Data Center Construction Market - Growth, Trends, and Forecast (2020 - 2025)

The Data Center Construction Market is segmented by Tier (Tier-1, Tier-2, Tier-3, and Tier-4), Size of Enterprise (Small and Medium-scale Enterprise and Large-scale Enterprise), End-user (BFSI, IT and Telecom, Government and Defense, Healthcare, Retail, Power and Energy, Manufacturing, and Other End-users), and Geography.

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

North America


8.34 %

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Market Overview

The data center construction market was valued at USD 20.11 billion in 2019, and is expected to reach a value of USD 32.50 billion by 2025, registering a CAGR of 8.34% over the forecast period of 2020–2025. The development of advanced technologies, such as cloud-based services, internet of things, software-defined data centers, and disaster recovery fueled the demand for the construction of data centers, globally. 

  • By the end of 2018, 550 MW data centers were under construction across Europe, North America, Middle East, and APAC, with the North American markets accounting for about 44% of the total. 
  • Even today, the state and local municipalities of North America are competing to construct more data centers to their markets. For instance, Texas passed tax incentive legislation that provides a complete exemption of sales taxes on business property. This factor is necessary for data center operation in the next 10 to 15 years for large data center users. 
  • The regulations and mandates by the government to reduce energy consumption have led many of the large companies to shift their data centers from the remote locations to the urban area.
  • For instance, the new prototype named, The Spark, moved data centers from remote locales to the middle of the cities. This factor allows them to provide energy to nearby buildings with energy. The solar panels on the surrounding houses provide the data center energy. This concept has the capacity to supply energy to 18,000 households. The power consumption of the data centers can be reduced by about 40%.

Scope of the Report

The data center constructions focus on designing and building data centers by considering capacity, disaster tolerance, and efficient design. Depending upon the quality and reliability of the data centers, the scope of the report is limited to Tier-1, Tier-2, Tier-3, and Tier-4. This is being used in small, medium, and large scale enterprises.     

By Tier Type
By Size of the Enterprise
Small and Medium-scale Enterprise
Large-scale Enterprise
By End-user
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Power and Energy
Other End-users
North America
United States
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Growing Adoption of Hyperscale Data Centers is Driving the Market Growth

  • The hyperscale data centers are broadly used in different sectors to increase computing ability, memory, networking infrastructure, or storage resources. The different features of the hyperscale data centers include the physical infrastructure and distribution systems that support the data centers for maximizing cooling efficiency, as well as the ability to scale computing tasks in a quicker and faster way.
  • Many cloud-based companies, such as Google and Facebook, are investing in supercomputers to accommodate their hyperscale needs. 
  • For instance, Facebook is expecting the construction of its fifth hyperscale facility, an H-shaped building with 2.5 million sq. ft area, by mid-2020.
  • Furthermore, in February 2019, India’s leading data center player, CtrlS, invested INR 2000 crore in setting up a hyperscale infrastructure, which is claimed to be the world’s largest Hyperscale Tier-4 data center facility.
  • In addition, in Thailand, ST Telemedia Global Data Center (STT GDC) announced the construction of its hyperscale data center facility. This will consist of two seven-story buildings within a data center campus where each building will support an IT load of 20MW, with the construction taking place in two phases. This increased rate of contruction of the hyperscale data centers is expected to significantly drive the market growth.

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North America to Hold a Major Share

  • Over the years, the United States has been identified to be one of the fore-runners in the adoption of new technologies. With the rise in Big Data analytics, the companies in that region, in order to avoid falling short on traditional storage, have begun the construction of new data centers and colocation centers to run business analytics. 
  • The growing investments in metro infrastructure in North America provided optimal opportunities for the construction of data centers. For instance, CyrusOne has planned to build a 340,000 sq. ft. mega data center with 100MW of capacity in Dallas metro in three phases.
  • Furthermore, the service industry in the United States has been witnessing growth at a robust rate, which in turn, is leading to the generation of vast volumes of data. Organizations are increasingly adopting data centers to store and process the acquired data. 
  • In 2018, Kolos constructed the largest data center (of 600,000-square meter, with 1,000 MW of computing power) in the world in Ballangen, Norway. The data center is expected to scale up about two gigawatts of consumable renewable power, which is more than the generation capacity of any other data center in the world. 

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Competitive Landscape

The data center construction market consists of several major players. With the technological advancements and product innovations, many companies are increasing their presence in the market by securing new contracts and by tapping new markets. 

  • March 2019 - DataGryd selected Clune Construction to build its 1 megawatt, MegaSuite 6, in New York, with the five data halls on the 6th floor. MegaSuite 6 will feature 1,000kW of utility power and will be connected to over 300 carriers and network providers.
  • September 2018 - Fortis Construction opened a new data center office at Singapore, which will provide general construction services to Facebook. This will be the first data center of Facebook in Asia.

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Table Of Contents


    1. 1.1 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Growing Demand for Cloud Applications

      2. 4.3.2 Rising Adoption of Hyperscale Data Centers

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Necessary Resources

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry



    1. 6.1 By Tier Type

      1. 6.1.1 Tier-1

      2. 6.1.2 Tier-2

      3. 6.1.3 Tier-3

      4. 6.1.4 Tier-4

    2. 6.2 By Size of the Enterprise

      1. 6.2.1 Small and Medium-scale Enterprise

      2. 6.2.2 Large-scale Enterprise

    3. 6.3 By End-user

      1. 6.3.1 Banking, Financial Services, and Insurance

      2. 6.3.2 IT and Telecommunications

      3. 6.3.3 Government and Defense

      4. 6.3.4 Healthcare

      5. 6.3.5 Retail

      6. 6.3.6 Power and Energy

      7. 6.3.7 Manufacturing

      8. 6.3.8 Other End-users

    4. 6.4 Geography

      1. 6.4.1 North America

        1. United States

        2. Canada

      2. 6.4.2 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. Rest of Asia-Pacific

      4. 6.4.4 Latin America

        1. Brazil

        2. Mexico

      5. 6.4.5 Middle East & Africa


    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 SAS Institute Inc.

      3. 7.1.3 Turner Construction Co.

      4. 7.1.4 DPR Construction Inc.

      5. 7.1.5 Fortis Construction

      6. 7.1.6 Hensel Phelps Construction Co. Inc.

      7. 7.1.7 HITT Contracting Inc.

      8. 7.1.8 JE Dunn Construction Group Inc.

      9. 7.1.9 MA Mortenson Company Inc.

      10. 7.1.10 AECOM

      11. 7.1.11 Gilbane Building Company Inc.

      12. 7.1.12 Clune Construction Company, L.P.

      13. 7.1.13 Nabholz Corporation

      14. 7.1.14 RagingWire Data Centers Inc.

      15. 7.1.15 CyrusOne Inc.

      16. 7.1.16 Cyxtera Technologies Inc.

  8. *List Not Exhaustive


** Subject to Availability

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