A data center construction project involves building specialized facilities designed to house critical computing infrastructure, ensuring reliable access to applications, data, and digital services. These facilities must be meticulously engineered to support high-performance IT operations, with key construction elements including power supply systems, cooling infrastructure, physical security, and scalable architectural layouts. The foundation of data center construction lies in integrating robust mechanical, electrical, and plumbing (MEP) systems with cutting-edge IT components such as servers, storage devices, routers, firewalls, and switches.

As the demand for hyperscale capacity continues to grow, industry players are making substantial investments in next-generation facilities to meet global data needs. For instance, in July 2025, KKR and Energy Capital Partners (ECP) announced a USD 4 billion project to construct a 190 MW hyperscale data center near Dallas, leased to a major tech client. The plan is part of a larger USD 50 billion roadmap. CyrusOne handles construction while Calpine, controlled by ECP, supplies power via PPA.

Similarly, in 2024, Meta Platforms Inc. (formerly Facebook) made the largest single investment in data center construction, committing USD 10 billion to build a new AI-focused hyperscale campus in Northeast Louisiana. This marks Meta’s biggest data center project to date and stands as one of the largest single-site investments globally.

This wave of investment reflects a long trajectory of technological transformation that has shaped the way data centers are built and scaled. The construction landscape has evolved alongside technological advances. In the 1990s, as microcomputers replaced bulky mainframes, demand surged for purpose-built server environments, ushering in the era of enterprise data centers. By the early 2000s, cloud computing prompted a paradigm shift, requiring scalable, modular, and energy-efficient construction methods. A landmark in data center construction came in 2006 with Google’s launch of its first hyperscale data center in The Dalles, Oregon, a 1.3 million-square-foot facility showcasing industrial-scale innovation in design and energy management.

According to TechSci Research's report, the Global Data Center Construction Market was valued at USD 225.15 billion in 2023 and is expected to reach USD 346.32 billion by 2029 with a CAGR of 7.28% through 2029.

Today, data center construction varies significantly based on the type and purpose of the facility. Key categories include:

Enterprise Data Centers: Constructed by individual organizations to manage in-house IT operations. These are typically built on-premises with strict security, reliability, and customization standards. For example, banks may build secure, high-availability data centers to protect sensitive customer information.

Colocation (Colo) Data Centers: Developed by third-party providers, these facilities lease space, power, and cooling to multiple tenants. Construction focuses on modularity, redundancy (Tier certifications), and flexible design to accommodate diverse client needs. Leading examples include sites built for Equinix and Digital Realty.

Managed Services Data Centers: These are constructed for providers who offer end-to-end infrastructure services, including hardware management, hosting, and monitoring. Construction often includes pre-installed racks and built-in automation to streamline operations for clients outsourcing their IT workloads.

Cloud Data Centers: Built by major cloud service providers (CSPs) like Amazon Web Services, Microsoft Azure, and Google Cloud, these facilities require cutting-edge scalability and virtualization infrastructure. Construction must support rapid deployment, extreme energy efficiency, and seamless global interconnectivity.

Hyperscale Data Centers: These massive structures are designed for mega-scale operations, often exceeding hundreds of megawatts in power capacity. Construction emphasizes high-density server layouts, advanced thermal management systems, and automation. Companies like Meta, Amazon, and Google are known for building hyperscale campuses that support AI, big data analytics, and cloud platforms.

Edge Data Centers: These are smaller, strategically located facilities built close to users or data generation points to minimize latency. Construction must focus on compactness, environmental hardening, and rapid deployment, especially relevant for supporting technologies like IoT, autonomous vehicles, and 5G networks.

As demand for data storage, processing, and real-time services continues to rise, data center construction plays a pivotal role in enabling the digital infrastructure of the future. From sustainability and energy efficiency to modular builds and AI-readiness, the construction sector must constantly innovate to meet the evolving requirements of this mission-critical industry.

Key Demand Drivers of the Data Center Construction Market:

Explosive Growth in Data Generation: The rapid rise in internet usage, video streaming, IoT devices, social media, and enterprise applications has led to an exponential surge in global data generation. This unprecedented growth is driving the need for faster processing, greater storage capacity, and secure data management, necessitating large-scale data center construction across both developed and developing economies. Enterprises worldwide are increasingly investing in modern infrastructure to support digital operations, and this trend is particularly prominent in emerging markets like India. As digitalization accelerates, India’s data center sector is experiencing robust expansion. The country’s strategic geographic location, expanding digital economy, and growing cloud adoption position it as a potential global hub for data center development. According to a Cushman & Wakefield report, India’s current data center capacity across its top seven cities stands at 977 MW. Looking ahead, this capacity is expected to grow significantly as demand for scalable, cloud-based infrastructure intensifies, further fueling the construction of new, next-generation data centers.

