The global data center construction market size was valued at USD 91.86 billion in 2024 and is projected to reach USD 214.16 billion by 2030, growing at a CAGR of 15.15% from 2024 to 2030.

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Data Center Construction Market Size 2025-2029

The data center construction market size is valued to increase USD 41 billion, at a CAGR of 8.8% from 2024 to 2029. Rising demand for data center colocation facilities will drive the data center construction market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 32% growth during the forecast period.
By Application - Enterprise segment was valued at USD 23.20 billion in 2023
By Type - Electrical construction segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 70.71 billion
Market Future Opportunities: USD 41.00 billion
CAGR : 8.8%
Europe: Largest market in 2023

Market Summary

The market is a dynamic and continuously evolving sector, driven by the rising demand for colocation facilities and the growing focus on constructing energy-efficient, or 'green,' data centers. According to recent reports, the global data center colocation market is projected to reach a 35% market share by 2025, underscoring its significant growth potential. However, the industry faces challenges such as high power consumption, which accounts for approximately 2% of global electricity use. To address this issue, there is a push towards adopting advanced core technologies, including renewable energy sources and energy-efficient cooling systems.
Additionally, regulatory compliance and regional variations add complexity to the market landscape. For instance, European data centers must adhere to strict energy efficiency regulations, while the Asia Pacific region is witnessing significant growth due to increasing digital transformation initiatives.

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

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How is the Data Center Construction Market Segmented and what are the key trends of market segmentation?

The data center construction industry 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


Type

  Electrical construction
  Mechanical construction
  General construction


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

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

In today's digital economy, the demand for robust data center infrastructure continues to escalate as businesses and consumers generate an unprecedented volume of structured and unstructured data. Approximately 60% of enterprises worldwide are reported to have increased their data center capacity in the last three years, while 40% plan to do so in the next two years. The need for high-performance computing systems has become crucial to support the extensive transformation of existing data center infrastructure, including network, cooling, and storage. Environmental monitoring, redundancy and failover, HVAC infrastructure design, security access control, risk assessment mitigation, generator backup power, IT infrastructure deployment, structural engineering design, remote hands support, project timeline management, server rack density, capacity planning strategies, raised floor systems, permitting and approvals, mechanical system design, physical security measures, construction cost estimation, disaster recovery planning, cable management strategies, network infrastructure cabling, building automation systems, power usage effectiveness, critical infrastructure design, precision cooling systems, thermal management solutions, sustainability certifications, electrical system design, energy efficiency metrics, fire suppression systems, uninterruptible power supply, power distribution units, and building code compliance are all integral components of modern data centers.

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The Enterprise segment was valued at USD 23.20 billion in 2019 and showed a gradual increase during the forecast period.

As businesses continue to prioritize digital transformation, the market is expected to witness significant growth. According to recent estimates, the market is projected to expand by 18% in the upcoming year, with a further 21% increase anticipated within the next five years. These figures underscore the continuous evolution and expansion of the data center industry, driven by the increasing demand for scalable and efficient infrastructure solutions.

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Regional Analysis

Europe is estimated to contribute 32% to the growth of the global marke

In 2025, Tokyo was ranked as the most expensive market worldwide for data center construction. The cost per watt in the Japanese capital was reported at ******U.S. dollars, ahead of Singapore at ***** U.S. dollars. A range of local factors such as land prices, labor availability, and power costs can heavily impact data center construction pricing.

Data Center Construction Market size was valued at USD 23.76 Billion in 2024 and is projected to reach USD 42.05 Billion by 2032, growing at a CAGR of 7.40% from 2026 to 2032.Exponential Growth in Data Generation and Cloud Services: The primary catalyst for the construction market is the sheer scale of data generation and consumption. As IDC reports, global data creation is surging toward 181 zettabytes by 2025, creating an unprecedented and immediate need for physical storage capacity. This massive data volume, coupled with the rapid enterprise shift to the cloud where over 75% of workloads are expected to be cloud-based by the end of 2023 compels hyperscale providers (like Amazon, Google, and Microsoft) to perpetually build new facilities.

The global data center construction market size reached USD 59.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 108.1 Billion by 2033, exhibiting a growth rate (CAGR) of 6.77% during 2025-2033. The escalating demand for robust digital infrastructure and rising investments in electrical and mechanical construction to enhance efficiency, reliability, and sustainability across various regions are some of the factors impelling the market growth.

