Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 281.34 Billion |
| Market Size (2030) | USD 400.16 Billion |
| Growth Rate (2025 - 2030) | 7.30% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Data Center Construction Market Analysis by Mordor Intelligence
The data center construction market size is expected to be valued at USD 281.34 billion in 2025 and is forecast to reach USD 400.16 billion by 2030, advancing at a 7.30% CAGR during 2025-2030. The expansion reflects surging demand for AI-ready capacity, widespread cloud migration, and edge deployments that place digital infrastructure closer to users. Capital spending by hyperscale operators has surged significantly, translating into a robust global construction pipeline that favors standardized, repeatable build models. Yet supply-chain disruptions in transformers and switchgear lengthen delivery lead times to more than 120 weeks, threatening schedule certainty and elevating project risk. Parallel regulatory pressure on energy efficiency pushes owners to integrate on-site renewables and heat-recovery systems from project inception, adding design complexity but also unlocking access to fast-growing pools of green-bond financing.
Key Report Takeaways
- By tier classification, Tier 3 facilities captured 58.2% of the data center construction market share in 2024, whereas Tier 4 is projected to grow at a 7.8% CAGR through 2030.
- By data-center type, colocation held 54.3% revenue share in 2024; self-build hyperscalers are set to expand at 8.5% CAGR to 2030.
- By electrical infrastructure, power-backup systems commanded a 57.1% share of the data center construction market size in 2024, while power-distribution solutions will rise at a 9.3% CAGR between 2025-2030.
- By mechanical infrastructure, cooling systems accounted for 42.7% of the data center construction market size in 2024; servers and storage subsections will advance at 8.3% CAGR through 2030.
- By geography, North America held 24.5% share in 2024; Asia-Pacific is projected to post the fastest 9.7% CAGR to 2030.
Global Data Center Construction Market Trends and Insights
Drivers Impact Analysis
| Driver | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing cloud applications, AI and big data workloads | +2.1% | Global, with concentration in North America and Asia-Pacific | Long term (≥ 4 years) |
| Accelerating adoption of hyperscale facilities | +1.8% | North America and EU primary, Asia-Pacific emerging | Medium term (2-4 years) |
| Rising edge-computing build-outs near population hubs | +1.2% | Global urban centers, early gains in APAC metros | Medium term (2-4 years) |
| Renewable-energy mandates shaping facility design | +0.9% | EU regulatory leadership, North America following | Long term (≥ 4 years) |
| Prefabricated / modular builds shrinking time-to-market | +0.7% | Global adoption, advanced deployment in North America | Short term (≤ 2 years) |
| ESG-linked green-bond financing unlocking capex | +0.6% | North America and EU primary markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Growing Cloud Applications, AI and Big Data Workloads
High-density AI racks now demand 50-100 kW per rack, fundamentally changing design briefs and favoring liquid cooling over legacy air systems.[1]Microsoft Corporation, “AI Infrastructure Investment Update 2025,” microsoft.com Microsoft alone has earmarked USD 80 billion in 2025 CAPEX for AI infrastructure, spurring builders to engineer gigawatt-scale campuses with redundant 400 kV feeds and on-site substations. Copper demand for these builds is already six times the level of conventional cloud facilities, which supports a growing specialty trade segment for advanced thermal-management installation. Projects such as Crusoe’s 1.2 GW campus in Texas illustrate how the data center construction market is stretching traditional construction practices, requiring modular blocks, megawatt-class immersion tanks, and rapid permitting strategies that keep pace with AI compute roadmaps.
