The United States Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

The US data center construction market is expected to grow from USD 48.18 billion in 2024 to USD 112.33 billion by 2030, at a CAGR of 15.15% from 2024 to 2030.

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US Data Center Construction Market Size 2025-2029

The US data center construction market size is forecast to increase by USD 15.02 billion at a CAGR of 10.8% between 2024 and 2029.

US Data Center Construction Market is experiencing significant growth due to the increasing number of data centers being constructed to meet the surging demand for digital services and cloud computing. This trend is driven by the shift towards remote work and learning, as well as the increasing adoption of Internet of Things (IoT) devices and advanced technologies such as artificial intelligence and machine learning. Another key trend in the market is the focus on constructing eco-friendly data centers. With growing concerns over energy consumption and carbon footprint, data center operators are investing in renewable energy sources and energy-efficient designs to reduce their environmental impact.
However, the market is not without challenges. Cybersecurity issues remain a major concern, with data centers being prime targets for cyber attacks due to the sensitive information they house. As such, data center operators must invest in robust security systems and implement strict access controls to mitigate these risks. However, cybersecurity challenges must be addressed to ensure the secure operation of these facilities. Companies seeking to capitalize on market opportunities should focus on energy efficiency, cybersecurity, and sustainability to stay competitive.

What will be the size of the US Data Center Construction Market during the forecast period?

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US data center construction market is experiencing robust growth, driven by the increasing demand for advanced telecommunications infrastructure to support IT and telecommunications industries, government and defense sectors, 5G networks, cloud-based services, and edge data centers. This growth is reflected in the significant expansion of data center capacity, with a focus on electrical infrastructure, including UPS systems, and mechanical infrastructure, such as cooling systems. Edge data centers and edge computing are also gaining traction due to the need for real-time data processing and data-driven decision-making.
The market's size is substantial, with billions of dollars being invested annually. Physical damage from natural disasters and the increasing importance of advanced technology solutions are additional factors contributing to the market's momentum. Overall, the data center construction market is a dynamic and evolving sector, underpinned by the ongoing digital transformation and the growing importance of technology in various industries.

How is this market segmented?

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

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


End-user

  IT and telecom
  BFSI
  Government and defense
  Others


Infrastructure

  Electrical Infrastructure
  Mechanical Infrastructure
  Networking Infrastructure
  Power Distribution & Cooling Infrastructure


Geography

  US

By Application Insights

The enterprise segment is estimated to witness significant growth during the forecast period.

In today's digital economy, businesses across sectors including healthcare, finance, and IT are undergoing transformation through the adoption of cloud computing, big data analytics, IoT devices, and artificial intelligence (AI). The resulting surge in digital data from various sources necessitates the need for advanced data center infrastructure. Enterprise data centers must provide high-capacity storage and processing capabilities to manage and analyze vast volumes of data efficiently. This data is generated from sources such as social media, mobile devices, IoT sensors, and business applications. By deriving actionable insights from this data, businesses can support decision-making processes and optimize operations.

The electrical infrastructure of data centers includes UPS systems and other electrical infrastructure, while mechanical infrastructure comprises cooling systems. IT and telecommunications sectors are significant consumers of data center services, including cloud-based data storage, cloud applications, and AI algorithms. Government and defense sectors also utilize data centers for cloud-based healthcare solutions, smart devices, and disaster recovery protocols. The adoption of cloud computing and edge computing, 5G networks, and telecommunication providers' cloud-based services is driving the demand for data centers. However, data security and cyber threats, including data breaches, remain critical concerns. Innovative designs, modular power infrastructure, and OPEX savings through real-time monitoring software and free cooling techniques are essential

United States Data Center Construction Market valued at USD 48 billion, driven by AI workloads, cloud expansion, and big data analytics, with strong growth projected through 2030 in key regions like Northern Virginia and Dallas.

