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The global data center construction market will grow from $14.59bn in 2014 to $22.73bn by 2019, at a Compound Annual Growth Rate (CAGR) of 9.3% according to a new report from research firm Research and Markets.

The report says the market for data center construction is thriving and many companies have begun to transform traditional data centers into mega data centers while many others are planning to build new monster sites in the coming years. The data center construction market is expected to show significant growth rate in the coming period.

Data traffic rapidly increasing
Rapidly-increasing data traffic is driving the demand for data storage, which is resulting in continuous expansion of the global datacenter market. In order to accommodate this enormous amount of data, companies are forced to operate a number of data centers, which may or may not be located in the same location. The cost associated with operating these data  centers is also high, resulting in reductions in profit.

It is difficult for organizations to manage a number of data centers in different locations. Many companies such as Facebook, Google, Amazon, Microsoft, Apple, and eBay prefer to operate a few gigantic datacenters rather than several smaller data centers at multiple locations. These giant structures also offer local benefits such as low energy prices for large-scale consumption, tax and climatic benefits.

Huge opportunities in Asia Pacific
The Information Technology (IT) vertical market sector is expected to hold the largest market share of the total data center construction market throughout the forecast period of 2014 to 2019 followed by the Banking, Financial Services and Insurance (BFSI) vertical. There are huge business opportunities in the Asia-Pacific region, due to presence of emerging economies in this region, the report promises. However, there is growing trend of providing colocation facilities by vendors in this market.

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