Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Data Center Construction Market is Segmented by Infrastructure (Electrical Infrastructure (UPS Systems, Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, Other Mechanical Infrastructure), and Other Infrastructure), by Tier Type (Tier-I and Tier-II, Tier-III, and Tier-IV), by Size of Data Center (Small and Medium-scale Data Center, Large-scale Data Center), by End-User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

Data Center Construction Market Size

Data Center Construction Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 6.02 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Data Center Construction Market Analysis

The Data Center Construction Market size is expected to grow from USD 259.97 billion in 2023 to USD 348.23 billion by 2028, registering a CAGR of 6.02% during the forecast period (2023-2028).

  • Enterprises must rely on data centers to fulfill their IT requirements as on-demand services become increasingly prevalent. Data centers have changed tremendously due to increasing organizational demands for data management, backup and recovery, and productivity tools like email. An increasing number of data centers that serve enterprise applications and offer data storage, administration, backup, and recovery services are also driving the data centers market.
  • Hyper-scale data centers are being built more often worldwide to store massive volumes of data, opening up lucrative opportunities for business players. Many industries use hyper-scale data centers to increase computing power, memory, networking capabilities, and storage resources. The ability to effectively scale up computer workloads at a large scale and the physical infrastructure and distribution systems supporting the data centers are two of the many components of hyper-scale data centers.
  • Moreover, According to Flexera State of the Cloud Report 2023, 72% of companies' respondents stated they had deployed a hybrid cloud in their business. Migrating to hybrid cloud solutions often comes at the expense of operating private and public clouds.
  • The need for data centers has increased in recent years due to the high adoption of cloud services and the several government initiatives taken to promote the digital economy. In April 2022, Seagate Technology Holdings PLC and Phison Electronics Corporation expanded their solid-state drive portfolio to assist data management centers in reducing their total cost ownership. This new focus comes from a growing demand of businesses for higher-density and faster, more intelligent storage infrastructure to facilitate comprehensive business applications, such as hyperscale data centers, high-performance computing, and AI.
  • Environmental, cost and workforce-related challenges could restrain the global data center construction market. The environmental impacts are wide-reaching, impacting climate change, pollution, biodiversity, and natural resources. Though the challenges are broad, they present many opportunities for improvement and long-lasting positive impact. The cost of constructing the data center is also high, which could restrain small and medium enterprises from setting up a new center. The vendor's focus is on the regions that have lower costs for construction.
  • Furthermore, the COVID-19 pandemic struck when demand for data center capacity expanded rapidly, and it applied restrictions to constructing new facilities. There was a specific impact on the market, such as data network traffic increased the traffic by increasing usage of applications such as Zoom and Microsoft Office, among others. Moreover, the pandemic caused challenges in constructing a data center due to disruption in the supply chain, which slowed down the market's growth. However, post-pandemic, the demand for data capacity has more than tripled, and companies are shifting toward a hybrid cloud environment. Hence, the market has seen a resurgence in data center construction.

Data Center Construction Market Trends

Growing Adoption of Hyperscale Data Centers in Large Enterprises is Driving the Market's Growth

  • Hyperscale data centers are used in various industries to increase computing ability, memory, networking infrastructure, and storage resources. The features of hyperscale data centers include the physical infrastructure and distribution systems supporting the data centers for maximizing cooling efficiency and the ability to scale computing tasks efficiently and broadly.
  • Moreover, selling data center hardware designed to Compute Project specifications is booming. Advanced cooling solution for fast-growing power consumption and computing density in next-generation data centers with no changes in the extra facility is significantly contributing to the market's growth with OCP.
  • Moreover, market players are investing in hyperscale data centers, which is, in turn, driving segment growth. For instance, in May 2023, Kazuna Data Centers (Kazuna), the largest hyperscale data center network in the Middle East and North Africa, announced its plans to partner with Benya Group, a leading provider of integrated solutions, digital transformation and ICT infrastructure in Egypt to enter the markets of the Middle East and Africa and Egypt region. The new USD 250 million state-of-the-art data center will be Egypt's first hyperscale data center built in Maadi Technology Park, Egypt's first dedicated investment area.
  • In July 2023, Digital Realty, a leading provider of carrier- and cloud-neutral data center, interconnection, and colocation solutions, announced its partnership with GI Partners in order to start a corporation for the sale of a 65% interest in two hyperscale data center buildings, which are stabilized. The company will receive around USD 743 million in gross proceeds from the joint venture and the associated financing.
  • The increasing adoption of hyperscale data centers is a significant factor driving the construction market. Hyperscale data centers are large-scale centers designed to aid the large quantities of facts processing and garages required through present-day agencies and organizations. According to Cloudscene, as of July 2023, 5,344 data centers were in the United States, with a further 519 data centers located in Germany.
Data Center Construction Market - Number of data centers worldwide, by country, as of July 2023