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), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

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

Introduction

According to Market.us, The global data center construction market is expected to reach USD 453.5 Billion by 2033, representing a substantial Compound Annual Growth Rate (CAGR) of 6.7%. This growth trajectory reflects a significant increase from the valuation of USD 237.1 Billion in 2023.

The construction of data centers has become a pivotal aspect of modern infrastructure, catering to the exponentially growing demand for data processing and storage, driven by the surge in cloud computing, big data analytics, and the proliferation of digital services. The data center construction market is witnessing robust growth, characterized by the development of facilities that are not only scalable and efficient but also adhere to stringent standards of reliability and security. This expansion is propelled by the increasing reliance of businesses and governments on digital platforms, necessitating the availability of robust data handling capabilities.

From an analytical standpoint, several factors are driving the growth of the data center construction market. Firstly, the digital transformation initiatives across various sectors are augmenting the need for data centers, as organizations seek to harness the power of data for competitive advantage. Secondly, the advent of technologies such as 5G, Internet of Things (IoT), and artificial intelligence (AI) is further amplifying the demand for data processing power, thus fueling the construction of new data centers. Additionally, the emphasis on data sovereignty and the need for local data processing in compliance with regulatory requirements are prompting companies to invest in regional data centers, contributing to the market's expansion.

Opportunities within the data center construction market are vast and varied. There is a growing interest in green data centers, driven by the global push towards sustainability. This shift offers substantial opportunities for innovations in energy-efficient design, renewable energy integration, and advanced cooling systems, presenting a significant area for development and investment. Furthermore, the increasing complexity of data center architecture, coupled with the demand for high levels of security and reliability, opens avenues for advancements in construction methodologies, materials, and technologies. The adoption of modular and prefabricated data centers is another area of opportunity, offering flexibility and scalability while reducing construction time and costs.

The global data center construction market size was worth over USD 182.51 billion in 2025 and is poised to grow at a CAGR of over 9.2%, reaching USD 440.06 billion revenue by 2035, impelled by the expansion of cloud services.

The global data center construction market size is set to witness remarkable growth, with investments projected to surge from USD 61.84 billion in 2024 to USD 113.62 billion by 2029, at a robust CAGR of 10.67%.

Data Center Construction Market size is growing with a CAGR of 8.2% in the prediction period & it crosses USD 126,713.7 Mn by 2032 from USD 72,760.6 Mn in 2025.

Snapshot img { margin: 10px !important; } Outlook of the global data center design marketTechnavio’s market research analyst has estimated the global data center design market to grow at an impressive CAGR of over 19% by 2020. The market will exhibit significant growth potential over the forecast period owing to the increased construction of data centers globally. Recently, it has been observed that modern data center designs focus primarily on improving the efficiency of the facilities to offer multiple services and meet the operational needs of various enterprises. Furthermore, factors like the augmented construction of green data centers will also aid in the growth of this market during the estimated period. Currently, data center operators are facing issues of increased electricity consumption, high carbon emissions, and inadequate power and cooling infrastructure to support the growing operational requirements. Consequently, many design vendors are collaborating with data center operators to construct green data center facilities to deal with such issues. An efficient data center design considers the present and future IT load, power and cooling capacity required, and space for future extension.The growing adoption of the software-defined data center (SDDC) will be the key driver for the growth of this market. An SDDC is a data center where the infrastructure is delivered as a service through virtualization of the physical infrastructure. In such a data center, the hardware infrastructure is managed through intelligent software systems. The ability of such as data center to improve efficiency, lower costs, provide applications in minutes, offer higher availability and better security, and create an opportunity for the delivery of workloads through the cloud will result in its augmented construction during the forecasted period.Segmentation by design type and analysis of the data center design marketMEP design IT infrastructure designIn this market study, analysts have estimated the IT infrastructure design segment to grow profoundly at a CAGR of over 23% until 2020. IT infrastructure is necessary for offering high availability of services to end users and consists of servers, storage, and network infrastructure. In terms of storage, IT infrastructure design considers the placement of DAS, SAN, and NAS storage systems. It also examines network infrastructure, including network switches at the core, aggregation, and access layers.Geographical segmentation of the data center design marketAmericas APAC EMEAThe Americas is leading this market in terms of data center construction. In this region, the number of operational data centers is higher when compared to any other region in the world. The market for data center construction in the Americas is still growing with new facilities being powered by renewable energy sources and colocation service providers extending existing facilities.Competitive landscape and key vendorsThe global data center design market is competitive as many infrastructure vendors are consistently making innovations in their product lines to improve efficiency. The vendors that have the capability to develop multi-mode UPS systems, renewable energy sources, and rack-embedded PDUs to improve the efficiency of data center facilities are anticipated to gain maximum market traction during the estimated period.Key vendors in this market are -Corgan Environmental Systems Design Future-tech Gensler Glumac Syska HennessyOther prominent vendors analyzed in this market study are Alfa Tech Consulting Enterprises, Black & Veatch, California Data Center Design, CSF Group, Data Specialties, DataCenterAndColocation, Edarat Group, Global Data Services Limited (GDS), Hankins & Anderson, Huawei, IBM, ISG, Leading Edge Design, Nova Corp, Panduit, Plannet, PowerCon Associates, PTS Design & Engineering, Rubicon Professional Services, Siemens, and TechXact.Key questions answered in the report includeWhat will the market size and the growth rate be in 2020? What are the key factors driving the global data center design market? What are the key market trends impacting the growth of the global data center design market? What are the challenges to market growth? Who are the key vendors in the global data center design market? What are the market opportunities and threats faced by the vendors in the global data center design market? Trending factors influencing the market shares of the Americas, APAC, and EMEA. What are the key outcomes of the five forces analysis of the global data center design market?Technavio also offers customization on reports based on specific client requirement.Related reportsGlobal Data Center Market 2015-2019 Global Data Center Power Market 2015-2019 Global Data Center Construction Market 2015-2019 Global Data Center Rack Market 2015-2019 Data Center Construction Market- Global Report Analysis and Forecast 2015-2019 Global Data Center IT Equipment Market 2015-2019

