Data Center Construction Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Infrastructure Type (Electrical Infrastructure, Mechanical Infrastructure, Networking Infrastructure, Others), By Tier Level (Tier I, Tier II, Tier III, Tier IV), By Data Center Size (Small Data Centers, Medium Data Centers, Large Data Centers, Hyperscale Data Centers), By End-User Industry (IT & Telecommunications, BFSI, Healthcare, Government & Public Sector, Others), By Region, and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 247.18 Billion
CAGR (2026-2031)	7.37%
Fastest Growing Segment	Hyperscale Data Centers
Largest Market	North America
Market Size (2031)	USD 378.71 Billion

Market Overview

The Global Data Center Construction Market will grow from USD 247.18 Billion in 2025 to USD 378.71 Billion by 2031 at a 7.37% CAGR. Data center construction comprises the structural development and engineering of facilities designed to house mission critical computer systems and associated components. This market is primarily driven by the acceleration of digital transformation, widespread migration to cloud architectures, and the intense computational requirements of artificial intelligence applications. These elements collectively necessitate rapid infrastructure development to support escalating data volumes and processing needs. According to the Associated General Contractors of America, in 2024, spending on data center construction rose by 69 percent compared to the previous year, highlighting the sector's robust financial momentum relative to other office construction categories.

Nevertheless, market expansion faces a significant hurdle due to the limited availability of utility power and a shortage of skilled construction labor. High density computing environments demand immense energy loads that many local grids cannot immediately support, often leading to extended lead times for power connection. Furthermore, the insufficient supply of qualified engineers and trade professionals complicates the execution of complex mechanical and electrical installations, creating bottlenecks that may impede the timely delivery of new capacity to the market.

Key Market Drivers

The rapid adoption of artificial intelligence is reshaping the Global Data Center Construction Market by demanding facilities with higher power densities and specialized cooling architectures. Generative AI models require infrastructure capable of supporting massive concurrent processing, compelling developers to construct purpose-built environments optimized for liquid cooling and heavy electrical loads. This shift is fueling unprecedented capital allocation toward infrastructure that can handle these rigorous technical specifications. According to Meta, April 2024, in the 'First Quarter 2024 Results', the company increased its full-year capital expenditure outlook to between $35 billion and $40 billion specifically to accelerate its artificial intelligence roadmap and support infrastructure buildouts.

Concurrently, the continued expansion of hyperscale cloud infrastructure drives market growth as providers establish availability zones in new geographic regions. This expansion is essential to reduce latency and comply with data sovereignty regulations, resulting in a proliferation of facility developments across global markets. According to the International Energy Agency, in 2024, electricity consumption from data centers is projected to double by 2026, necessitating a parallel increase in constructed facility space to manage this operational load. Furthermore, substantial regional investments highlight this trend; according to Amazon Web Services, May 2024, in a 'Press Announcement', the company committed €7.8 billion to the European Sovereign Cloud in Germany through 2040, underscoring the strong pipeline for localized cloud services.

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Key Market Challenges

The limited availability of skilled construction labor presents a formidable obstacle to the expansion of the Global Data Center Construction Market. This deficit is particularly severe regarding the specialized trade professionals required for the intricate mechanical and electrical systems that define modern data center facilities. Unlike standard commercial projects, these environments demand a high level of technical proficiency to install and maintain complex cooling and power infrastructure. According to the Associated Builders and Contractors, in 2025, the U.S. construction industry will need to attract an estimated 439,000 net new workers to meet anticipated demand. This significant workforce gap directly hampers the ability of construction firms to keep pace with the aggressive schedules required by hyperscale operators.

The impact of this scarcity manifests primarily as project bottlenecks and extended delivery timelines. When contractors cannot secure enough qualified electricians and engineers, the critical path of construction is disrupted. This inability to rapidly deploy skilled teams prevents the timely execution of capacity additions, leaving the market unable to fully support the escalating data volumes driven by digital transformation. Consequently, the gap between demand for processing capabilities and the physical availability of infrastructure widens, constraining the sector's growth.

Key Market Trends

The implementation of on-site renewable energy microgrids is rapidly becoming a fundamental aspect of data center construction, driven by the need to bypass utility constraints and ensure operational resilience. Developers are increasingly engineering facilities with integrated power generation capabilities, such as solar arrays and wind farms, to mitigate the risks associated with grid instability and carbon emission mandates. This structural shift necessitates the development of vast energy infrastructure alongside the data halls themselves, effectively transforming server farms into self-sustaining power hubs. According to Brookfield Renewable Partners, May 2024, in a 'Press Release', the company executed a global framework agreement with Microsoft to deliver 10.5 gigawatts of new renewable energy capacity, illustrating the massive scale of infrastructure construction required to support these energy-independent digital ecosystems.

Concurrently, the adoption of modular and prefabricated construction methods is reshaping project delivery strategies to address the chronic shortage of skilled labor and the need for speed. By manufacturing critical structural and mechanical components in controlled off-site factories, construction firms can standardize quality and execute parallel workflows that significantly compress project timelines compared to traditional linear building techniques. This approach allows for the rapid assembly of complex electrical rooms and cooling modules, minimizing on-site disruption and accelerating the path to revenue. According to Schneider Electric, March 2024, in a 'Press Release', the company committed a $140 million investment to expand its U.S. manufacturing operations, a move specifically targeted at meeting the surging demand for these custom power products and modular data center solutions.

Segmental Insights

The Hyperscale Data Centers segment constitutes the fastest-growing category in the Global Data Center Construction Market, driven by the surging demand for cloud services and artificial intelligence. Major technology corporations are investing heavily in these large-scale facilities to ensure operational efficiency and support massive data workloads. Additionally, data localization mandates enforced by government regulatory bodies globally necessitate the regional construction of high-capacity centers to comply with sovereignty requirements. This sustained requirement for scalable and dense computing infrastructure positions the hyperscale segment as the central force behind current market developments.

Regional Insights

North America dominates the Global Data Center Construction Market largely due to the concentration of major hyperscale operators, including Amazon Web Services, Microsoft, and Google. This region benefits from the rapid adoption of cloud computing and generative artificial intelligence, creating a continuous requirement for high-density storage and processing capabilities. Additionally, a mature telecommunications framework and access to renewable energy options attract significant capital investment. Consequently, North America retains its status as the principal hub for data center development compared to other global territories.

Recent Developments

• In November 2025, Amazon Web Services (AWS) revealed plans to invest $3 billion to construct a new data center campus in Warren County, Mississippi. This major capital project was intended to support the increasing global demand for cloud computing and artificial intelligence technologies. The development supplemented a previous $10 billion investment in the state, further establishing the region as a critical hub for the company's digital infrastructure. The new facility was designed to house advanced servers and networking equipment, reflecting the continued aggressive expansion strategies of hyperscale providers to build out capacity for future digital services.
• In July 2025, Oracle expanded its strategic collaboration with OpenAI to provide significant additional cloud computing capacity for artificial intelligence operations. Under this agreement, the partner company committed to renting extensive infrastructure to support its "Stargate" project and other high-demand workloads. To fulfill these requirements, Oracle announced plans to construct several new data centers across multiple U.S. states, including Texas, Michigan, and Wisconsin. This partnership underscored the massive scale of infrastructure development required to support large language models, driving a surge in construction activity within the global data center market to meet enterprise needs.
• In December 2024, Schneider Electric launched the Galaxy VXL, a new uninterruptible power supply (UPS) system specifically engineered for high-density data centers and artificial intelligence workloads. This innovative product offered a modular design that provided substantial space savings compared to industry averages, addressing the constraints of modern facility footprints. The system was designed to handle the intensive power requirements of AI clusters, supporting loads of up to 1.25 megawatts in a single frame. The release expanded the company's portfolio of advanced infrastructure solutions, targeting operators who required efficient and scalable power management for next-generation computing environments.
• In October 2024, Microsoft announced a breakthrough in sustainable data center construction by utilizing cross-laminated timber (CLT) for two new facilities in Northern Virginia. This initiative marked the first use of engineered wood in a hyperscale data center in the United States, aiming to reduce embodied carbon emissions significantly compared to traditional steel and concrete methods. The project employed a hybrid construction approach, incorporating CLT for floors and ceilings to lower the environmental impact of the building materials. This development demonstrated a strategic shift toward low-carbon infrastructure to support the company's long-term sustainability goals.

Key Market Players

• Turner Construction Company
• Holder Construction Group, LLC
• DPR Construction
• Hoffman Structures Inc.
• Hensel Phelps
• Gilbane Inc.
• J.E. Dunn Construction Company
• Brasfield & Gorrie, L.L.C
• M. A. Mortenson Company
• AECOM

By Infrastructure Type	By Tier Level	By Data Center Size	By End-User Industry	By Region
Electrical Infrastructure Mechanical Infrastructure Networking Infrastructure Others	Tier I Tier II Tier III Tier IV	Small Data Centers Medium Data Centers Large Data Centers Hyperscale Data Centers	IT & Telecommunications BFSI Healthcare Government & Public Sector Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Data Center Construction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Center Construction Market, By Infrastructure Type:

• Electrical Infrastructure
• Mechanical Infrastructure
• Networking Infrastructure
• Others

• Data Center Construction Market, By Tier Level:

• Tier I
• Tier II
• Tier III
• Tier IV

• Data Center Construction Market, By Data Center Size:

• Small Data Centers
• Medium Data Centers
• Large Data Centers
• Hyperscale Data Centers

• Data Center Construction Market, By End-User Industry:

• IT & Telecommunications
• BFSI
• Healthcare
• Government & Public Sector
• Others

• Data Center Construction Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE