As of March 2025, there were a reported 5,426 data centers in the United States, the most of any country worldwide. A further 529 were located in Germany, while 523 were located in the United Kingdom. What is a data center? A data center is a network of computing and storage resources that enables the delivery of shared software applications and data. These facilities can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As a result, whether it is a cloud, colocation, or managed service, data center real estate will have increasing importance worldwide. Hyperscale data centers In the past, data centers were highly controlled physical infrastructures, but the cloud has since changed that model. A cloud data service is a remote version of a data center – located somewhere away from a company's physical premises. Cloud IT infrastructure spending has grown and is forecast to rise further in the coming years. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers.

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Data Center General Construction Market Size 2025-2029

The data center general construction market size is forecast to increase by USD 9.3 billion, at a CAGR of 8.7% between 2024 and 2029.

The market is experiencing significant growth, driven by increased investment in data center infrastructure. This trend is fueled by the growing recognition of data centers as essential components of digital transformation strategies for businesses across industries. Another key driver is the rising focus on constructing energy-efficient and environmentally sustainable data centers, or 'green data centers,' to reduce carbon footprint and meet sustainability goals. These solutions enable organizations to quickly deploy data processing capabilities and adapt to changing business needs. Physical security audits and network security protocols ensure critical infrastructure protection.
However, challenges persist, including complex regulatory environments, rising construction costs, and the need for skilled labor to design and build advanced data center infrastructure. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed about technological advancements, regulatory requirements, and industry best practices. The market landscape is also shaped by emerging technologies such as containerized and micro mobile data center, which offer flexibility, scalability, and cost savings. Site preparation services, including plumbing system installation and concrete foundation work, lay the groundwork for successful data center construction projects.

What will be the Size of the Data Center General Construction Market during the forecast period?

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The data center construction market continues to evolve, driven by the insatiable demand for digital transformation and the ever-growing need for reliable and efficient IT infrastructure. Uninterruptible power supplies (UPS) and raised floor installation are essential components of data center design, ensuring uninterrupted power delivery and optimal airflow distribution. CCTV security systems, fire suppression systems, and access control are integral to maintaining physical security. Raised floor systems, vibration control, and structural steel design are crucial for accommodating heavy IT equipment and ensuring stability. Humidity control systems and precision cooling systems are essential for maintaining optimal conditions for sensitive electronics.
Power capacity planning, generator backup power, and earthquake resistant design are vital for ensuring business continuity and disaster recovery. Cable management systems, network cabling infrastructure, and building automation systems streamline operations and improve efficiency. HVAC infrastructure design, thermal management solutions, and mechanical room design optimize energy usage and reduce costs. Data center racks, power distribution units, and server room construction accommodate growing IT requirements. Airflow management, fire alarm installation, and security access control ensure optimal performance and safety.
Data center migration services enable seamless transitions to new facilities or upgraded systems. According to recent market research, the data center construction market is expected to grow by over 10% annually, driven by increasing demand for cloud services and the growing importance of digital transformation in various industries. For instance, a leading technology company recently expanded its data center capacity by 50%, investing in advanced cooling systems and power distribution units to support its growing customer base.

How is this Data Center General Construction Industry segmented?

The data center general construction industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  BFSI
  Government
  Manufacturing
  Media and entertainment
  Others


Type

  Base building shell construction
  Architecture planning and designing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    The Netherlands
    UK


  APAC

    China
    India


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The BFSI segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing digitization of core processes and the generation of vast amounts of data across various sectors, particularly in the BFSI industry. Financial organizations are demanding advanced data center infrastructure to ensure the secure storage of sensitive financial data and meet compliance requirements. The volume of customer behavior data

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Green Data Center Market Size 2025-2029

The green data center (GDC) market size is forecast to increase by USD 90.65 billion, at a CAGR of 13.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing electricity consumption and rising costs associated with traditional data centers. This trend is pushing organizations to adopt energy-efficient solutions, making GDCs an attractive alternative. Another key driver is the growing adoption of Data Center Infrastructure Management (DCIM) solutions and automation technologies, which enable better energy management and resource utilization in GDCs. However, the high cost of building and maintaining these facilities remains a significant challenge.
Additionally, partnerships and collaborations between industry players can help reduce costs and share best practices, making GDCs a strategic investment for businesses seeking to reduce their carbon footprint and optimize operational efficiency. Despite this, companies can capitalize on the market's potential by focusing on innovative design and construction methods, utilizing renewable energy sources, and implementing advanced cooling technologies to minimize energy consumption and costs.