North America Accounts for a Major Share

  • North America dominates the global market for building data centers. A strong economy and cutting-edge network infrastructure are critical drivers for the market's expansion. The United States dominates the regional market and has many significant cloud service providers, including, Google Inc., and Facebook. These businesses invest in building massive data centers and increased data storage and processing capabilities, which present enormous market prospects.
  • Furthermore, the growing demand for data security and privacy is driving the data centers' demand. According to the Identity Theft Resource Center, the count of data breaches in the United States in 2022 was 1,802. However, around 422 million individuals were affected by data breaches in the same year, including data leaks, breaches, and exposures. Although these are three separate events, they have one feature. An unauthorized malicious actor can access sensitive data under three circumstances. With the rise of data breaches and cyber threats, organizations and businesses seek secure and reliable data handling and storage solutions that only advanced data centers can offer.
  • The increasing investments in metro infrastructure in North America have provided optimal opportunities for constructing data centers. For instance, CyrusOne intended to build a 340,000 square-foot, 100 MW-capable mega data center in three phases in the Dallas metro area. Furthermore, customers are constantly experiencing increased sophisticated user demands for network and connectivity solutions that deliver faster and more reliable data connections across data centers in the United States.
  • Moreover, in November 2022, Metro Edge signed agreements with Clune Construction and other construction businesses to build and design data centers. The project will have all rights to it for the next few months and break ground shortly after.
  • The demand for Unified Communications-as-a-Service (UCaaS) solutions from telecom and business technology resellers in North America is also a factor in the market's expansion. To maximize system resilience to MSPs, VARs, ISPs, and interconnects, a player like SkySwitch offers white-label UCaaS from geographically varied sites.
Global Data Center Construction Market - Growth Rate by Region

Data Center Construction Industry Overview

The data center construction market is fragmented, consisting of several major players. With technological advancements and product innovations, many companies are increasing their presence in the market by securing new contracts and tapping new markets that cater to an intense rivalry. A few of the key players are IBM Corporation and SAS Institute Inc.

In May 2023, Data4 Group, the French leader in data center operations and investments in Europe, announced that it would build a new data center campus on the former Nokia site in Nosée, Essonne, France. The project, which plans to invest around EUR 1 billion by 2030, aims to revitalize 22 hectares of industrial and office land and underscore the Group's strong presence in Paris.

In April 2023, Microsoft announced the opening of its newest trusted cloud center in Poland, which will be the first in Central and Eastern Europe. Microsoft Poland's cloud region consists of three physical locations around Warsaw, each consisting of a single or several data centers. It ensures that data are stored in a country in compliance with the highest standards of security, privacy, and regulatory compliance.

In January 2023, TSL, as part of a US real estate investor Vantage's $2 billion investment for the construction of data centers in Europe, won an order to establish its own data center at Offenbach. After the first stage of construction, the Vantage Data Centre will have a capacity of 16 MW. A total of 3 multistory data centers with a maximum IT capacity of 55 MW rated power in an overall area of 60,000 m2 are planned on the campus.

Data Center Construction Market Leaders

  1. IBM Corporation

  2. SAS Institute Inc.

  3. DPR Construction Inc.

  4. Fortis Construction Inc.

  5. Turner Construction Co.

*Disclaimer: Major Players sorted in no particular order

Data Center Construction Market Concentration
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Data Center Construction Market News

  • October 2022: Kuko's group K2 partnered with Sinar Mas to construct, develop, and operate hyperscale data centers in Indonesia. The JV's first development, K2 Data Centre Jakarta 1 Campus, comprised four data center facilities in Bekasi Regency, Greater Jakarta, and delivered 58.8 MW of IT capacity at full build-out. The first phase is planned to be in service in early 2024.
  • June 2022 - Vantage Data Centers announced data center campuses in Poland and Germany. Vantage's 13-acre facility in Germany finished the first of two buildings. The site was to have 32MW spread across 250,000 square feet once it was fully finished (24,000 sqm).