Accelerating Adoption of Hyperscale Facilities
Hyperscale capacity is forecast to triple by 2030, accounting for most incremental square footage added worldwide. Turner Construction’s USD 2 billion Vantage facility in Ohio, with 192 MW of IT power, typifies the standardized, repeat-build approach that lowers unit costs via bulk procurement and prefabricated skids. While the model secures economies of scale, it concentrates activity in power-rich markets, tightening labor availability and driving wage premiums above 20% in regions such as Northern Virginia and Dublin. Financial structures depend on multibillion-dollar power-purchase agreements, meaning utility interconnection queues and clean-energy targets often dictate construction phasing.[2]Siemens AG, “Compass Datacenters Framework Agreement,” siemens.com
Rising Edge-Computing Build-outs Near Population Hubs
Latency-critical services require micro-facilities of 1-10 MW located within 50 km of dense urban areas, prompting contractors to convert warehouses, parking structures, and retail shells into hardened IT nodes. Kevlinx’s 32 MW Brussels site achieves sub-5 ms latency to Paris, Frankfurt, and Amsterdam, an outcome that prioritizes vertical rack layouts, acoustic shielding, and community-friendly façades . Urban zoning adds layers of complexity, with 53 US municipalities enacting noise or appearance ordinances that influence equipment selection and façade materials. Construction programs, therefore, rely on modular kits pre-approved for seismic and fire codes to shrink commissioning windows to under 30 weeks, an advantage increasingly prized by telecom operators seeking rapid 5G edge capacity.
Renewable-Energy Mandates Shaping Facility Design
The EU Energy Efficiency Directive obliges data centers above 100 kW to disclose annual energy metrics, pushing owners to integrate on-site solar, battery storage, and waste-heat reuse in the earliest design stages.[3]European Commission, “ EU Energy Policy,” energy.ec.europa.euCalifornia’s Climate Corporate Data Accountability Act extends similar transparency to US operators starting in 2026. Meta’s geothermal-powered campus in New Mexico demonstrates the convergence of construction and renewable-infrastructure disciplines, combining 2.5 MWh of lithium-ion storage with 50 MW direct-air-capture heat sinks to offset grid consumption. Projects that achieve PUE below 1.15 secure preferential financing rates on green bonds, adding a capital-market incentive to efficient design.
Restraints Impact Analysis
| Restraint | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating real-estate, installation and maintenance costs | -1.4% | Global, acute in North America and EU urban centers | Short term (≤ 2 years) |
| Stricter energy-consumption and carbon-compliance limits | -0.8% | EU regulatory leadership, expanding globally | Medium term (2-4 years) |
| Shortage of skilled labor for advanced liquid cooling | -0.9% | Global, particularly acute in North America | Short term (≤ 2 years) |
| Supply-chain volatility in high-capacity power gear | -1.1% | Global supply chains, regional variations | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Escalating Real-Estate, Installation and Maintenance Costs
Labor shortages layered on a 20% wage premium for electricians and pipefitters across Northern Virginia’s 3.5 GW cluster, constraining contractor availability and extending project schedules. Developers increasingly scout secondary metros such as Phoenix and Madrid, where land and power remain comparatively inexpensive. Bulk-buy agreements for steel joists and switchgear plus long-term hedges on copper now underpin cost-control strategies at firms like DPR Construction, which completed a 100 MW campus in Texas on a fixed-price basis despite volatile commodity inputs. Steel framing remains cost-advantaged, with 20-year lifecycle outlays of USD 350,000 compared to USD 670,000-1.1 million for traditional concrete shells.
Supply-Chain Volatility in High-Capacity Power Gear
Lead times for 230-kV transformers ballooned to 115-130 weeks after 2020, as electrification projects strained manufacturing capacity and grain-oriented steel prices more than doubled. Ninety percent of investor-owned US utilities report medium-to-high transformer-shortage risk, prompting early-procurement clauses and alternative designs that split large units into parallel 60 MVA modules, easier to source. Hitachi Energy’s USD 250 million capacity expansion aims to relieve the backlog by 2027, but interim constraints compel builders to issue purchase orders at the schematic-design stage, locking up scarce slots months before ground-breaking. Similar volatility affects liquid-cooling manifolds and CRAH fan motors, spurring modular power rooms and dual-sourced bills of material as standard risk-mitigation tactics.