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Data Center General Construction Market Size 2025-2029

The data center general construction market size is valued to increase by USD 9.3 billion, at a CAGR of 8.7% from 2024 to 2029. Increase in investment in data center will drive the data center general construction market.

Market Insights

North America dominated the market and accounted for a 37% growth during the 2025-2029.
By End-user - BFSI segment was valued at USD 3.69 billion in 2023
By Type - Base building shell construction segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 105.48 million 
Market Future Opportunities 2024: USD 9302.30 million
CAGR from 2024 to 2029 : 8.7%

Market Summary

The market is experiencing significant growth, driven by increasing investment in data infrastructure and the expanding digital economy. With businesses relying more on technology for operations and customer engagement, the demand for reliable and efficient data centers is on the rise. One trend shaping the market is the growing focus on constructing green data centers, which prioritize energy efficiency and sustainability. Another development is the emergence of containerized and micro mobile data centers, offering flexibility and scalability for businesses with evolving IT needs. For instance, a global logistics company is optimizing its supply chain by implementing a containerized data center solution. This enables the company to store and process data closer to its distribution centers, reducing latency and improving operational efficiency. As regulatory compliance becomes more stringent, data center operators must prioritize security and resilience, further fueling the demand for advanced construction technologies and solutions. In conclusion, the market is witnessing a surge in demand due to the digital transformation and the need for secure, efficient, and sustainable data infrastructure. Companies are exploring innovative solutions, such as green data centers and containerized solutions, to meet the evolving needs of their businesses.

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

Get Key Insights on Market Forecast (PDF) Request Free SampleThe market continues to evolve, with a focus on enhancing operational efficiency and sustainability. One significant trend is the prioritization of Power Usage Effectiveness (PUE), a metric measuring the total power used by a data center, versus the power delivered to the IT equipment. Companies are investing in HVAC maintenance contracts, mechanical room design, and cooling capacity planning to optimize PUE and reduce energy consumption. Another trend is the integration of green building certification, such as LEED, into data center construction. This approach not only contributes to environmental sustainability but also aligns with corporate social responsibility initiatives. For instance, a study by the U.S. Green Building Council revealed that certified buildings consume 25% less energy on average compared to non-certified ones. Moreover, data centers are increasingly adopting vibration control systems, noise reduction strategies, and fire alarm systems to ensure electrical safety standards and network cabling standards. These investments not only contribute to a reliable and efficient infrastructure but also help mitigate potential risks and downtime. Intrusion detection systems, access card systems, and CCTV surveillance systems are essential components of data center security, with disaster recovery planning and humidity control systems further ensuring business continuity. As the data center landscape continues to evolve, companies must stay informed of the latest trends and best practices to make informed decisions regarding compliance, budgeting, and product strategy.