Data Center Construction Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Buyers

      2. 4.2.2 Bargaining Power of Suppliers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Technology Snapshot

    4. 4.4 Assessment of Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for SMAC (Social, Mobile, Analytics, and Cloud) Applications

      2. 5.1.2 Rising Adoption of Hyperscale Data Centers

      3. 5.1.3 Major Initiatives Undertaken by Governments to Promote Digital Economy and Connectivity Infrastructure

    2. 5.2 Market Restraints

      1. 5.2.1 Environmental, Cost, and Workforce-related Challenges


    1. 6.1 By Infrastructure

      1. 6.1.1 Electrical Infrastructure

        1. UPS Systems

        2. Other Electrical Infrastructure

      2. 6.1.2 Mechanical Infrastructure

        1. Cooling Systems

        2. Racks

        3. Other Mechanical Infrastructures

      3. 6.1.3 Other Infrastructure

    2. 6.2 By Tier Type (Qualitative Trend Analysis)

      1. 6.2.1 Tier-I and -II

      2. 6.2.2 Tier-III

      3. 6.2.3 Tier-IV

    3. 6.3 By Size of Data Center

      1. 6.3.1 Small and Medium-scale Data Center

      2. 6.3.2 Large-scale Data Center

    4. 6.4 By End User

      1. 6.4.1 Banking, Financial Services, and Insurance

      2. 6.4.2 IT and Telecommunications

      3. 6.4.3 Government and Defense

      4. 6.4.4 Healthcare

      5. 6.4.5 Other End Users

    5. 6.5 By Geography

      1. 6.5.1 North America

        1. United States

        2. Canada

      2. 6.5.2 Europe

        1. United Kingdom

        2. Germany

        3. Norway

        4. Russia

        5. Rest of Europe

      3. 6.5.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. Australia

        5. Rest of Asia-Pacific

      4. 6.5.4 Latin America

      5. 6.5.5 Middle East and 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 Inc.

      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 Ltd.

      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 NTT Global Data Centers

      15. 7.1.15 CyrusOne Inc.

      16. 7.1.16 Cap Ingelec

    2. *List Not Exhaustive


**Subject to Availability
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Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The data center construction market is segmented by infrastructure (electrical infrastructure (UPS systems and other electrical infrastructure), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), and other infrastructure), by tier type (tier-I and tier-II, tier-III, and tier-IV), by the size of the data center (small and medium-scale data center and large-scale data center), by end-user (banking, financial services, and insurance, IT and telecommunications, government, and defense, healthcare, other end users), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Infrastructure
Electrical Infrastructure
UPS Systems
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Other Mechanical Infrastructures
Other Infrastructure
By Tier Type (Qualitative Trend Analysis)
Tier-I and -II
By Size of Data Center
Small and Medium-scale Data Center
Large-scale Data Center
By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Other End Users
By Geography
North America
United States
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Latin America
Middle East and Africa
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Data Center Construction Market Research FAQs

The Data Center Construction Market is projected to register a CAGR of 6.02% during the forecast period (2024-2029)

IBM Corporation, SAS Institute Inc., DPR Construction Inc., Fortis Construction Inc. and Turner Construction Co. are the major companies operating in the Data Center Construction Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Data Center Construction Market.

The report covers the Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Key challenges faced by the Data Center Construction Market include: a) High initial investment b) Increasing energy consumption c) Need for skilled labor to manage advanced data center technologies

Data Center Construction Industry Report

The Global Data Center Construction Market is on a significant upswing, fueled by a surge in cloud services demand, digital transformation, and stringent data security needs. This growth spans various segments including infrastructure type, with a notable emphasis on electrical infrastructure due to data centers' high power requirements. The market, catering to diverse organization sizes and sectors like banking, IT, and healthcare, is also segmented by data center tiers, with Tier 3 centers being a preferred choice for their cost-efficiency and reliability. The push towards renewable energy and the rise of edge computing, aiming to minimize latency by establishing smaller, strategically placed data centers, are opening new avenues for market expansion. Despite hurdles like high initial investments and location constraints, the sector, driven by an insatiable data demand, continues to thrive. According to Mordor Intelligence™ Industry Reports, the data center construction market is witnessing robust growth in market share, size, and revenue, with detailed analysis and forecasts available as a free report PDF download. This underscores the vibrant prospects for new data center construction projects worldwide.

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Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)