What will be the Size of the Green Data Center (GDC) Market during the forecast period?

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The market continues to evolve, driven by the increasing demand for cloud computing efficiency and the need to reduce carbon footprint. Hardware optimization and server virtualization play significant roles in this evolution, enabling data centers to house more servers while consuming less energy. For instance, a leading technology company was able to increase its server capacity by 50% while reducing energy consumption by 30% through server consolidation and virtualization. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Moreover, the adoption of advanced technologies such as software-defined networking, energy management systems, and automation technologies contributes to the market's dynamism. These solutions optimize network performance, improve power usage effectiveness, and enhance security protocols.

In fact, industry experts anticipate a 15% compound annual growth rate (CAGR) for the GDC market over the next five years, driven by the increasing adoption of renewable energy sources, sustainable building design, and thermal management solutions. Furthermore, free cooling techniques, such as liquid cooling technology and geothermal cooling, are gaining traction in the market, as they offer significant energy savings. Additionally, the integration of AI-powered optimization and predictive maintenance systems allows for more efficient use of resources and minimizes waste heat recovery. The GDC market is characterized by continuous innovation and the integration of various technologies aimed at reducing greenhouse gas emissions and improving cloud computing efficiency.

From hardware optimization and server virtualization to software solutions and advanced thermal management techniques, the market's evolution is driven by the need for sustainability and energy efficiency. Data center infrastructure continues to evolve, with modularity and building automation systems becoming increasingly popular, enabling energy storage systems and remote monitoring systems to improve overall energy efficiency metrics.

How is this Green Data Center (GDC) Industry segmented?

The green data center (GDC) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power solutions
  General construction
  Cooling solutions
  Monitoring and management


End-user

  BFSI
  Energy
  IT and telecom
  Others


Type

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period. The digital transformation of businesses has led to an increasing reliance on cloud computing, with 90% of small and medium enterprises projected to adopt cloud storage by 2025. This shift necessitates the construction of data centers to accommodate the demand for higher computational power and network traffic. The growing complexity of data storage systems and the exponential increase in data necessitate adva

The statistic shows the number of data centers worldwide in 2015, 2017, and 2021. In 2017, it was estimated that the number of data centers globally had fallen to *** million.

IM3 Projected US Data Center Locations This dataset contains model projections of new data center facilities in the contiguous United States (CONUS) through 2035 using the CERF – Data Centers model. Data center locations are modeled across four data center electricity demand growth scenarios (low, moderate, high, higher) and five market gravity scenarios (0%, 25%, 50%, 75%, 100%). Projected locations are intended to be regional representations of feasible siting locations in the future to assess potential grid and water stress impacts. The data center load growth scenarios correspond with the rates outlined in EPRI (2024) and include 3.71%, 5%, 10%, and 15% annual growth of electricity demand for data centers from 2023 values in 37 states across the CONUS. Market gravity scenarios correspond to the relative importance of proximity to data center markets or high population areas compared to locational cost in the siting algorithm. 0% market gravity means that siting decisions were entirely determined by the locational cost in each feasible location. 100% market gravity means that only market proximity was considered when siting. Other scenarios have weight placed on both components where total weight always equals 100%. Locational cost is dependent on facility cooling type and corresponding electricity cost, taxes, andmore » other factors. Facility cooling type is spatially determined where high water stress and/or areas with high summer wet bulb temperatures are assumed to operate with mechanical cooling for a higher fraction of the year rather than evaporative cooling. Feasible data center siting areas are based on geospatial suitability raster data developed with open-source information. The following areas are excluded from siting: Areas within 300 m of a federal airport runway Waterbodies Areas with slope >16% Areas susceptible to sinkholes High coastal or inland flood risk areas Local, state, and federal parks, leisure areas, and cemeteries Areas >2 km away from electric substations Areas >5 km away from a municipal water supplier service area Areas >2 km away from high-speed fiber provider service territory Protected Areas Database of the United States (PAD-US) areas Railroads, major roadways, and minor roadways Military areas and training grounds NLCD developed lands Areas >0.8 km (0.5 miles) from NLCD developed lands Because we use open-source information, proprietary information that can influence siting decisions such as individual tax agreements with cities, detailed fiber line connectivity, electric grid power capacity agreements, and others, are not currently accounted for in the modeling process. Using specific building locations and footprints in the dataset for local planning purposes is not advised. Technical Information Geospatial data is provided in geojson format using the Albers Equal Area Conic (ESRI:102003) coordinate reference system. The datasets contain the following parameters: id - unique identification number within given scenario file growth_scenario – data center demand growth scenario market_gravity_weight – market gravity weight scenario (%) region – name of region (i.e., US State) total_cost_million_usd – locational siting cost ($million) campus_size_square_ft – total land acquired for data center facility (square ft) data_center_it_power_mw – IT power of data center facility (MW) mechanical_cooling_frac – fraction of year when data center uses mechanical cooling system water_cooling_frac– fraction of year when data center uses evaporative cooling system cooling_energy_demand_mwh – total annual facility energy demand for cooling (MWh) cooling_water_demand_mgy – total annual facility water demand for cooling (MG) cooling_water_consumption_mgy – total annual facility water consumed (MG) normalized_locational_cost – normalized total locational cost score for location normalized_gravity_score – normalized market gravity score for location weighted_siting_score – total weighted siting score of locational cost and gravity score geometry – polygon geometry of facility Acknowledgment IM3 is a multi-institutional effort led by Pacific Northwest National Laboratory and supported by the U.S. Department of Energy's Office of Science as part of research in MultiSector Dynamics, Earth and Environmental Systems Modeling Program. License This data is made available under a CCBY4.0 License Disclaimer This material was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor the United States Department of Energy, nor the Contractor, nor any or their employees, nor any jurisdiction or organization that has cooperated in the development of these materials, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness or any information, apparatus, product, software, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof, or Battelle Memorial Institute. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. PACIFIC NORTHWEST NATIONAL LABORATORYoperated byBATTELLEfor theUNITED STATES DEPARTMENT OF ENERGYunder Contract DE-AC05-76RL01830« less

The US multi-tenant (colocation) data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT). Businesses, particularly large enterprises and those in the BFSI, IT & Telecom, and Healthcare & Lifesciences sectors, are increasingly outsourcing their IT infrastructure to colocation providers to benefit from scalability, cost efficiency, and enhanced security. The market's expansion is further fueled by the rising demand for edge computing, necessitating data centers closer to end-users. While the overall market size for the US in 2025 is unavailable in the provided data, considering a global CAGR of 10.89% and the significant US market share, a reasonable estimate for the US market size in 2025 would be between $50 billion and $70 billion, depending on specific market penetration and growth. This estimate accounts for the substantial investment and activity within the US data center sector. The market is segmented by solution type (wholesale vs. retail multi-tenant), organization size (SMEs vs. large enterprises), and end-user vertical. Large enterprises and the BFSI sector are anticipated to lead market growth due to their significant IT infrastructure requirements and heightened security concerns. Despite the positive growth trajectory, challenges remain. Competition among established and emerging players is fierce, leading to price pressures. Furthermore, increasing energy costs and the need for sustainable data center operations are emerging as key restraints. However, ongoing investments in energy-efficient technologies and the demand for robust and reliable infrastructure should largely mitigate these challenges. The market forecast for 2025-2033 predicts continued expansion, driven by the aforementioned factors and likely exceeding a market value of $100 Billion by 2033. Regional distribution within the US will likely favor established tech hubs on the coasts and key metropolitan areas, with variations depending on the specific segment. Recent developments include: In September 2023, A Full-Stack Cloud Service Provider, Expedient, partnered with Kyndryl, the world's largest IT infrastructure services provider. Through this collaboration, Expedient's robust data center colocation and cloud infrastructure will enhance Kyndryl's industry-leading cyber resilience offerings to customers. This partnership will enable Expedient and Kyndryl to extend the reach and effectiveness of security and cyber resilience services to a broader range of customers, helping organizations across various industries strengthen and fortify their cybersecurity posture while mitigating the risks associated with data breaches., In July 2023, Ubiquity, a digital infrastructure investor, announced the acquisition of edgepresence, a pioneer in the build-to-suit edge data center industry, delivering turnkey, localized, and scalable network compute solutions for carriers and data hyperscalers. Edgepresence's Edge Data Centers (EDCs) are modular, purpose-built data centers efficiently designed to include critical power, monitoring, physical security, and cooling. Complementing Ubiquity's existing digital infrastructure, EDCs enable far-edge functions, minimizing latency and improving performance for network tenants in a highly secure facility that can be deployed in weeks.. Key drivers for this market are: Growing Adoption of Cloud Services is expected to flourish the market, Increasing Growth in Wholesale Datacenter Multi-tenant Spaces to propel demand (albeit from a lower base); Increased Emphasis on Compliance with Data Regulations and Cost-Effective Nature of Multi-tenant Facilities to Drive Adoption among SME's. Potential restraints include: Growing Adoption of Cloud Services is expected to flourish the market, Increasing Growth in Wholesale Datacenter Multi-tenant Spaces to propel demand (albeit from a lower base); Increased Emphasis on Compliance with Data Regulations and Cost-Effective Nature of Multi-tenant Facilities to Drive Adoption among SME's. Notable trends are: Healthcare Sector Accounts for Significant Share.

The North American data center cooling market, valued at $6.44 billion in 2025, is projected to experience robust growth, driven by the increasing adoption of high-performance computing, the proliferation of cloud services, and the burgeoning demand for edge computing infrastructure. The market's Compound Annual Growth Rate (CAGR) of 11.80% from 2025 to 2033 signifies significant expansion opportunities. Key drivers include the rising heat density in data centers necessitating efficient cooling solutions, stringent regulations concerning energy efficiency, and growing concerns about environmental sustainability. Air-based cooling systems, including CRAH units, chillers, and economizers, currently dominate the market, but liquid-based cooling technologies like immersion and direct-to-chip cooling are gaining traction due to their superior cooling capacity and energy efficiency. The IT & Telecom sector is the largest end-user vertical, contributing significantly to market growth, followed by retail and consumer goods, healthcare, and media & entertainment. Competitive landscape analysis reveals that established players such as Vertiv, Stulz, Schneider Electric, and Rittal are vying for market share alongside innovative companies offering advanced cooling technologies. The United States is the largest market within North America, with Canada and Mexico exhibiting substantial, albeit slower, growth trajectories. The market’s expansion is, however, subject to certain restraints including high initial investment costs associated with advanced cooling solutions and the need for skilled professionals for installation and maintenance. The forecast period (2025-2033) anticipates continued market expansion, fueled by the ongoing digital transformation across various sectors. The increasing adoption of artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) will further intensify demand for advanced cooling systems capable of handling increasingly higher heat densities. Liquid cooling solutions are expected to witness faster growth compared to air-based cooling, driven by their superior efficiency and ability to cool high-density servers. Furthermore, the growing focus on sustainability and reduced carbon footprint will further propel the adoption of energy-efficient cooling technologies, presenting immense opportunities for market players offering innovative, environmentally friendly solutions. The North American market's growth trajectory will be influenced by government initiatives promoting energy efficiency and data center sustainability, as well as advancements in cooling technologies that deliver enhanced performance and reduced operational costs. Recent developments include: March 2024: Boreas Technology, a specialist in data center cooling technologies, developed the Rear Door Cooling Device, which is designed for high-density environments. This innovation provides precision cooling with up to 50kW capacity. Experience efficiency, sustainability, and industry-leading standards with the rear door cooling device. Boreas Technology's new rear door cooling device allows efficient operation for cabinets expected to operate at high capacity and density in data centers, enabling effective heat management., November 2023: Vertiv, a worldwide provider of critical digital infrastructure and continuity solutions, introduced a prefabricated modular data center, Vertiv SmartMod Max CW. It is mainly built to address the increasing demand for rapid deployment of computing. This configurable and scalable solution supports up to 200kW of total IT load in a single system and utilizes chilled water cooling for reduced environmental impact and energy efficiency.. Notable trends are: Growth in the Construction Sector Boosting the Demand for Furniture Products.

The total amount of data created, captured, copied, and consumed globally is forecast to increase rapidly, reaching *** zettabytes in 2024. Over the next five years up to 2028, global data creation is projected to grow to more than *** zettabytes. In 2020, the amount of data created and replicated reached a new high. The growth was higher than previously expected, caused by the increased demand due to the COVID-19 pandemic, as more people worked and learned from home and used home entertainment options more often. Storage capacity also growing Only a small percentage of this newly created data is kept though, as just * percent of the data produced and consumed in 2020 was saved and retained into 2021. In line with the strong growth of the data volume, the installed base of storage capacity is forecast to increase, growing at a compound annual growth rate of **** percent over the forecast period from 2020 to 2025. In 2020, the installed base of storage capacity reached *** zettabytes.

