What Has Been the Growth of the Data Center Construction Market So Far?
The data center construction market has seen considerable growth due to a variety of factors.
• The size of the data center construction market has seen robust growth in the past years. The market is expected to expand from $260.49 billion in 2024 to $277.18 billion in 2025, with a compound annual growth rate (CAGR) of 6.4%.
The growth observed in the historic period is due to factors such as increasing demand for data storage and processing, heightened investments in digital infrastructure, globalization, and the need for colocation data centers.
How Will the Data Center Construction Market?
The data center construction market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the data center construction market is predicted to experience robust expansion in the upcoming years, raising its worth to $360.41 billion by 2029, with a compound annual growth rate (CAGR) of 6.8%.
The expansion during the forecast period can be traced back to the growing digital economy, the broadening global data center, the shift towards cloud computing, increased need for edge data centers, and 5g rollout. The forecast period will also see major trends such as sustainability and green design, modular data centers, security and compliance, and data-center-as-a-service.
Which Factors Are Boosting Growth In The Data Center Construction Market?
Anticipations of a data center construction market growth are rising due to an expected surge in data use in cloud computing. The term data usage pertains to the quantity of data uploaded or downloaded using a device. The growing need for data is fueling the business of constructing data center buildings to accommodate more data center areas. In particular, a legal technology survey by the American Bar Association, a US-based institution for lawyers and law students, in November 2022, indicated a significant rise in overall cloud data usage from 60% in 2021 to 70% in 2022. Solo cloud users also saw an increase from 52% to 84% within a year. As such, it is clear that the increase in cloud computing data usage is a key driver for the expansion of the data center construction market.
Driver of the Data Center Construction Market: Expansion Pushed by Rising Cloud Services Demand
What Key Areas Define The Segmentation Of The Global Data Center Construction Market?
The data center construction market covered in this report is segmented –
1) By Data Center Type: Small-Scale Data Centers, Medium-Scale Data Centers, Large-Scale Data Centers
2) By Infrastructure: Electrical Infrastructure, Networking Infrastructure, Other Infrastructures
3) By Power Distribution And Cooling Infrastructure: Power Distribution, Cooling
4) By End-Use: Banking, Financial Services and Insurance (BFSI), Energy, Government, Healthcare, Manufacturing, IT And Telecom, Others End-Uses
Subsegments:
1) By Small-Scale Data Centers: Edge Data Centers, Micro Data Centers
2) By Medium-Scale Data Centers: Colocation Data Centers, Hybrid Data Centers
3) By Large-Scale Data Centers: Enterprise Data Centers, Hyperscale Data Centers
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What Trends Are Shaping The Data Center Construction Market?
Key operators in the data center construction market are focusing on technological product advancement, embracing pioneering innovations such as Universal Data Hall Design (UDHD) to bolster their market presence. UDHD, a specific design for data centers, incorporates traditional colocation components while accentuating adaptability and scalability. The design includes a slab floor complete with perimeter cooling, rendering it ideal for the deployment of large scale, full-hall, high-performance computing (HPC) applications. For example, DataBank Holdings Ltd., an American company offering information management services, unveiled their new Universal Data Hall Design (UDHD) in August 2023. This novel approach to high-density data center construction was tailored to support high-performance computing (HPC). UDHD facilitates HPC by offering businesses the adaptability required to manage any deployment necessitated by their workloads.
Who Are the Key Players In The Data Center Construction Market?
Major companies operating in the data center construction market are:
• Google LLC
• Amazon Web Services Inc.
• Microsoft Azure
• The International Business Machines Corporation
• Schneider Electric SE
• Meta Platforms Inc.
• NTT Ltd.
• Turner Construction Co
• STO Building Group Inc.
• Equinix Inc.
• DPR Construction Inc.
• Iron Mountain Inc.
• Digital Realty Trust Inc.
• Stantec Inc.
• SAS Institute Inc.
• Zayo Group Holdings Inc.
• Gensler
• CyrusOne LLC
• Hensel Phelps Construction Co.
• Cyxtera Technologies LLC
• Fortis Construction Inc.
• QTS Realty Trust Inc.
• HITT Contracting Inc.
• TierPoint LLC
• Sabey Data Center Properties LLC
• Flexential Corp.
• Holder Construction Group LLC
• Cologix Inc.
• Alfa Tech Consulting Engineers Inc.
• ipSpace.net AG.
What Is The Most Dominant Region In The Data Center Construction Market?
North America was the largest region in the data center construction market in 2024. The regions covered in data center construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
