Data Center Construction Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2024-2032

Market Overview

Report Description

Global Data Center Construction Market is valued at US$ 215.6 Billion in 2024, and it is expected to grow US$ 370.2 Billion by 2032 with the CAGR 6.1% from 2024 to 2032.

Scope of Global Data Center Construction Market

The data center construction market includes design, development and construction of facilities that host important IT infrastructure, such as servers, storage systems and networking equipment. These data centers are required to support cloud computing, Artificial Intelligence (AI), Big Data Analytics and Internet of Things (IOT). With global growth in digital services, streaming, remote work and online transactions, demand for advanced and energy-skilled data centers has increased dramatically. This growth drives the companies to make heavy investments in construction projects that can accommodate the growing data volume by ensuring high reliability, scalability and safety.

A recent development had happened on 5th September 2025; Hitachi Energy announced an investment of US$ 1 billion with the aim of strengthening the U.S. power grid infrastructure to meet the increasing energy demands of data centers. The investment includes a US$ 475 million project to create a new power transformer manufacturing facility. This strategic step addresses the critical power supply that are interrupted data center expansion, especially in high development areas. As the data centers proliferate, the need to upgrade power infrastructure becomes faster, which ensures a permanent and uninterrupted energy supply for large-scale digital operations. This data centers highlights the creation of the center building and energy infrastructure, indicating that future growth will rely on advanced construction techniques but also strong energy solutions.

Overall, as data usage increases rapidly, the data center construction market stands at the core of digital change. However, success in this market depends on rapidly integrating permanent power solutions and overcoming the challenges of infrastructure.

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Key Players of Global Data Center Construction Market Report

Some of the prominent players in the Global Data Center Construction Market include AECOM, Balfour Beatty, Clayco, Corgan, DPR Construction, Gensler, HITT Contracting, Holder Construction Group, Jacobs Engineering Group, Laing O’Rourke, Lendlease, Mace Group, Mortenson Construction, PCL Construction, Skanska, Structure Tone, Sundt Construction, Turner Construction Company, Walsh Group, and Others.

Recent Developments

· December 2024, ABB Electrification inaugurated a smart buildings and smart power technology hubs in London, United Kingdom, providing customers an interactive experience with their advanced power distribution and building automation tier types. The facilities feature fully operating circuit breakers, interconnected switchgear, sensors and KNX controllers, which provide technical training opportunities. Designed for customer engagement, technical sessions and corporate programs, the hub displays ABB's commitment to driving innovation in data centers and commercial and residential buildings.

· October 2024, Dell Technologies introduced the new integrated rack-skillful system, server, storage, and data management tier types under their AI factory, designed to power the AI workload largely. The 21-inch Dell IR7000 is adapted to the maximum CPU and GPU density, which features broad and long server slides to support advanced architecture. Built with indigenous liquid cooling capabilities, the rack can manage deployment up to 480kw, occupying about 100% generated heat. Offering flexibility, it supports both del and third-party networking tier types. With the Dell Integrated Rack Scalable System (IRSS), business plug-and-play, can strengthen AI Infrastructure Periodic through energy-skilled design.

Market Analysis

Growth of Cloud Computing and Digital Services Boost the Data Center Construction Market.

Growing reliance on cloud computing services by businesses and individuals is a major driver of the data center construction market. Companies such as Microsoft, Amazon Web Services (AWS) and Google Cloud are rapidly expanding their cloud infrastructure to meet distance data storage, processing power and digital applications. Cloud services enable the businesses to reduce the cost by moving the businesses in a more flexible manner and maintaining on arrival infrastructure at external data centers rather than maintaining IT workloads.

For instance, on 15th August 2025, AWS announced a plan to invest US$ 2.5 billion in the construction of new data centers in many American states including Ohio and Virginia. The purpose of this expansion is to support the increasing demand for cloud services operated by trends such as distance work, online entertainment and digital trade change. AWS stressed that new features would be designed with advanced energy efficiency features to remove environmental concerns, improving performance and scalability.

In conclusion, the accelerating digital transformation and shift toward cloud-based solutions continue to fuel demand for large-scale, energy-efficient data centers. Companies that expand cloud infrastructure are not only able to scale businesses, but also companies are investing in stability, which reflects the tendency of an industry towards greener construction practices.

Rising Demand for Edge Data Centers Drives the Data Center Construction Market Growth in Forecast Period.

With the increase of IOT, autonomous vehicles and real-time data applications, there is a growing requirement for small features located close to the data source. Edge data centers reduce latency, improve speed, and enhance real-time processing capabilities by handling data near where it is generated, rather than sending it to large centralized data centers.

For example, on 28th July 2025, EdgeConneX announced the development of 20 new edge data centers in North America and Europe to improve connectivity for smart cities and 5G networks. These facilities will support applications like autonomous vehicle Navigation, Industrial IOT and Smart Grid management. The company highlighted that the edge data centers are required for industries requiring ultra-low delay and high reliability, especially in telecommunications and manufacturing sectors.

Hence, increase in IOT devices and real-time data applications is accelerating the adoption of edge data centers. This trend resumes the data center construction market by focusing on speed, accountability decentralized, scalable and location-specific infrastructure.

High Capital Expenditure and Operational Costs Hamper Data Center Construction Market Growth.

The construction and maintenance of data centers requires significant capital investment, making it one of the major restrictions for the market. Land acquisition, advanced construction materials, energy efficient cooling systems, power backup solutions, and special IT infrastructure costs can run in hundreds of millions of dollars for large scale projects. For example, a Tier III or Tier IV data center may cost between US$ 150 million to US$ 300 million depending on the construction capacity and location.

In addition, operating expenditure, especially energy consumption, is about 30–50% of the total operating costs. For example, according to a report by the Uptime Institute, data centers consumed about 200 terawatt-hours (TWh) in 2024 globally, which contributes to both high costs and environmental concerns.

In conclusion the capital and operational costs offer a major obstacle to small companies and emerging markets, limiting the number of players capable of large-scale data centers building. As a result, only well installed enterprises and large cloud service providers dominate this location, making a high entry barrier for new people. As long as technological progress reduces costs or innovative financing models, it will continue to shape the restraint competitive landscape.

Energy Supply and Sustainability Challenges of the Data Centers Construction Market Growth.

The rapid expansion of data centers puts heavy stress on the power grid, especially in areas where the infrastructure is not sufficiently prepared. Power outage and energy supply volatility data center can affect the uptime and service reliability. The 2025 state of the data center report by AFCOM revealed that more than 12,000 active data centers are demanding grid interconnections, which exceeds the current grid capabilities. This indicates that an important part of the planned data center projects faces challenges related to energy supply globally.

Additionally, the 2025 report of the Boston Consulting Group (BCG) estimates that the data center deficiency may exceed 45 gigawatts (GW), which highlights adequate differences between employed data center capacity and available grid infrastructure.

Overall, energy supply limitations and stability concerns remain significant obstacles in data center construction. As a demand for a skyrocket of data services, the industry should prioritize renewable energy solutions and work closely with energy providers to ensure grid stability. Future growth will depend on integrating green power sources and innovative energy management solutions to align with rapid global stability goals.

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Geography Analysis

North America

In North American Data Center Construction Market mainly U.S. Operated by, where cloud adoption and digital services are growing rapidly. For instance, in the first half of 2025, North America's Data Center Sector used 2.2 gigawatt (GW) of power capacity, focusing in areas such as Northern Virginia, which exceeds three times the Dallas-Fort. Currently, a record is 7.8 GW under construction, and additional 31.6 GW is in planning stages.

Europe

In Europe, data center construction is accelerating, especially in Germany, UK and Nordics, inspired by the demand for digital changes and edge computing. In June 2025, the German government announced a new regulation that implements strict energy efficiency requirements on data center construction projects. For this regulation, operators need to integrate renewable energy and advanced cooling technologies to reduce carbon emissions, which affect the running and future construction projects.

Asia Pacific

The Asia Pacific region is observing a rapid data center expansion, especially due to high digitization rates and adoption of rising cloud services, especially in China, India and Singapore. In July 2025, China launched a major initiative to develop a national smart grid system with a view to supporting large-scale new data center construction projects. The goal is to reduce energy obstacles by integrating renewable energy sources and increasing grid capacity in data-water areas such as Guangdong and Jiangsu provinces.

Latin America

Latin America's data center market is emerging, especially in Brazil and Mexico, where enterprises and telecom operators are expanding the infrastructure of digital services. In May 2025, Brazil's largest telecom operator, Vivo announced the construction of a new large-scale data center at Sao Paulo. The project aims to address the increasing demand for cloud services in the region, but some distant areas face challenges due to incredible power supply, which requires renewable energy solutions.

Middle East and Africa

To support the Middle East and Africa digital economies and government digitalization programs, especially the increasing number of data center projects in UAE, Saudi Arabia and South Africa are looking. In September 2025, the UAE's Massar announced to launch a 100 MW Green Data Center project in Abu Dhabi, which is fully powered by renewable energy. This initiative responds to the challenges of power stability in the region and aims to set a benchmark for environmentally friendly data center building.

What you can gain from Global Data Center Construction Market Report

Provides an in-depth analysis of the dynamics of the Data Center Construction segment across various regions.

Data Center Construction market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue US$), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.

The Global Data Center Construction Market report covers extensive analysis of emerging trends and the competitive landscape.

Global Data Center Construction Market report helps to identify opportunities in the marketplace.

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Global Data Center Construction Market Segmentation

By Infrastructure Type:

· Electrical Infrastructure

o UPS

o Power Distribution Units (PDUs)

o Backup generators

o Others

· Mechanical Infrastructure

o Cooling Systems

o HVAC

o Racks

o Ductwork

o Raised Flooring

o Others

o Networking infrastructure

o Others

· General Construction

By Data Center Tier:

· Tier I

· Tier II

· Tier III

· Tier IV

By Data Center Type:

· Colocation Data Centers

· Enterprise Data Centers

· Hyperscale Data Centers

By End-User Industry:

· Energy & Utilities

· Government & Defense

· Healthcare

· IT & Telecom

· Retail & E-commerce

· Other Industries

By Regional & Country Level:

· North America

o U.S.

o Canada

· Europe

o U.K.

o France

o Germany

o Italy

· Asia Pacific

o China

o Japan

o India

o Southeast Asia

· Latin America

o Brazil

o Mexico

· Middle East and Africa

o GCC

o Africa

o Rest of Middle East and Africa

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