The optical interconnect market, valued at $17.14 billion in 2025, is projected to experience robust growth, driven by the increasing demand for high-speed data transmission in data centers, telecommunications networks, and consumer electronics. The compound annual growth rate (CAGR) of 13.15% from 2025 to 2033 indicates a significant expansion, fueled by several key factors. The proliferation of cloud computing and the rise of 5G and beyond necessitate high-bandwidth, low-latency connections, driving the adoption of advanced optical interconnect technologies. Furthermore, the miniaturization of optical components and the development of cost-effective solutions are making optical interconnects increasingly accessible across various applications. Growth is also fueled by the increasing adoption of advanced packaging technologies for higher density and performance. Despite these positive factors, market expansion may be somewhat constrained by the complexities associated with deploying and managing optical fiber infrastructure, as well as competition from alternative technologies like copper cabling in certain niche applications. The market segmentation, while not explicitly defined, likely comprises various fiber optic cable types (single-mode, multi-mode), interconnect technologies (active optical cables, transceivers), and application segments (data centers, telecommunications, consumer electronics). Major players like 3M, Sumitomo Electric, Molex, Amphenol, TE Connectivity, Go!Foton, II-VI, Corning, Cisco, and Huawei are actively shaping market dynamics through innovation and strategic partnerships. Regional distribution is expected to be heavily concentrated in North America and Asia-Pacific, reflecting the higher concentration of data centers and technological advancements in these regions. The historical period (2019-2024) indicates a period of significant growth laying the foundation for the substantial expansion predicted in the forecast period (2025-2033). Sustained investment in research and development within the industry will further propel market growth in the coming years. Recent developments include: March 2021 - Canada-based Reflex Photonics was awarded a multimillion-dollar contract to deliver thousands of SpaceABLE 28 optical module devices to be used in high-throughput communication satellites (HTCS) that may be deployed in geostationary orbit. Building on the recognized robustness inherent in the design of Reflex Photonics' optical modules, the SpaceABLE28 line may provide radiation-resistant optical interconnect modules tested and qualified for use in harsh space environment. In 2019, the company launched new LightCONEX active optical blind mate that interconnects compatible with the upcoming VITA 66.5 standard and supported by the Sensor Open System Architecture (SOSA) consortium., July 2020 - Vodafone New Zealand collaborated with US-based Ciena Corporation for deploying 800-Gbps data center interconnect between its facilities in Auckland. The fiber network upgrade may help Vodafone manage network requirements in support of its recently launched 5G service. The company may leverage Ciena's WaveLogic 5 Extreme (WL5e) coherent optical engine online cards plugged into Vodafone New Zealand's previously fielded Ciena 6500 packet-optical transport platforms. The new capabilities may enable the service provider to offer transmission rates from 200 to 800 Gbps. The company also may see a 50% reduction in power consumption.. Key drivers for this market are: Increasing Demand for Communication Bandwidth Owing to Demand for Cloud Computing, AI, and HPC, Increasing Investment in Data Centers Interconnect and Fiber Optic Communication. Potential restraints include: Increasing Demand for Communication Bandwidth Owing to Demand for Cloud Computing, AI, and HPC, Increasing Investment in Data Centers Interconnect and Fiber Optic Communication. Notable trends are: Data Communication is Expected to Spur the Demand for Optical Interconnects.

In 2023, software and tech hosting/cloud services/MSP companies had a much higher spending share on IT than other industries, amounting to ** percent and ** percent of their revenues, respectively. By contrast, the consumer products and services industry invested only around **** percent of their revenue in IT. Overall, all industries increased their IT spending per revenue share in 2023 compared to the previous year. Cloud computing Cloud computing is an essential IT service that utilizes a network of distant servers hosted over the Internet to store, handle, and process data. This segment of IT services was projected to generate revenues exceeding *** billion U.S. dollars in 2024 and is expected to continue its rapid growth trajectory. Managed Services Providers (MSPs) provide companies with the expertise and technical support to manage their cloud infrastructure and products without the need for in-house specialists. Cloud computing is segmented into three main categories. Software as a Service (SaaS) delivers software applications over the Internet, on a subscription basis, freeing companies from software and hardware management. Infrastructure as a Service (IaaS) offers a virtualized computing infrastructure managed over the Internet, allowing businesses to avoid the costs and complexities of purchasing and managing physical servers and data center infrastructure. Platform as a Service (PaaS) provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the infrastructure.