of Adoption of Hyperscale Datacenters
• Growing Demand for SMAC Applications

• Edge Computing Reshaping Data Centers - Edge computing reshaping data centers is a major driver of growth in the global data center mechanical construction market. As demand for low-latency processing and real-time data analytics increases, organizations are moving computing capabilities closer to the data source through edge data centers. This shift requires the construction of smaller, decentralized facilities equipped with advanced mechanical systems such as cooling, ventilation, and power distribution that can operate efficiently in remote or urban edge environments.

  Unlike traditional centralized data centers, edge facilities demand compact, modular, and highly efficient mechanical designs tailored to limited space and specific environmental conditions. This trend is driving innovation in prefabricated mechanical components, liquid cooling systems, and energy-efficient infrastructure. As edge computing continues to support applications like IoT, autonomous vehicles, and smart cities, the need for agile, high-performance mechanical construction solutions is expected to expand rapidly, reshaping the global data center development landscape.

Restraints

• Space constraints in urban areas
• Environmental & Workforce-related Challenges

• Limited availability of skilled labor - Limited availability of skilled labor is a critical restraint in the global data center mechanical construction market. As the demand for new and upgraded data centers surges, there is a growing shortage of qualified professionals capable of handling complex mechanical installations such as cooling systems, HVAC integration, and high-efficiency power infrastructure. These roles require a deep understanding of data center standards, sustainability protocols, and precision engineering—skills that are not readily available in many regions, especially in emerging markets.

  This talent gap often results in project delays, cost overruns, and compromised quality standards, posing a challenge to developers and operators aiming to meet aggressive deployment timelines. Additionally, competition for skilled technicians drives up labor costs, reducing the profitability of large-scale construction projects. To mitigate this issue, stakeholders must invest in training programs, cross-disciplinary collaboration, and workforce development initiatives to ensure a reliable supply of skilled labor tailored to the evolving needs of data center mechanical construction.

Opportunities

• Accelerated hyperscale infrastructure growth
• Renewable energy adoption

• Growing demand for cloud computing and edge computing - Growing demand for cloud computing and edge computing is a powerful driver for the global data center mechanical construction market. As enterprises accelerate digital transformation, the need for scalable and low-latency infrastructure has surged, leading to a rapid expansion of cloud-based services and decentralized edge networks. This shift is fueling the construction of hyperscale and edge data centers that require advanced mechanical systems for power, cooling, and environmental control to maintain efficiency and uptime.

  Cloud service providers and enterprises are increasingly investing in geographically distributed facilities to support real-time data processing, AI, IoT, and 5G applications. These facilities demand specialized mechanical designs tailored to high-density computing loads and energy efficiency standards. As both cloud and edge computing architectures evolve, the demand for innovative and robust mechanical construction solutions will continue to grow, driving long-term market expansion and technological advancement.

Key players in Global Data Center Mechanical Construction Market include;

• IBM Corporation
• SAS Institute Inc.
• DPR Construction Inc.
• Fortis Construction Inc.
• Turner Construction Co.
• Data4 Group
• Microsoft
• TSL
• Vantage Data Centers
• K2

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis