Data Center Construction Market Size, Share, and Trends 2025 to 2034

Data Center Construction Market Size and Forecast 2025 to 2034

The global data center construction market size was estimated at USD 240.72 billion in 2024 and is anticipated to reach around USD 491.99 billion by 2034, expanding at a CAGR of 7.41% from 2025 to 2034. The data center constriction market is growing due to growing technological advancements in demand in various industries.

Data Center Construction Market Key Takeaways

• North America dominated the global data center construction market with the largest market share of 42% in 2024.
• Asia Pacific is expected to expand at a solid CAGR of 8.72% during the forecast period. 
• By IT infrastructure, the server segment accounted for the largest market share 55% in 2024.
• By end use, The IT and telecom segment has held a major  market share in 2024.
• By tier type, the tier 3 segment generated the highest market share in 2024.

AI Integration in the Data Center Construction Market

Data center managers have adopted AI in recent years to assist in optimizing day-to-day operations. In particular, operators may optimize data center cooling systems in real-time by using predictive analytics. An amazing quantity of heat is produced in order to supply the power and storage that contemporary computing needs. Providers may save expenses and increase energy efficiency by employing AI to cool hardware more effectively, which can also aid in lowering inefficiencies in IT infrastructure. Providers may optimize rack space and power distribution with the use of predictive analytics. Reduced operating expenses, enhanced power consumption effectiveness (PUE), and better-informed, data-driven choices are the outcomes.

U.S. Data Center Construction Market Size and Growth 2025 to 2034

The U.S. data center construction market size was evaluated at USD 90.00 billion in 2024 and is predicted to be worth around USD 187.10 billion by 2034, rising at a CAGR of 7.59% from 2025 to 2034. 

North America dominated the global data center construction market with the largest market share of 42% in 2024. The U.S. dominated the data center construction market in North America region. The factors such as growing number of investments in technological sectors as well as technological developments are driving the growth of data center construction market in North America region.

Trump, the U.S. president-elect Lawrence Berkeley National Laboratory (LBNL)-produced the 2024 Report on U.S. Data Center Energy Use, which details data center energy use from 2014 to 2028, which was released today by the U.S. Department of Energy (DOE). According to the analysis, the rise in data center load has quadrupled in the last ten years and is expected to double or triple by 2028. 

The expansion of data centers, the growth of AI applications, the expansion of domestic manufacturing, and the electrification of various industries are all expected to contribute to the anticipated need for power in the United States. This increasing demand trend, which is a result of strong industrial investments in America and the country's leadership in technological innovation, was predicted by DOE, which declared a new investment of $20 billion to construct data centers around the US.

For instance,

• In January 2025, Donald Trump, the incoming president of the United States, promised a fresh investment of $20 billion to construct data centers around the country.

Asia-Pacific is expected to develop at the fastest rate during the forecast period. China and India dominate the data center construction market in Asia-Pacific region. The growth of data center construction market in Asia-Pacific region is being driven by growing government initiatives for deployment of cloud-based platforms for storing data on a large scale.

In August 2024, in the face of U.S. tech export restrictions, a senior government official said that China had committed more than 43.5 billion yuan ($6.12 billion) in a statewide effort to develop computer data centers during the previous several years. At an industrial convention in the southwest city of Guiyang, China's National Data Bureau chief Liu Liehong revealed the latest statistic, according to state news agency Xinhua.

Data Center Construction Market Growth Factors

• Growing environmental concerns: In addition, growing environmental concerns regarding greenhouse gas emissions and carbon emissions are paving a new way for the growth of the global data center construction market. This has increased the demand and need for the construction of green data centers on a large scale. Green data centers do not emit any toxic gases into the environment, boosting the growth and development of the global data center construction market.
• Government initiatives: Another factor driving the growth and expansion of worldwide data center construction market is growing government initiatives. Even government sectors also need data centers to collect and store data and information on a large scale. Therefore, government are heavily investing in the construction of data centers. This factor is supporting the growth of global data center construction market.
• Organizations are expanding their market: The market for data center construction is highly fragmented, with multiple significant competitors. Many organizations are expanding their market reach due to technical improvements and product breakthroughs, gaining new contracts, and tapping new markets, which contributes to fierce competition.

Market Scope

Market Dynamics

Driver

Expansion of IT Sector

The growth of the global data center construction market is being driven by the expansion of the information technology sector. Various advanced and innovative technologies are used for the construction of data centers, such as the Internet of Things, big data analytics, and artificial intelligence. This factor is propelling the growth of the global data center construction market over the forecast period.

Restraint

Data privacy and security issues

Factors such as concerns regarding data privacy and security and the high cost of construction of data centers are restricting the expansion of the global data center construction market. The data and information stored in the data center are very crucial and confidential in nature. Once the data is hacked, it takes time to restore. This factor is hindering the growth of the data center construction market.

Opportunity

Integration of quantum computers

In the data center construction market, quantum computing is becoming a reality rather than a pipe dream. Technology Predictions: Quantum computing is currently moving from experimental to real-world applications, especially in cryptography and optimization, and it is making notable advancements in fields that rely on sophisticated processing. By 2025, quantum computing will be ready to support traditional systems with its ground-breaking capabilities, which have the potential to completely change the way data centers function.

IT Infrastructure Insights

Tthe server segment accounted for the largest market share 55% in 2024. The growth of the segment is being driven by the adoption of advanced technologies such as artificial intelligence and internet of things. In addition, government initiatives for deployment of servers in hyperscale data center are boosting the demand for servers.

The networking equipment segment is projected to witness strong growth during the forecast period. The increased need and demand for high computational capacity and memory space to support big data analytics and artificial intelligence driven applications fueled the networking equipment demand.

Power Distribution and Cooling Infrastructure Insights

The cooling segment segment has held a major  market share in 2024. The data centers need cooling systems for maintaining temperatures and humidity levels. It has been observed that data centers get heated easily at utmost temperature. Therefore, cooling systems have become essential part for data centers.

The power distribution segment is expected to witness remarkable growth over the forecast period. Managers of data centers are seeking for ways to improve energy efficiency while still providing a highly flexible information technology environment that can support service-oriented designs. Despite the fact that software and storage are all becoming more adaptive, nothing in the data center can adjust as quickly as the power distribution networks.

End Use Insights

The IT and telecom segment has held a major  market share in 2024. The growth of data center construction market in IT and telecom sector is attributed to the growing number of smartphone and internet users. In addition, the adoption of 5G network technology is also gaining traction in IT and telecom sector. All of these factors are driving demand for data centers.

The BFSI segment is expected to hit strong growth from 2025 to 2034. Banking, Financial Service, and Insurance (BFSI) collects and stores huge amount of data related to clients and customers. The storage of data is done with the help of data centers. Several banks and financial institutes are using data centers for storage of information and data. Thus, these factors are boosting the growth of global data center construction market.

Tier Type Insights

The the tier 3 segment generated the highest market share in 2024. The growth of tier 3 segment is attributed to the enhanced reliability among data centers. In addition, the growing demand for high performance processing and expanded storage capacity is paving way for the growth of the segment. Moreover, tier 3 standard is used across service and banking sectors.

The tier 2 segment is fastest growing segment of the data center construction market over the forecast period. The tier 2 facilities help to provide power backup to the data centers. In addition, tier 2 enhances cooling efficiency of systems. Due to all these benefits, the segment for tier 2 is growing at a rapid pace.

Data Center Construction Market Companies

• Page Southerland Page
• Syska Hennessy Group
• Holder Construction Group
• Turner Construction Company
• Jones Engineering Group
• DPR Construction
• Arup Group
• Corgan Associates Inc.
• AECOM
• Gensler

Recent Developments

• In January 2025, according to Brad Smith, the company's president and vice chair, Microsoft anticipates spending over $80 billion on AI-enabled data centers this fiscal year in order to deploy AI and cloud-based apps and train huge language models.
• In January 2025, the worldwide digital infrastructure firm EDGNEX Data Centers by DAMAC, which is based in Dubai and is entirely owned by the global group DAMAC, took a significant step in its international expansion: a strategic entry into the US data center market. With ambitions to double the initial investment based on future demand, market opportunity, and scalability, EDGNEX announced a $20 billion investment. 

Segments Covered in the Report

By IT Infrastructure

• Networking Equipment
• Servers
• Storage

By Power Distribution and Cooling Infrastructure

• Power Distribution
• Cooling

By Tier Type

• Tier 1
• Tier 2
• Tier 3

By End Use

• IT & Telecom
• BFSI
• Government & Defense
• Healthcare
• Energy
• Others

By Size of Data Center

• Small and Medium-Scale Data Center
• Large-scale Data Center

 By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa