Data Center Construction Market Size, Share, Growth Analysis, By Type(Tier I, Tier II, Tier III, Tier IV), By Application(Electrical Infrastructure and Mechanical Infrastructure), By Region - Industry Forecast 2024-2031

Data Center Construction Market size was valued at USD 213.55 billion in 2022 and is poised to grow from USD 229.57 billion in 2023 to USD 409.43 billion by 2031, growing at a CAGR of 7.5% during the forecast period (2024-2031).

The prominent companies in data center construction are increasingly emphasizing incorporating advanced technologies.  It includes artificial intelligence, machine learning (ML), and IoT. These advanced technologies have the potential to improve the efficiency and sustainability of data centers. Many organizations in the sector are investing in research and development (R&D) to enhance energy-efficient construction procedures. They are primarily focusing on the utilization of renewable energy sources and innovative cooling systems to reduce carbon footprints. Furthermore, they are also increasing their market presence with the help of strategic alliances and acquisitions. This tactic is also helping them to make more profits with emerging growth potential of markets. 'Turner Construction Company (US)', 'DPR Construction (US)', 'AECOM (US)', 'Skanska AB (Sweden)', 'Jacobs Engineering Group Inc. (US)', 'Clark Construction Group, LLC (US)', 'Hensel Phelps Construction Co. (US)', 'Structure Tone (US)', 'Fluor Corporation (US)', 'Mortenson (US)', 'ISG plc (UK)', 'Balfour Beatty plc (UK)', 'M. A. Mortenson Company (US)', 'Corgan (US)', 'NCC AB (Sweden)', 'Holder Construction Company (US)', 'Gilbane Building Company (US)', 'HITT Contracting Inc. (US)', 'The Whiting-Turner Contracting Company (US)', 'PCL Construction (Canada)'

The emergence of cloud computing services has boosted the necessity for more data centers to provide these services. Many companies are moving towards cloud-based solutions, which is rising the demand for data center construction. This is because of its advantages like better scalability, flexibility, and cost-effectiveness. This transformation to cloud computing has also increased the demand for hyperscale data centers that can easily manage huge numbers of virtualized workloads. 

Emergence of Edge Data Centers: The growth of edge computing has accelerated the advancement of edge data centers. These centers are deliberately located closer to end-users and IoT devices for reducing latency and enhancing performance. These smaller, distributed facilities allow real-time data processing. They also support latency-sensitive applications such as self-driving cars and augmented reality. The edge data centers are also constructed with flexibility, energy efficiency, and modular designs in mind due to the changing edge computing needs.

North America is dominating the data center construction market with the largest market share. The growth of data center construction in North America is increasing exponentially. This is because the providers are developing advanced data centers with sustainable building. They are also trying to offer operations and business procedures that can fulfill the growing demands of hyperscale data centers. In January 2024, EdgeCore Digital Infrastructure made an announcement about completing a USD 1.9 billion debt financing agreement for their Mesa, Arizona, data center campus. Along with the completion of this deal, the water-neutral, LEED-certified campus will extend over 3.1 million square feet of space. It will also sustain 450 MW of crucial load and fulfill the requirement of present and future clients.