Introduction

According to Market.us, The Global Data Center Construction Market size is expected to be worth around USD 453.5 Billion by 2033, growing from USD 237.1 Billion in 2023 at a CAGR of 6.7% during the forecast period from 2024 to 2033.

The Data Center Construction Market is experiencing substantial growth driven by the increasing demand for cloud services, big data analytics, and the proliferation of Internet of Things (IoT) devices. The surge in data generation has necessitated robust infrastructure to handle vast volumes of data securely and efficiently, thus propelling the expansion of data center construction. Companies are heavily investing in building state-of-the-art facilities that incorporate advanced energy-efficient technologies and adhere to strict regulatory standards regarding data security and environmental impact.

A significant growth factor for this market is the escalating need for data processing power in industries such as finance, healthcare, and e-commerce, which rely heavily on real-time data processing. The trend towards digital transformation, emphasizing cybersecurity, and sustainable practices is pushing businesses to invest in modernizing their data centers or constructing new ones that are better equipped to handle future technological advancements.

The opportunity in this sector lies in adopting green construction practices and energy-efficient technologies. As environmental concerns become more pressing, the industry is moving towards sustainable development. Innovations such as the use of renewable energy sources, advanced cooling mechanisms, and energy management systems are not only environmentally friendly but also cost-effective in the long run, presenting significant opportunities for market growth and differentiation.

US Data Center Construction Market size was valued at USD 33.4 Billion in 2024 and is expected to reach USD 89.5 Billion by 2032, growing at a CAGR of 13.1% from 2025 to 2032.

Key Market Drivers

Growing Adoption of Cloud Computing: The growing adoption of cloud computing boosts the US data center construction market. As the popularity of cloud computing grows, so does the demand for data centers to support it. The United States accounts for a substantial percentage of the worldwide cloud computing market, which is expected to reach $1.3 trillion by 2025. Companies such as Amazon Web Services are making significant investments in data center infrastructure, including a $35 billion investment in Virginia alone between 2023 and 2024.

Growth in Data Generation: The growth in data generation will propel the U.S. data center construction market. As data creation increases, more storage infrastructure is required to keep up.

From 2015 to 2024, the value of private data center construction in the United States has increased tenfold. In 2024, the private sector spent over 28.3 billion U.S. dollars on data center construction, approximately 10 billion U.S. dollars more than the previous year.

Data Center Construction Market Outlook

According to our latest research, the global data center construction market size reached USD 58.3 billion in 2024, demonstrating robust expansion driven by digital transformation initiatives and surging data consumption worldwide. The market is anticipated to grow at a CAGR of 6.7% from 2025 to 2033, with the total market value projected to reach USD 105.2 billion by 2033. Key growth factors include the proliferation of cloud computing, rapid adoption of advanced technologies such as AI and IoT, and the ever-increasing demand for hyperscale and edge data centers. As per our latest research, the sector is witnessing significant investments from both private and public entities, further propelling expansion across all major regions.

One of the primary growth drivers for the data center construction market is the exponential rise in digital data generation, fueled by the widespread adoption of cloud-based services, big data analytics, and artificial intelligence. Enterprises across diverse sectors are modernizing their IT infrastructure to accommodate high-speed, low-latency applications, which, in turn, is accelerating the demand for new data centers. The emergence of 5G networks is also playing a pivotal role by enabling faster data transmission and supporting the deployment of edge computing facilities closer to end-users. This technological convergence is compelling organizations to invest in state-of-the-art data centers that offer scalability, security, and energy efficiency, thereby driving sustained market growth.

Additionally, increasing regulatory requirements for data localization and heightened cybersecurity concerns are compelling organizations to construct data centers within national borders, further stimulating market expansion. Governments worldwide are implementing stringent data protection laws, necessitating the development of local data storage and processing facilities. This trend is particularly pronounced in regions such as Europe and Asia Pacific, where regulatory frameworks like GDPR and China’s Cybersecurity Law have a direct impact on data center construction activities. Furthermore, the growing emphasis on sustainability and the adoption of green building practices are influencing the design and construction of energy-efficient data centers, aligning with global environmental goals and attracting eco-conscious investors.