Segment Analysis
By Tier Type: Mission-Critical Tier 4 Drives Premium Growth
Tier 3 assets retained 58.2% of the data center construction market share in 2024, reinforcing their role as the de facto enterprise standard thanks to balanced redundancy and capex profiles. Meanwhile, Tier 4 demand is projected to grow at 7.8% CAGR through 2030 as banks, stock exchanges, and public-sector cloud mandates pay premiums for 99.995% uptime. Tier 4 projects often double construction complexity: dual utility feeds, 2N power trains, and compartmentalized fire zones inflate budgets by up to 70% over Tier 2 blueprints. Turner Construction’s modular Tier 4 build in North Carolina cut commissioning time by 15% using factory-tested power pods, illustrating how innovation tempers cost escalation.
Developers also weigh lifecycle economics. The data center construction market therefore, sees rising design-build consortiums that integrate mechanical, electrical, and controls to certify Tier 4 on first power-up. Prefabricated chillers and containerized UPS segments enable scale without sacrificing Tier 4 compliance, supporting multi-phase rollouts that align spend with demand growth.
Note: Segment shares of all individual segments available upon report purchase
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By Data Center Type: Hyperscalers Challenge Colocation Dominance
Colocation retained 54.3% of 2024 revenue, underlining its value proposition of multi-tenant flexibility and speed-to-market. However, self-built hyperscalers will widen at 8.5% CAGR through 2030, reflecting strategic moves by cloud giants to own core infrastructure. The USD 10 billion Meta Louisiana campus uses a 4 million-square-foot layout dedicated to AI training clusters and backed by a 600 MW solar PPA, underscoring how scale economics tilt toward owner-operator models. Colocation operators respond by offering build-to-suit halls and liquid-cooling-ready floors, preserving relevance amid hyperscale expansion.
Construction modalities diverge. Colocation halls require flexible cage layouts, hot-aisle containment, and shared meet-me rooms that accommodate diverse tenant densities. Hyperscalers instead prefer 12 MW blocks replicated in cookie-cutter fashion to cut capex per MW by 20%. Factory-assembled structural steel frames arrive on site pre-welded, slashing erection times to three weeks for a 30-MW building. As a result, the data center construction market is increasingly segmenting EPC suppliers into multi-billion-dollar global framework agreements for hyperscalers and regional frameworks for edge and enterprise demand.
By Electrical Infrastructure: Power Distribution Innovation Accelerates
Power-backup systems captured 57.1% share of the data center construction market size in 2024, reflecting indispensable UPS and diesel-generator spend. Forward-looking designs emphasize medium-voltage UPS topologies paired with lithium-ion batteries that cut footprint by 50% and extend runtime to 5 minutes for AI accelerators. Power-distribution solutions are expected to outpace overall spend with 9.3% CAGR, driven by 48 VDC busways, rear-door power shelves, and intelligent branch-circuit metering.
The Crusoe Energy AI facility integrates 26 kV feeders directly onto immersion tanks hosting 100,000 GPUs, illustrating how high-density compute reshapes electrical layouts. Contractors now pre-assemble switchboards in ISO containers equipped with redundant PXIe controls, shipping them for plug-and-play interconnections at the site. This trend raises demand for electricians skilled in medium-voltage arc-flash coordination and fiber-optic CT metering, sharpening the labor-shortage pinch already visible in 2025.
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By Mechanical Infrastructure: Cooling Systems Lead Thermal Revolution
Cooling systems comprised 42.7% of mechanical allocations in 2024 as server heat density surged. AI accelerators produce concentrated hot spots exceeding 1,000 W per chip, prompting the adoption of direct-to-chip liquid loops and immersion tanks. Servers and storage mechanical spend is forecast to rise at 8.3% CAGR, reflecting chassis redesigns optimized for cold-plate manifolds that reduce pumping power by 25%.
