Data Center Construction Market Report and Forecast 2024-2032

According to this report, the global data center construction market size reached a value of USD 66.23 billion in 2023. Aided by the accelerating digital transformation across industries and the growing demand for data storage and processing capabilities, the market is projected to further grow at a CAGR of 7.2% between 2024 and 2032 to reach a value of USD 123.82 billion by 2032.

Data center construction involves designing and building specialized facilities that house computing systems, networking equipment, and storage infrastructure. These data centers form the backbone of modern digital ecosystems, supporting cloud computing, internet services, data storage, and processing.

The growing demand for digital services is fuelling the need for robust data infrastructure, thereby boosting the data center construction market expansion. With industries such as healthcare, finance, retail, and telecommunications increasingly relying on data-driven operations, there is a significant emphasis on the expansion of data center facilities. Cloud computing giants like Amazon Web Services, Google Cloud, and Microsoft Azure continue to invest heavily in data center construction to accommodate the soaring demand for cloud services and solutions.

One of the primary factors driving the global data center construction market growth is the surge in demand for cloud computing. As businesses worldwide move to adopt cloud technologies, the need for large-scale data centers to support these services has grown exponentially. Cloud service providers are expanding their global footprint by constructing data centers across various regions to ensure low-latency services and improve data redundancy and availability.

Additionally, the rise of big data analytics has created a need for high-performance computing environments. Data centers provide the necessary infrastructure to process vast amounts of data, facilitating the real-time analysis that businesses require to make informed decisions. As a result, sectors like finance, healthcare, and retail are driving increased investment in data center construction. This is fuelling the data center construction market demand.

Another critical driver of the market is the rapid expansion of the Internet of Things (IoT). With billions of connected devices generating unprecedented amounts of data, the demand for data storage and processing capabilities has risen significantly. This has led to the construction of edge data centers that are strategically located closer to the source of data generation, enabling faster processing and lower latency.

The growing focus on sustainability and energy efficiency is shaping the data center construction market dynamics. Data centers are known for their significant energy consumption, with cooling systems accounting for a substantial portion of this usage. As environmental concerns gain momentum, there is an increasing emphasis on building energy-efficient data centers that use renewable energy sources and advanced cooling technologies. This trend is expected to accelerate the adoption of green data centers, which minimize environmental impact while optimizing operational efficiency.

North America currently holds the largest portion of the data center construction market share, driven by the presence of major technology companies and cloud service providers in the region. The United States, in particular, is a hub for data center construction, with large investments in both hyperscale and colocation facilities. The rapid expansion of cloud services and the growing demand for digital infrastructure in sectors such as healthcare, finance, and retail are key contributors to the region's dominance.

As per the data center construction market analysis, the Asia Pacific region is poised for substantial growth during the forecast period, driven by the rapid digitalization of economies like China, India, and Japan. The growing adoption of cloud services, coupled with the increasing number of internet users, is expected to fuel demand for data center construction in this region. Additionally, government initiatives promoting digital transformation and smart city development are contributing to market expansion in Asia-Pacific.

The data center construction market value is increasing as a result of the increasing demand for cloud computing, big data analytics, and IoT applications. As organizations across various industries continue to invest in digital infrastructure, the need for data centers that can support these services will rise. Additionally, the growing focus on sustainability and energy efficiency will drive the adoption of green and modular data center construction practices, further shaping the market's trajectory favourably.

Market Segmentation

The market can be divided based on infrastructure, tier type, size, end use, and region.

Market Breakup by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Infrastructure

Market Breakup by Tier Type

• Tier I and II
• Tier III
• Tier IV

Market Breakup by Size

• Small and Medium Scale Data Center
• Large Scale Data Center

Market Breakup by End Use

• Banking, Financial Services and Insurance
• IT and Telecommunications
• Government and Defence
• Healthcare
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global data center construction market. Some of the major players explored in the report are as follows:

• AECOM
• HITT Contracting Inc.
• Jacobs Solutions Inc.
• Hensel Phelps
• IBM Corp.
• PCL Constructors Inc.
• Skanska AB
• Clune Construction Company
• J.E. Dunn Construction Company
• Turner Construction Company
• Holder Construction Group, LLC
• DPR Construction
• Others