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Leading tech firms have announced a series of layoffs over the last few months as they adjust to persistent economic volatility. Amazon, Google, and Meta have made strategic decisions to reduce the workforce to better manage the macroeconomic headwinds in 2023. Even though the firms have undertaken cost-cutting measures, these firms have continued to make strategic investments in the data center space.
These facilities are in addition to the firm’s existing data centers in Ohio, which include a significant US$600 million facility located in New Albany. The tech giant broke ground on the New Albany in November 2019 and is now completed. Back in 2019, the firm choose New Albany due to its energy infrastructure, available workforce, and developable land. Notably, a growing number of data center developers are showing interest to develop new facilities in Columbus, and nearby cities such as New Albany, Delaware, and others.
With aggressive tax incentives offered by the state government and the fact that Columbus is centrally located in the middle of already developed data center markets such as Chicago, Atlanta, and Northern Virginia, more developers are expected to announce new data center projects in the region over the next five years.
In H1 2023, several new data center projects have been announced by tech giants as well as co-location data center providers.
These tech giants, like Amazon and Google, have both announced a series of layoffs to cut costs owing to pressures due to macroeconomic challenges. The inflationary environment has also impacted their investment in the development of new data center facilities. However, with the growing digitalization among SMEs and the development of AI capabilities, data center investment will remain at the core of their spending over the next five years. Consequently, the investment in the space will, therefore, keep aiding the growth of the commercial construction market in the United States from the short to medium-term perspective.
Alongside data center construction activities, new manufacturing plants and the expansion of retail stores will also aid the sector growth in 2023. In the United States, several firms have commenced ground preparation and construction work, anticipating incentives from the CHIPS Act.
In 2023, global retailers have also announced their plans to expand their presence in the United States market by opening new stores. Aldi, for instance, announced that the firm plans to open 120 new stores in 2023. In Q1 2023, the firm added 35 stores in the United States. In addition to new store launches, the firm is also remodeling the existing stores to offer convenient shopping experiences to its shoppers.
Ikea, in April 2023, also announced a US$2.2 billion investment plan over the next three years in the United States. The furniture retailer is planning to use the investment for opening more stores across the country. The growing investment, even amid the rising inflationary environment, shows that retailers are anticipating a high-growth period once inflation cools down in the North American region.
Going forward, ConsTrack360 expects more retailers, manufacturers, and tech giants to announce such projects. All of these commercial and industrial projects will, therefore, keep aiding the growth of the overall construction market in the United States over the next three to four years.
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