Data Center Construction Market Revenue to Attain USD 458.05 Bn by 2033


10 Apr 2025

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The global data center construction market revenue was valued at USD 258.56 billion in 2025 and is expected to attain around USD 458.05 billion by 2033, growing at a CAGR of 7.41% during forecast period. The demand for data center construction is increasing due to technological advancements in various industries.

Data Center Construction Market Revenue Statistics

Market Overview

Data center construction is the method of making advanced centers for the increasingly expanding computer systems, storage systems, and IT equipment needed for data storage and analyzing across various industries. This process includes building construction, site selection, installation of electrical and mechanical systems, security implementation, and networking infrastructure. The growth of data storage requires edge computing, cloud computing, and the growth of digital services.

Report Highlights

  • By IT infrastructure, the server segment dominated the data center construction market in 2024. The dominance of the segment can be attributed to the increasing adoption of advanced technologies like AI and IoT. The networking equipment segment is expected to grow at the fastest rate over the forecast period. The growth of the segment can be credited to the growing demand for high computational capacity and storage.
  • By power distribution and cooling infrastructure, the cooling segment held the largest market share in 2024. The dominance of the segment can be linked to the increasing need for cooling systems in data centers to maintain proper temperature and humidity levels. The power distribution segment is anticipated to grow at the fastest rate over the forecast period. The growth of the segment can be driven by the rising need to enhance energy efficiency while offering highly flexible information technology.
  • By end use, the IT and telecom segment led the market in 2024. The dominance of the segment is owing to the surging number of smartphone and internet users across the globe. The BFSI segment is expected to show the fastest growth during the projected period. The growth of the segment is due to the increase in the use of data centers from the banking sector.
  • By tier type, the tier 3 segment dominated the market in 2024. The dominance of the segment is because of the increasing demand for high-performance processing infrastructure. The tier 2 segment is estimated to grow at the fastest rate during the projected period. The growth of the segment can be credited to the improvements offered by this segment in the form of the cooling efficiency of systems.

Growth of the IT Sector

The expansion of the data center construction market is being propelled by the growth of the IT sector. Various innovative and advanced technologies are utilized for the construction of data centers, like big data analytics, the Internet of Things, and artificial intelligence. Also, in the market, quantum computing is increasingly being adopted, particularly in cryptography.

Increasing Data Consumption

The extensive expansion of data, boosted by the internet, IoT, and cloud computing, requires increased data storage and processing capacity, further impacting positive marketgrowth. Moreover, hyperscale or large-scale data centers are becoming increasingly common, which requires substantial investments in IT infrastructure, construction, and power equipment. 

Growing Demand for High-Performance Applications

The increasing demand for high-performance applications, driven by innovations such as IoT and 5G, is boosting the construction of edge data centers. This centers and reduces latency, specifically to the requirement for smooth digital experiences. Furthermore, the market is expanding as market players are heavily investing in infrastructure to support edge computing.

Regional Insight

North America dominated the data center construction market in 2024. The dominance of the region can be attributed to the increasing number of investments in technological areas, coupled with the growth of domestic manufacturing. Moreover, the region's emphasis on technology and increasing economic development creates a favorable landscape, position North America as a key player in the market.

Asia Pacific is anticipated to grow at the fastest rate in the data center construction market over the forecast period. The growth of the region can be credited to the increasing government initiatives for the implementation of cloud-based platforms for storing a wide range of data on a huge scale. Furthermore, countries like Malaysia and Singapore are positioning themselves as major hubs for data centers, attracting tech giants and multinational corporations to establish their presence.

Data Center Construction Market Coverage

Report Attribute Key Statistics
Market Revenue in 2025 USD 258.56 Billion
Market Revenue by 2033 USD 458.05 Billion
CAGR 7.41%
Quantitative Units Revenue in USD million/billion, Volume in units
Largest Market North America
Base Year 2024
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market News 

  • In January 2024, Digital Realty, Brookfield, and Reliance Industries inaugurated a new data center in Chennai, India. This launch marked the commencement of the joint venture between the three companies known as Digital Connexion.
  • In January 2024, The Adani Group revealed intentions to invest USD 6 billion in data center infrastructure in Maharashtra, India. Under an MoU with the Maharashtra government, the investment will be spread over the next decade, aiming to develop 1 gigawatt (GW) of data center capacity.
  • In April 2024, AdaniConneX announced its investment of USD 1.44 billion for the construction of data centers across India. Similarly, Maincubes, a German colocation firm, launched its second data center in Frankfurt.

Data Center Construction Market Companies

Market Segmentation

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

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