Cloud Computing Expansion: The shift from on-premises infrastructure to cloud services is accelerating across industries. Hyperscale cloud providers like AWS, Microsoft Azure, and Google Cloud are investing heavily in global infrastructure, driving large-scale data center construction projects.

Rising Adoption of AI and High-Performance Computing (HPC): AI workloads, machine learning, and big data analytics demand high-density compute environments. This has led to a growing need for advanced data centers with powerful cooling, processing, and electrical infrastructure capable of supporting GPU clusters and AI chips.

Proliferation of 5G Networks and Edge Computing: 5G technology requires ultra-low latency for applications like autonomous vehicles, IoT, smart cities, and AR/VR. This fuels demand for edge data centers, smaller facilities located close to end-users, to process data locally and reduce transmission delays.

Digital Transformation Across Industries: From finance and healthcare to manufacturing and retail, enterprises are modernizing their IT infrastructure to support cloud-native apps, cybersecurity, and real-time operations. This digital shift is prompting both hyperscale and enterprise data center development.

Data Sovereignty and Regulatory Compliance: Governments and regulatory bodies in many countries require sensitive data to be stored locally. This is driving regional and country-specific data center construction to meet compliance standards and support localized services.

Increased Use of Colocation Services: Enterprises seeking to reduce CAPEX are turning to colocation providers. This growing demand for third-party data center space is prompting colocation companies like Equinix, Digital Realty, and NTT to expand their global footprint through new construction.

E-commerce and Streaming Boom: The rapid growth of e-commerce platforms and content streaming services (e.g., Netflix, YouTube, Amazon) has created high demand for backend infrastructure to handle massive volumes of transactions, content delivery, and real-time personalization, leading to new data center builds.

Focus on Sustainability and Energy Efficiency: Modern data center construction is increasingly driven by the demand for energy-efficient, green-certified facilities. Investors and clients are prioritizing carbon neutrality, renewable energy, and eco-conscious designs. For instance, Microsoft is building sustainable data centers using cross-laminated timber (CLT) instead of traditional concrete and steel, reducing embodied carbon by up to 65%. Backed by its USD 1 billion Climate Innovation Fund, the company aims to be carbon-negative by 2030, setting a benchmark for next-generation sustainable infrastructure.

Public and Private Sector Investments: National governments and private investors are pouring capital into digital infrastructure as part of smart city, cybersecurity, and economic development initiatives. These investments are significantly accelerating data center construction worldwide. For instance, Port KC’s approval of USD 10 billion in funding for Project Mica, a massive, 500-acre data center campus in Kansas City’s Northland designed to support Google’s AI operations.

Key Market Challenges:

High Initial Investment Costs: A major hurdle in the global data center construction industry is the substantial upfront capital required. Developing a modern data center demands significant financial resources for land acquisition, construction, power infrastructure, advanced cooling systems, and robust security measures. These high costs can be especially restrictive for smaller firms or new market entrants. Moreover, the fast pace of technological change means companies must continuously invest in upgrades to remain competitive. The long payback period associated with these investments often places additional pressure on financial planning, making it difficult to realize quick returns.

Energy Consumption and Sustainability: The intensive energy needs of data centers represent a major operational and environmental challenge. Powering and cooling extensive server networks lead to high electricity consumption, driving up operational costs. With growing global emphasis on sustainability and stricter environmental regulations, operators are under increasing pressure to adopt energy-efficient practices. While renewable energy integration, such as solar or wind power, and efficient technologies can address these issues, they often require significant upfront investment and complex deployment. Striking the right balance between performance, cost-efficiency, and sustainability continues to be a persistent challenge.

Technological Obsolescence: The relentless pace of innovation in IT and data center technologies creates ongoing concerns around technological obsolescence. To stay relevant and meet shifting customer expectations, operators must frequently update their infrastructure, an effort that involves considerable cost and potential disruptions. Adopting new technologies also demands a skilled workforce and continuous training, adding to operational complexity. The risk of infrastructure becoming outdated too quickly complicates long-term planning and intensifies the challenge of sustaining peak performance.