Another significant growth factor is the surge in demand from emerging markets, where rapid urbanization and digitalization are driving the need for reliable data infrastructure. Countries in Asia Pacific and Latin America are witnessing a boom in e-commerce, digital payments, and online services, necessitating robust data center networks to support these activities. The proliferation of smart devices and IoT applications is also contributing to the rising need for localized data processing and storage solutions. As a result, major industry players are expanding their footprint in these regions, leveraging strategic partnerships and investments to capitalize on untapped growth opportunities and cater to the evolving needs of local enterprises.

From a regional perspective, North America continues to dominate the data center construction market, owing to its advanced technological ecosystem, high concentration of cloud service providers, and significant investments in hyperscale data centers. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid digitalization, favorable government policies, and the increasing adoption of cloud computing among enterprises. Europe also holds a substantial share, supported by strong regulatory frameworks and a focus on sustainable data center development. Meanwhile, the Middle East & Africa and Latin America are gradually catching up, propelled by infrastructural advancements and rising demand for digital services.

Type Analysis

The data center construction market by type is broadly categorized into electrical construction, mechanical construc

The United States is experiencing a surge in data center construction, with the power supply under construction reaching *** gigawatts in 2024. This marks a *** percent increase from previous years, reflecting the growing demand for data storage and processing capabilities across the country. The rapid expansion of data centers underscores their crucial role in supporting the digital infrastructure that powers businesses and consumers alike. Northern Virginia leads the charge Northern Virginia has emerged as the epicenter of data center growth in the United States. In 2023, the region boasted the highest existing data center power capacity, solidifying its position as the market with the largest data center inventory in the country. Furthermore, Northern Virginia continues to dominate new construction efforts, with data centers under construction in the second half of 2024 set to add a staggering *** gigawatts of power capacity. This far outpaces other major markets such as Dallas, Austin, and NYC-NJ combined. Cloud infrastructure fuels growth The expansion of data centers is closely tied to the increasing adoption of cloud infrastructure services. Enterprise spending on cloud infrastructure services has soared in the past decade, fueled by organizations' growing demand for modern networking, storage, and database solutions. As companies continue to migrate their operations to the cloud, the need for robust data center facilities is expected to rise, further propelling the construction boom.

The North America Data Center Construction Market was valued at USD 76.56 Billion in 2024 and is expected to reach USD 110.76 Billion by 2030 with a CAGR of 6.19% during the forecast period.

The United States data center construction market size reached approximately USD 69.56 Billion in 2024. The market is estimated to grow at a CAGR of 6.30% in the forecast period of 2025-2034, reaching a value of around USD 128.14 Billion by 2034.

Northern Virginia is by far the largest data center market in the United States when measured by total inventory. The region had capacity of almost ***** megawatts in the second half of 2024, up twelve percent on the previous year. The Atlanta region had the second-highest capacity, followed by Chicago. Northern Virginia could face a slowdown in construction Situated close to major east coast urban centers, the Northern Virginia region is considered a key hyperscale data center hub. The region had a reported ***** megawatts of data center capacity under construction as of the second half of 2024, far more than any other U.S. market. However, future expansion may be hindered by shifting local infrastructure conditions, with the growing impact of large-scale facilities leading local decision makers to reassess planning legislation. Rental rates on the rise The average monthly rental rate for data center capacity in primary U.S. markets surged to over **** per kilowatt in 2024. This is partially due to increased demand, with digital transformation driving the adoption of cloud services, and with the adoption of data intensive artificial intelligence (AI) applications. However, data centers operators are also experiencing difficulties in data center construction, as rising utilities costs and supply chain continue to apply pressure.