Unpacking the Data Center General Construction Market Landscape

In the dynamic data center construction market, thermal management solutions and environmental monitoring systems have gained significant traction, with over 60% of new data centers adopting these technologies. This investment in advanced cooling systems leads to a 30% reduction in energy consumption, resulting in substantial cost savings and improved ROI. Building permit acquisition and hvac system design are critical components of the construction process, with over 80% of projects requiring extensive structural reinforcement and electrical power capacity upgrades. Water leak detection and cable management systems are essential for maintaining data center infrastructure, ensuring business continuity and reducing downtime. Remote monitoring systems, precision cooling systems, and emergency power systems are also integral components, enabling real-time risk mitigation strategies and ensuring compliance with industry standards. Construction project ma

The global data center construction market size reached approximately USD 66.23 Billion in 2024. The market is projected to grow at a CAGR of 7.20% between 2025 and 2034, reaching a value of around USD 132.74 Billion by 2034.

As of November 2025, there were a reported 4,165 data centers in the United States, the most of any country worldwide. A further 499 were located in the United Kingdom, while 487 were located in Germany. What is a data center? Data centers are facilities designed to store and compute vast amounts of data efficiently and securely. Growing in importance amid the rise of cloud computing and artificial intelligence, data centers form the core infrastructure powering global digital transformation. Modern data centers consist of critical computing hardware such as servers, storage systems, and networking equipment organized into racks, alongside specialized secondary infrastructure providing power, cooling, and security. AI data centers Data centers are vital for artificial intelligence, with the world’s leading technology companies investing vast sums in new facilities across the globe. Purpose-built AI data centers provide the immense computing power required to train the most advanced AI models, as well as to process user requests in real time, a task known as inference. Increasing attention has therefore turned to the location of these powerful facilities, as governments grow more concerned with AI sovereignty. At the same time, rapid data center expansion has sparked a global debate over resource use, including land, energy, and water, as modern facilities begin to strain local infrastructure.

Mexico Data Center Construction Market size was valued at USD 2.00 Billion in 2024 and is expected to reach USD 6.50 Billion by 2032, growing at a CAGR of 15.8% from 2026 to 2032.Mexico Data Center Construction Market: Definition/ OverviewData center construction refers to the process of designing, building, and equipping facilities that house an organization’s IT infrastructure, including servers, storage systems, and networking hardware. These facilities are designed to store, process, and manage vast amounts of data, ensuring continuous availability, security, and high performance. Data centers are critical to supporting cloud computing, big data analytics, enterprise IT systems, and internet services.The growing demand for digital transformation, cloud computing, AI, and IoT applications is accelerating data center construction across the globe. In the future, as data traffic and the need for high-performance computing continue to rise, data centers will evolve to incorporate advanced technologies like edge computing, renewable energy sources, and greater automation, positioning them as the backbone of digital economies worldwide.

Discover the booming global data center construction market! This comprehensive analysis reveals key trends, growth drivers, leading companies, and regional market shares from 2019-2033, offering insights into this rapidly expanding sector. Learn about the impact of cloud computing, AI, and digital transformation on data center build-out.

Data Center Market size was valued at USD 71.38 Billion in 2024 and is projected to reach USD 135.48 Billion by 2032, growing at a CAGR of 9.2% from 2026 to 2032.Rising Adoption of Cloud Computing and Virtualization: The shift from on-premise IT infrastructure to cloud computing is a primary catalyst for the data center market. Businesses are increasingly leveraging cloud services for their flexibility, scalability, and cost-effectiveness. This means they are no longer building their own physical data centers; instead, they are renting virtual resources from cloud providers like Amazon Web Services (AWS) and Microsoft Azure.Growing Demand for Data Storage and Processing: The explosion of Big Data and the Internet of Things (IoT) has created an insatiable appetite for data storage and processing power. IoT devices, from smart home gadgets to industrial sensors, generate massive, continuous streams of data that must be collected, processed, and analyzed in real time.

Market Research Intellect's Data Center Construction Market Report highlights a valuation of USD 200 billion in 2024 and anticipates growth to USD 350 billion by 2033, with a CAGR of 7.5% from 2026-2033.Explore insights on demand dynamics, innovation pipelines, and competitive landscapes.