Skilled Workforce Shortage: A critical constraint for the data center construction sector is the lack of qualified professionals. Developing and managing sophisticated facilities requires expertise across several disciplines, ranging from electrical and mechanical engineering to cybersecurity and IT systems management. However, the demand for these specialized skills often surpasses available talent. This shortfall can lead to project delays, rising labor costs, and potential declines in quality. Additionally, the need for ongoing skill development due to rapid technological evolution further compounds the challenge, underscoring the importance of workforce training and retention strategies.

Regulatory and Compliance Issues: Complying with a wide array of regulations is a complex and resource-intensive aspect of data center construction and operations. Regulations vary significantly by country and region, covering areas such as data privacy, environmental protection, and operational standards. Keeping pace with these diverse requirements demands substantial effort, and failure to comply can result in fines, legal action, and reputational harm. The growing emphasis on data protection and cybersecurity adds another layer of complexity, requiring stringent safeguards and compliance mechanisms. Operators must maintain a proactive approach to regulatory adherence to avoid disruptions and ensure long-term viability.

Top 11 Data Center Construction Companies in India:

1. Turner Construction Company 

Turner Construction is one of the most trusted names in large-scale infrastructure and mission-critical construction, with a significant presence in the data center sector. The company has delivered numerous hyperscale projects for tech giants like Meta (Facebook), Google, and AWS, often under fast-track timelines and complex MEP (mechanical, electrical, plumbing) coordination. The Global Critical Facilities division of the company focuses on the planning, construction, and delivery of mission-critical infrastructure, particularly data centers, telecom hubs, and secure cloud facilities. The group supports both hyperscale cloud providers and enterprise clients requiring high-reliability and secure environments.

Headquarters: New York, USA

Website: www.turnerconstruction.com

Notable Projects: Meta’s Eagle Mountain Campus, Google Data Centers in Ohio and Iowa, and AWS campus expansions in Virginia.

Recent Developments: Turner Construction recently completed a 125,000 sq ft, two-story data center in San Jose, California, featuring a steel-braced frame with pre-finished metal and precast concrete panels, a proprietary DX refrigeration system, upgraded BMS controls for enhanced energy efficiency, and a 12 MW backup generator system—showcasing Turner’s capability in delivering highly technical, energy-efficient facilities within dense metro environments.

Strategic Focus: Prefabrication, modular assembly, and sustainability integration for large-scale hyperscale and colocation campuses.

2. Holder Construction Group, LLC

Holder Construction is a market leader in building hyperscale and enterprise data centers, often operating as the general contractor for Microsoft, Google, and Meta. With a strong focus on speed, security, and scalability, Holder is known for delivering highly complex facilities across North America. It offers data construction services through the data and telecom division.

Website: www.holderconstruction.com

Headquarters: Atlanta, Georgia, USA

Notable Projects: Confidential campuses for Google and Microsoft, and Multiple hyperscale projects in the Midwest and Texas.

Recent Developments: In January 2024, Holder Construction was awarded a USD 1.9 billion contract by EdgeCore Digital Infrastructure to build a large-scale modular data center campus near Mesa, AZ.

Strategic Focus: Repeat client partnerships, lean construction practices, and phased delivery to scale fast.

3. DPR Construction

DPR Construction is a leading technical builder specializing in complex, high-performance facilities that power the digital, industrial, and scientific innovations of tomorrow. As a major player in mission-critical and advanced technology markets, DPR partners with some of the world’s most prominent organizations, including AWS, Meta, Applied Materials, Crusoe Energy, and leaders in biotech and healthcare, to deliver facilities that are resilient, scalable, and future-ready. 

Website: www.dpr.com

Headquarters: Redwood City, California, USA

Notable Projects: Meta’s Oregon Data Center and AWS availability zones in Arizona

Recent Developments: In December 2023, DPR was selected by Meta to build a greenfield, five-building data center campus (~2.5 million square feet) in Mesa, Arizona, valued at USD 1 billion, and expected to be completed by 2026. This facility is designed for LEED Gold certification and will be powered entirely by renewable energy.

Strategic Focus: Integrating BIM (Building Information Modeling), prefab modular systems, and carbon reduction strategies.

4. M.A. Mortenson Company

Mortenson is a powerhouse in U.S. data center construction, especially known for its work with Google, Microsoft, and enterprise clients. With more than 20 years of experience in data center construction, its focus on energy efficiency, renewable power integration, and AI-ready campuses has made it a go-to choice for green infrastructure builds.        

Website: www.mortenson.com

Headquarters: Minneapolis, Minnesota, USA

Notable Projects: Google’s Iowa and Nevada data centers and Microsoft’s West U.S. Azure regions.