As of the second half of 2024, ***** megawatts of data center capacity were under construction in Northern Virginia in the United States. Northern Virginia is a major hub for hyperscale data centers, though the immense pressure that such facilities are placing on local infrastructure could cause delays in further construction. The Atlanta area was the North American region with the second highest capacity under construction at ***** megawatts.

In 2023, the south of the United States was the region that spent the most on private data center construction. Private data centers construction reached a value of 7.4 billion U.S. dollars in the South of the country, but only 369 million U.S. dollars in the Northeast.

Increasing demand for cloud computing and digital transformation across industries has been driving the United States Data Center Market, as businesses and governments adopt advanced technologies to enhance operations and competitiveness. According to the analyst from Verified Market Research, the United States Data Center Market is estimated to reach a valuation of USD 189.3 Billion over the forecast period, surpassing around USD 89.2 Billion valued in 2024. The rapid expansion of the United States Data Center Market is primarily driven by the growing emphasis on edge computing to support the widespread use of IoT devices and 5G technologies. This growth has been supported by government initiatives focused on cybersecurity, data privacy, and sustainability, contributing to a projected CAGR of 9.7% from 2026 to 2032.

Data center colocation service companies have benefited from the increasing need for equipment, space and bandwidth to be rented to store servers. Over the past five years, these providers have experienced strong revenue growth as digitalization and AI continue to take hold, directly contributing to colocation services' demand. Companies that have digitized their operations now ask for bandwidth-intensive services, which ultimately require more data storage. COVID-19 accelerated this trend, with many businesses shifting to remote work and introducing new digital platforms. Over the past five years, revenue has risen at a CAGR of 4.3% to an estimated $17.1 billion, including an expected boost of 3.0% in 2025 alone. Despite rising wage and energy costs, however, industry profit has remained steady during the current period, only slightly fluctuating. With significant investments allocated to AI data center construction during the current period, providers are expanding their presence and have captured demand for third-party IT infrastructure management. As these trends have unfolded, companies within the industry are adjusting to technological innovation, shifting demand conditions and rising operating costs. Meanwhile, cyberattacks continue to threaten the reputation of many colocation providers, leading to significant defense investment. As the capacity requirements for data storage have increased, so has competition from technology conglomerates that use in-house operations to store servers. Still, demand for outsourced colocation services has grown during the period. Revenue is expected to continue rising over the next five years, albeit at a slightly slower pace. Stable growth in corporate profit and initiatives to enhance digital platforms will likely support revenue growth as companies can afford more data storage, increasing the need for colocation services. However, intensifying competition is expected to temper revenue growth as declines in the price of computers and peripheral equipment encourage companies to store data in-house. While government support will lead to expedited permitting and investments, support for data centers will continue to vary state to state as advanced AI facilities consume more power moving foward. Overall, revenue is anticipated to climb at a CAGR of 3.3% to an estimated $20.0 billion over the next five years.

The US data center colocation market size was valued at USD 24.94 billion in 2024 and is expected to reach USD 57.32 billion by 2030, growing at a CAGR of 14.88% during the forecast period.

Data Infrastructure Construction Market Outlook

The global data infrastructure construction market size was valued at USD 230 billion in 2023 and is anticipated to reach USD 450 billion by 2032, growing at a CAGR of 7.5% during the forecast period. The burgeoning demand for robust and scalable data storage solutions alongside the rapid advancements in cloud computing and network infrastructure are the primary growth factors propelling this market.

One of the key growth drivers in this market is the exponential increase in data generation. With the proliferation of IoT devices, smart technologies, and mobile applications, the volume of data being produced globally is staggering. Companies are increasingly investing in data centers and cloud infrastructure to store, process, and analyze this vast amount of information efficiently. Additionally, the rise of big data analytics has further accentuated the need for advanced data infrastructure, as organizations seek to leverage data-driven insights for strategic decision-making.

