Data Center Construction Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The data center construction market size has grown strongly in recent years. It will grow from $260.49 billion in 2024 to $277.18 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to growing demand for data storage and processing, rising investments in digital infrastructure, globalization, demand for colocation data centers.

The data center construction market size is expected to see strong growth in the next few years. It will grow to $360.41 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to growth of the digital economy, expanding global data center, shift to cloud computing, growing demand for edge data centers, 5g rollout. Major trends in the forecast period include sustainability and green design, modular data centers, security and compliance, data center-as-a-service.

The increase in data usage within cloud computing is anticipated to be a significant driver for the expansion of the data center construction market in the foreseeable future. Data usage, in this context, refers to the amount of data transferred to and from devices. The growing demand for data storage and processing calls for the construction of additional data center facilities. For instance, a legal technology survey conducted by the American Bar Association in November 2022 reported a substantial increase in overall cloud data usage, rising from 60% in 2021 to 70% in 2022. Furthermore, solo cloud users increased from 52% to 84% within a year. This data underscores how the growing demand for data is a primary factor fueling the growth of the data center construction market.

The growing demand for cloud services is expected to drive the expansion of the data center construction market. Cloud services encompass a wide range of on-demand computing resources and applications delivered over the internet. The rapid growth of digital data, along with the rise of cloud computing, big data analytics, and Internet of Things (IoT) applications, has significantly increased the need for data storage. This surge in demand for cloud services is propelling data center construction, as providers work to meet user requirements while ensuring high levels of performance, reliability, and security. For example, in June 2024, AAG IT Services, a UK-based provider of IT and digital transformation services, reported that Google Cloud generated $6.87 billion in revenue in Q3 2022, up from $4.99 billion year-over-year. By Q4 2022, Google Cloud’s revenue had risen to $7.32 billion, reflecting a 32% year-over-year growth. As a result, the growing demand for cloud services is expected to drive the growth of the data center construction market.

Major players operating in the data center construction market are concentrating on the technological advancement of products by implementing innovations such as Universal Data Hall Design (UDHD) to improve their market share. Universal Data Hall Design (UDHD)) is a data center design that includes typical colocation components while emphasizing flexibility and scalability. UDHD has a slab floor with perimeter cooling, making it suited for large full-hall high-performance computing (HPC) applications deployments. For instance, in August 2023, DataBank Holdings Ltd., a US-based provider of information management services, launched Universal Data Hall Design (UDHD), a new innovative approach for high-density data center construction to support high-performance computing (HPC). Universal Data Hall Design (UDHD) allows HPC by giving enterprises the flexibility to handle whatever deployment their workloads need.

In August 2024, Turner Construction, a US-based construction services company, acquired Dornan Engineering Group for an undisclosed amount. This acquisition enhances Turner's business scale in Europe, allowing for the delivery of a broader portfolio and a wider range of services. With Dornan's complementary capabilities, Turner sees a significant opportunity to expand its presence in Europe and strengthen its relationships with both new and existing clients. Dornan Engineering Group is an Ireland-based company specializing in data center construction.

Major companies operating in the data center construction market are Google LLC, Amazon Web Services Inc., Microsoft Azure, The International Business Machines Corporation, Schneider Electric SE, Meta Platforms Inc., NTT Ltd., Turner Construction Co, STO Building Group Inc., Equinix Inc., DPR Construction Inc., Iron Mountain Inc., Digital Realty Trust Inc., Stantec Inc., SAS Institute Inc., Zayo Group Holdings Inc., Gensler, CyrusOne LLC, Hensel Phelps Construction Co., Cyxtera Technologies LLC, Fortis Construction Inc., QTS Realty Trust Inc., HITT Contracting Inc., TierPoint LLC, Sabey Data Center Properties LLC, Flexential Corp., Holder Construction Group LLC, Cologix Inc., Alfa Tech Consulting Engineers Inc., ipSpace.net AG.

North America was the largest region in the data center construction market in 2024. The regions covered in data center construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center construction market includes revenues earned by entities by planning, developing and providing construction assistance for extremely profitable and effective next-generation data center. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center construction market also includes sales of generators, power infrastructure, cooling infrastructure and physical security. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Data center construction encompasses a series of essential procedures for establishing a data center facility designed to meet the operational environment requirements and building standards. It involves the planning and construction of a space capable of accommodating computing systems, storage devices, and other essential components necessary for data processing, storage, and communication.

The primary categories of data center construction include small-scale data centers, medium-scale data centers, and large-scale data centers. Small data centers refer to server storage spaces, rooms, and regional information centers with a computing floor area of less than 5,000 square feet. These data centers feature key infrastructure components such as electrical infrastructure, networking infrastructure, and others, complete with power distribution and cooling systems. They find application in various sectors, including banking, financial services, insurance (BFSI), energy, government, healthcare, manufacturing, IT and telecom, and more.

The data center construction market research report is one of a series of new reports that provides data center construction market statistics, including data center construction industry global market size, regional shares, competitors with a data center construction market share, detailed data center construction market segments, market trends and opportunities and any further data you may need to thrive in the data center construction industry. This data center construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.