Recent Developments: In October 2024, Mortenson published a detailed case-study on colocation data centers emphasizing flexibility, modular design, and prefabrication, where ~70% of MEP fit-outs were done off-site to speed delivery and reduce labor hours.  

Strategic Focus: Renewable energy integration, rapid delivery models, and site-specific design innovation.   

5. Hensel Phelps

Hensel Phelps brings federal-grade experience and precision to the data center world. Known for secure, classified, and high-reliability infrastructure, the company has built numerous mission-critical facilities for defense, cloud, and enterprise clients.

Website: www.henselphelps.com

Headquarters: Greeley, Colorado, USA

Notable Projects: Government-secured data centers and Hyperscale builds in Arizona and Texas

Recent Developments: In June 2024, Meta awarded Hensel Phelps an USD 800 million contract to build a large-scale, AI-optimized, hyperscale data center in Montgomery, AL, spanning 715,000 ft². It joins Meta’s Huntsville campus and is expected to become Meta’s 24th global and 20th U.S. data center.

Strategic Focus: Security-clearance-ready builds, design-build integration, and complex program management.

6. Hoffman Construction Company

Hoffman is widely respected for its deep portfolio of West Coast data center builds, especially in the Pacific Northwest, a major hub for hyperscale activity. The firm partners closely with Amazon, Google, and Facebook for sustainable, large-footprint projects.

Website: www.hoffmancorp.com

Headquarters: Portland, Oregon, USA

Notable Projects: Amazon’s Oregon hyperscale region and High-density AI facilities for confidential tech clients.

Strategic Focus: Water and energy efficiency, hybrid prefabrication, and environmentally sensitive site development.

7. Gilbane Building Company

Gilbane is one of the oldest construction companies in the U.S. and has increasingly focused on technology-driven facilities like data centers, laboratories, and secure government buildings.

Website: www.gilbaneco.com

Headquarters: Providence, Rhode Island, USA

Notable Projects: Regional colocation data centers and Modular buildouts for enterprise clients.

Recent Developments: Gilbane and DPS Advanced Technology Group are working via a joint venture to build the new NanoFab Reflections facility at the Albany NanoTech complex. This four-story R&D center includes a 50,000 SF ISO 5 cleanroom, a sub-fab, a 900-car garage, and upgrades to a high-voltage switchyard.

Strategic Focus: Modular and containerized construction, regional resiliency, and LEED-certified design.

8. J.E. Dunn Construction Company

J.E. Dunn is a strong player in the enterprise and hyperscale data center construction market, with a growing presence in the Southwest and Midwest U.S. markets.

Website: jedunn.com

Headquarters: Kansas City, Missouri, USA

Notable Projects: Multiple hyperscale campus expansions and Edge computing and hybrid cloud facilities.

Recent Developments: In May 2025, JE Dunn broke ground on a USD 210 million industrial/office project in the Austin suburb of Pflugerville, Texas. The 242,000 sq ft facility will serve as the new archival and records storage center for the Texas State Library & Archives Commission and is expected to be completed by fall 2027.

Strategic Focus: Safety-first culture, integrated delivery, and regional scalability.

9. Brasfield & Gorrie, L.L.C.

This southeastern U.S.-based construction firm is increasingly recognized for delivering fast, scalable, and AI-ready data centers across the U.S., especially in states with favorable tax and power policies.

Website: www.brasfieldgorrie.com

Headquarters: Birmingham, Alabama, USA

Notable Projects: Confidential hyperscale builds and Renewable energy-backed sites in Texas and Georgia.

Recent Developments: In January 2025, Brasfield & Gorrie published insights highlighting the role of AI-driven demand acceleration in data center construction.

Strategic Focus: Fast-track delivery, heavy preconstruction, and optimized cooling systems.

10. AECOM

AECOM is a global engineering and construction management firm that plays a major role in data center planning, design, and turnkey construction. Its global reach makes it a preferred partner for clients expanding in EMEA and APAC.

Website: aecom.com

Headquarters: Dallas, Texas, USA

Notable Projects: Data centers in India, Singapore, UAE, and the U.S., End-to-end project delivery for public sector cloud hubs.

Recent Developments: AECOM’s strategic initiative “Sustainable Legacies” targets science-based net-zero carbon by 2040, with interim goals to cut Scope 1 and 2 emissions by 60% and Scope 3 by 50% by 2030. They also embed ESG and low-carbon design goals in major projects via their ScopeX platform.