LiquidStack’s coolant distribution units achieve PUE levels near 1.02, validating the business case despite higher upfront cost. Builders must therefore accommodate stainless-steel headers, leak-detection fiber mats, and redundant dry coolers. Prefabricated cooling modules shorten field-weld timelines and standardize quality, mitigating one of the largest sources of commissioning delays. In China, Huawei’s 232 prefabricated module project cut onsite waste by 80% and was completed in six months, demonstrating how modular mechanical systems scale across geographies.
Geography Analysis
Germany stands as the cornerstone of Europe's data center construction market, commanding approximately 6% of the global data center construction market size in 2024. The country's robust digital infrastructure, particularly concentrated in major hubs like Frankfurt, Berlin, and Hamburg, continues to attract significant investments from global technology giants. The nation's commitment to sustainable data center development is evident through strict energy efficiency regulations and the increasing adoption of renewable energy sources. Frankfurt, in particular, has emerged as a critical digital hub, benefiting from its central European location and extensive fiber connectivity. The country's data center landscape is further strengthened by its advanced technological ecosystem, skilled workforce, and stable political environment. German data centers are increasingly focusing on innovative cooling technologies and sustainable construction practices, setting new standards for environmental responsibility in the industry.
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Competitive Landscape
The data center construction market remains moderately fragmented. Turner Construction, DPR Construction, and AECOM anchor the top tier with deep hyperscale credentials and design-build delivery models, securing multi-year framework contracts. M&A appetite intensified in 2024 as strategic players chased vertical integration: Eaton’s USD 1.4 billion purchase of Fibrebond brought modular-steel fabrication in-house, while Siemens partnered with Compass Datacenters for custom electrical rooms that cut construction cycles to nine months.
Regional specialists such as Skanska and Samsung C&T defend their share through local regulatory expertise and labor networks. These firms increasingly partner with global EPCs on joint ventures for megaprojects like Brookfield’s USD 10 billion Swedish AI campus, balancing global procurement scale with local execution competency. Meanwhile, disruptors including Clayco Compute and Cupix leverage digital twins and reality-capture technology to improve field productivity, winning portions of edge and retrofit scopes previously dominated by incumbents.
Data Center Construction Industry Leaders
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AECOM
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Turner Construction Co.
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DPR Construction
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Jacobs Solutions Inc.
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Skanska AB
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: Amazon confirmed USD 20 billion investment for Pennsylvania campuses beside nuclear plants, creating 1,250 jobs.
- June 2025: Vantage Data Centers closed EUR 720 million (USD 821 million) asset-backed securitization funding four German sites valued at USD 1 billion.
- June 2025: Brookfield unveiled USD 10 billion AI data-center plan in Sweden, aiming for 600 MW renewable-powered capacity.
- May 2025: BSO launched DataOne, a 15 MW French campus scalable to 400 MW by 2028 on 100% renewables with 1.06-1.15 PUE.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Mordor Intelligence defines the data center construction market as the total value of greenfield builds that combine civil works, electrical and mechanical fit-outs, and embedded services needed to deliver an operational facility that can house IT infrastructure. Activity tied only to IT equipment procurement or ongoing facility maintenance is outside this boundary.
Scope Exclusion: Retrofits and cosmetic upgrades of existing data centers are not counted.
Segmentation Overview
- By Tier Type
- Tier 1 and 2
- Tier 3
- Tier 4
- By Data Center Type
- Colocation
- Self-build Hyperscalers (CSPs)
- Enterprise and Edge
- By Infrastructure
- By Electrical Infrastructure
- Power Distribution Solution
- Power Backup Solutions
- By Mechanical Infrastructure
- Cooling Systems
- Racks and Cabinets
- Servers and Storage
- Other Mechanical Infrastructure
- General Construction
- Service - Design and Consulting, Integration, Support and Maintenance
- By Electrical Infrastructure
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia and New Zealand
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- Gulf Corporation Countries
- Turkey
- Israel
- Rest of Middle East
- Africa
- South Africa
- Egypt
- Nigeria
- Rest of Africa
- Middle East
- North America
- Tier 1 and 2
Detailed Research Methodology and Data Validation
Primary Research
We interviewed project managers at design-build firms, procurement heads at colocation operators in North America, Europe, and India, plus regional permitting consultants. These discussions clarified real build cost per megawatt, grid connection delays, and liquid cooling adoption, letting us fine-tune assumptions uncovered during desk work.