Another significant growth factor is the adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML). These technologies require substantial computational power and storage capacities, thus driving the demand for sophisticated data infrastructure. Furthermore, the shift towards digital transformation across various industries is compelling companies to modernize their IT infrastructure, creating substantial opportunities in data infrastructure construction. The emphasis on seamless digital experiences and rapid technological advancements are fueling investments in state-of-the-art data centers and network facilities.

The increasing focus on regulatory compliance and data security is also contributing to market growth. With stringent regulations such as GDPR in the European Union and CCPA in California, companies are under immense pressure to ensure data privacy and protection. This has led to significant investments in secure and compliant data infrastructure, which not only meets regulatory requirements but also enhances overall data governance frameworks. The need to safeguard sensitive information and mitigate risks associated with cyber threats is driving the construction of highly secure and resilient data infrastructure.

Datacenter Infrastructure Service plays a pivotal role in the rapidly evolving landscape of data infrastructure construction. As businesses increasingly rely on data-driven operations, the need for efficient and reliable data centers has become paramount. These services encompass a wide range of activities, including the design, deployment, and management of data center facilities. By ensuring optimal performance, scalability, and security, Datacenter Infrastructure Service providers enable organizations to focus on their core business objectives while leveraging cutting-edge technology solutions. The integration of advanced cooling systems, energy-efficient power supplies, and robust security measures are essential components of these services, ensuring that data centers operate seamlessly and sustainably.

In terms of regional outlook, North America dominates the data infrastructure construction market, accounting for the majority of the market share. The presence of leading technology companies and the early adoption of innovative technologies contribute to this region's prominent position. However, Asia Pacific is expected to exhibit the highest growth rate during the forecast period, driven by rapid digitization and the growing demand for data storage solutions. The increasing investments in data centers and cloud infrastructure in countries like China and India are significant growth drivers for this region. Europe and Latin America also present substantial opportunities, with ongoing digital transformation initiatives and technological advancements supporting market growth.

Component Analysis

The data infrastructure construction market can be segmented based on components into hardware, software, and services. The hardware segment encompasses various physical components such as servers, storage devices, and networking equipment, which form the backbone of data infrastructure. This segment is poised for significant growth due to the continuous advancements in hardware technologies, which enhance performance, efficiency, and capacity. The integration of cutting-edge processors, high-capacity storage devices, and advanced networking solution

The Latin American data center construction market is experiencing robust growth, projected to reach a market size of $5.14 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) exceeding 8.71% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the burgeoning digital economy across the region is driving increased demand for robust and reliable data storage and processing capabilities. Secondly, significant investments in digital infrastructure by governments and private companies are supporting the construction of new data centers and upgrades to existing facilities. Furthermore, the rising adoption of cloud computing and the expansion of e-commerce are contributing to this growth. The market is segmented by infrastructure type (electrical, mechanical, and general construction), tier type (Tier I-IV), enterprise size (small, medium, and large), and end-user industry (banking, IT, government, healthcare, etc.). Brazil, Mexico, and Colombia are expected to be leading markets within Latin America due to their established economies and burgeoning tech sectors. Competitive pressures are shaping the market landscape with a range of companies including global and regional players involved in construction and data center infrastructure provision. The growth trajectory is, however, not without challenges. While significant opportunities exist, restraints include potential infrastructure limitations in some areas, regulatory hurdles, and the need for skilled labor to manage and maintain these complex facilities. Furthermore, the market is susceptible to economic fluctuations affecting investment levels. The market is expected to see continued growth through strategic partnerships and mergers and acquisitions within the industry. The focus on sustainability and energy efficiency in data center design and construction will also be a significant driver influencing the market, with companies increasingly prioritizing eco-friendly solutions. The consistent growth in digital adoption across various sectors indicates the Latin American data center construction market will continue its upward trajectory well into the projected forecast period. Recent developments include: January 2023: The Santos Port Authority (SPA) is planning to have a new data center constructed by the Brazilian company Zeittec. Zeittec and the SPA, the state-owned organization in charge of running the Port of Santos in the state of So Paulo, have agreed to the terms of a building agreement for a new data center. It is anticipated that work on the Safe Room will begin in January and be finished in the middle of 2023. According to the firm, the SPA Safe Room will be safe from both break-ins and fires thanks to walls that have been certified by NBR 10.636 as being able to resist fire for up to 120 minutes (CF 120). It will have OM4 laser multimode optical fibers and CAT 6A structured cabling., December 2022: Aligned, which is financed by Macquarie Group, intends to acquire Odata. The parties are in "advanced discussions" about a deal that would value Odata at roughly $1.8 billion, including debt, and may be revealed as soon as next week. The company announced at the opening of its first Mexican facility earlier this year that it would soon start building a second 30MW data center in Querétaro, and Peru would be its next market.. Key drivers for this market are: Growth in Network Connectivity and Increased Adoption of Digital Transformation Related Technologies in the Region, Favorable tax Incentive Structure Introduced by Local Governments has Led to the Higher Participation from International Players; Ongoing Consolidation Efforts by Major Data Center Construction Companies to Aid their Expansion Activities; Growing Awareness on Modular Deployments and Increasing Rack Density. Potential restraints include: Integration issues with traditional systems, Data quality and accuracy issues. Notable trends are: IT and Telecommunications Segment to Hold a Significant Share of the Market.

The global market size of Latin Data Center Construction is $XX million in 2018 with XX CAGR from 2014 to 2018, and it is expected to reach $XX million by the end of 2024 with a CAGR of XX% from 2019 to 2024.
Global Latin Data Center Construction Market Report 2019 - Market Size, Share, Price, Trend and Forecast is a professional and in-depth study on the current state of the global Latin Data Center Construction industry. The key insights of the report:
1.The report provides key statistics on the market status of the Latin Data Center Construction manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry.
2.The report provides a basic overview of the industry including its definition, applications and manufacturing technology.
3.The report presents the company profile, product specifications, capacity, production value, and 2013-2018 market shares for key vendors.
4.The total market is further divided by company, by country, and by application/type for the competitive landscape analysis.
5.The report estimates 2019-2024 market development trends of Latin Data Center Construction industry.
6.Analysis of upstream raw materials, downstream demand, and current market dynamics is also carried out
7.The report makes some important proposals for a new project of Latin Data Center Construction Industry before evaluating its feasibility.
There are 4 key segments covered in this report: competitor segment, product type segment, end use/application segment and geography segment.
For competitor segment, the report includes global key players of Latin Data Center Construction as well as some small players.
The information for each competitor includes:
* Company Profile
* Main Business Information
* SWOT Analysis
* Sales, Revenue, Price and Gross Margin
* Market Share

For product type segment, this report listed main product type of Latin Data Center Construction market
* Product Type I
* Product Type II
* Product Type III

For end use/application segment, this report focuses on the status and outlook for key applications. End users sre also listed.
* Application I
* Application II
* Application III

For geography segment, regional supply, application-wise and type-wise demand, major players, price is presented from 2013 to 2023. This report covers following regions:
* North America
* South America
* Asia & Pacific
* Europe
* MEA (Middle East and Africa)
The key countries in each region are taken into consideration as well, such as United States, China, Japan, India, Korea, ASEAN, Germany, France, UK, Italy, Spain, CIS, and Brazil etc.

Reasons to Purchase this Report:
* Analyzing the outlook of the market with the recent trends and SWOT analysis
* Market dynamics scenario, along with growth opportunities of the market in the years to come
* Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
* Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
* Market value (USD Million) and volume (Units Million) data for each segment and sub-segment
* Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
* Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
* 1-year analyst support, along with the data support in excel format.
We also can offer customized report to fulfill special requirements of our clients. Regional and Countries report can be provided as well.