Strategic Focus: Global project delivery, sustainability consulting, and large-scale data infrastructure design.

11. Fluor Corporation

Fluor is a global EPC powerhouse and a strategic player in megascale infrastructure. Though more known for industrial and energy projects, Fluor has increasingly entered the data center sector via specialized divisions.

Website: www.fluor.com

Headquarters: Irving, Texas, USA

Notable Projects: Large-scale cloud campuses and Modular data centers in Asia and the Middle East.

Strategic Focus: Building high-density campuses and tailored build-to-suit infrastructure (Intelliscale) for AI, HPC, and major cloud clients.

Future Trends Shaping the Data Center Industry:

The data center landscape is undergoing a radical transformation driven by technological advancements, rising global data demand, and sustainability imperatives. As digital infrastructure becomes the backbone of everything from artificial intelligence to remote work, the evolution of data centers is not only inevitable but accelerating.

One of the most profound shifts is the rise of AI-optimized data centers. With the proliferation of generative AI models and machine learning applications, data centers must support intensive computational workloads. This requires high-density GPU clusters, advanced power delivery systems, and next-gen cooling technologies like liquid or immersion cooling. Moreover, AI is now managing data centers from the inside, predicting failures, optimizing energy usage, and automating routine maintenance to boost efficiency and uptime.

Simultaneously, the explosion of real-time data from IoT, autonomous vehicles, AR/VR, and 5G networks has led to the growth of edge computing. To meet ultra-low latency requirements, edge data centers, compact, modular facilities, are being built closer to data sources. These centers alleviate traffic on core infrastructure and enable instantaneous processing crucial for smart cities and industrial automation.

Environmental sustainability is becoming a non-negotiable feature in new data center builds. Operators are adopting carbon-neutral strategies through the use of renewable energy sources like wind and solar, deploying free-air cooling, and reusing waste heat. Innovations in energy-efficient design and green materials are helping major operators meet global climate goals such as RE100 and Scope 1–3 carbon targets.

Another trend gaining momentum is the continued dominance of hyperscale data centers, particularly from tech giants like AWS, Google, and Microsoft. These massive, cloud-centric facilities are increasingly being built using modular and prefabricated construction, allowing for faster deployment, reduced costs, and easier scalability.

To meet the escalating heat output of high-performance hardware, traditional air-cooling methods are becoming insufficient. As a result, liquid cooling and full immersion technologies are emerging as the standard for future-ready facilities, offering superior thermal efficiency and reduced environmental impact.

Looking further ahead, quantum computing is beginning to shape long-term data center design. While mainstream adoption is still years away, forward-looking infrastructure planners are preparing for quantum-ready environments that support ultra-low temperature quantum servers and electromagnetic shielding.

Automation will also define the future of data centers. With the evolution of software-defined infrastructure, data center management platforms are becoming fully autonomous, leveraging AI to handle tasks like load balancing, predictive maintenance, and energy optimization without human intervention.

Security is another pillar of transformation. Rising cyber threats and evolving compliance mandates are pushing for Zero Trust architectures, AI-driven anomaly detection, and stringent physical security protocols, including biometrics and segmented access controls. The future data center will be as much a fortress as it is a high-performance hub.

Furthermore, the shift toward hybrid and multi-cloud environments is reshaping data center interconnectivity. Organizations are demanding seamless integration across public cloud, private infrastructure, and colocation spaces. Data centers are becoming strategic interconnection hubs, facilitating high-speed, low-latency connections between various cloud providers and enterprise networks.

Lastly, global events, ranging from natural disasters to geopolitical instability, are prompting a push for geographic diversification and disaster resilience. Operators are expanding into Tier II and Tier III cities to reduce risk, while designing infrastructure to withstand floods, earthquakes, and other environmental challenges. Redundancy, backup systems, and robust disaster recovery protocols are no longer optional; they are essential.

The future of data centers will be defined by intelligence, sustainability, scalability, and resilience. As digital demand continues its relentless rise, data centers must evolve not only to support new technologies but to lead in shaping a more connected, secure, and sustainable world.

Conclusion:

The world’s most advanced digital services, AI, 5G, gaming, financial trading, and cloud computing, are powered by physical infrastructure. The data center construction companies profiled here are not just builders; they are enablers of the modern economy.

Their work demands unparalleled precision, speed, energy innovation, and a deep understanding of mission-critical operations. Whether it’s Turner’s mega-campuses, Mortenson’s AI-ready builds, or AECOM’s global reach, these firms are redefining what it means to build at the edge of digital possibility.