Desk Research
Our analysts first mapped global construction outlays using freely available sources such as the U.S. Census 'Value of Construction Put in Place,' Eurostat building permits, and the Japan MLIT construction statistics. Trade flows for gensets and UPS units were checked through UN Comtrade, while the Uptime Institute Global Data Center Survey and AFCOM State of the Data Center reports offered demand benchmarks. Company filings, contractor 10-Ks, and regional permitting portals then anchored project pipelines. Select paid datasets, including D&B Hoovers for contractor revenues and Dow Jones Factiva for deal news, filled remaining gaps. This list is illustrative, not exhaustive; many additional publications guided validation.
A second pass pulled price indices from the BLS Producer Price Index (electrical gear) and the IMF's metal cost trackers to calibrate cost escalation so our desk findings stayed grounded in current realities.
Market-Sizing & Forecasting
A top-down model starts with non-residential construction spending and hyperscale capital expenditures, which are then filtered through data center specific penetration ratios. Results are cross-checked bottom up with sampled cost per MW multiplied by announced capacity additions to test reasonableness. Key variables include average build cost per MW, global hyperscale CAPEX, rack density trends, transformer lead times, and regional electricity pricing. Multivariate regression coupled with scenario analysis projects values to 2030, with gaps in bottom up samples bridged by regional cost curves derived from primary interviews.
Data Validation & Update Cycle
Outputs pass a three-layer review: automated variance flags, senior analyst peer checks, and a final reconciliation against new permits and CAPEX disclosures. Mordor refreshes every twelve months and re-contacts experts when material events, policy shifts, and major supply chain shocks arise.
Why Mordor's Data Center Construction Baseline Commands Reliability
Published figures can diverge because providers choose different cost baskets, treat mixed-use campuses inconsistently, or lock forecasts to static ASPs. Our disciplined scope selection and yearly refresh reduce those pitfalls.
Key gap drivers include: some studies omit general construction labor; others freeze cost inflation at historical averages; a few exclude edge or self-built hyperscale projects outside North America. Mordor captures all of these elements and validates currency conversions quarterly.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 281.34 B (2025) | Mordor Intelligence | |
| USD 240.97 B (2024) | Global Consultancy A | Narrower infrastructure scope and static cost indices |
| USD 239.00 B (2025) | Industry Journal B | Excludes general construction labor, uses fixed ASP per MW |
| USD 182.51 B (2025) | Regional Consultancy C | Limited Asia Pacific coverage and outdated hyperscale CAPEX |
Taken together, the comparison shows that Mordor's numbers rest on the broadest cost base, live cost escalators, and multi-region coverage, giving decision makers a transparent and repeatable baseline they can trust.
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Key Questions Answered in the Report
What is the current value of the data center construction market?
The market stands at USD 281.34 billion in 2025 and is projected to grow to USD 400.16 billion by 2030.
Which region is expanding fastest in data center construction?
Asia-Pacific leads growth with a projected 9.7% CAGR through 2030, fueled by large investments in China, India, and Southeast Asia.
Why are Tier 4 data centers gaining traction?
Tier 4 sites offer 99.995% uptime, attracting sectors such as financial trading that face downtime costs above USD 100,000 per hour.
How are supply-chain constraints affecting projects?
Transformer lead times have stretched beyond 120 weeks, forcing owners to place orders at early design stages and explore modular electrical solutions.
Which construction approach is cutting project timelines most effectively?
Prefabricated and modular builds reduce field labor by roughly 30% and have enabled some hyperscale projects to achieve nine-month delivery schedules.
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