Consumer Insights
Uncover trends and behaviors shaping consumer choices today
Procurement Insights
Optimize your sourcing strategy with key market data
Industry Stats
Stay ahead with the latest trends and market analysis.
The global data center construction market size reached approximately USD 66.23 billion in 2023. The market is projected to grow at a CAGR of 7.2% between 2024 and 2032, reaching a value of around USD 123.82 billion by 2032.
Base Year
Historical Year
Forecast Year
Global Data Center Construction Market Report Summary | Description | Value |
Base Year | USD Billion | 2023 |
Historical Period | USD Billion | 2018-2023 |
Forecast Period | USD Billion | 2024-2032 |
Market Size 2023 | USD Billion | 66.23 |
Market Size 2032 | USD Billion | 123.82 |
CAGR 2018-2023 | Percentage | XX% |
CAGR 2024-2032 | Percentage | 7.2% |
CAGR 2024-2032 - Market by Region | Asia Pacific | 7.8% |
CAGR 2024-2032 - Market by Country | USA | 7.6% |
CAGR 2024-2032 - Market by Country | China | 7.5% |
CAGR 2024-2032 - Market by Infrastructure | Electrical Infrastructure | 8.0% |
CAGR 2024-2032 - Market by Size | Large Scale Data Center | 7.7% |
Market Share by Country 2023 | UK | 3.5% |
Data center construction refers to the process of building a physical facility to maintain essential IT infrastructure that is responsible for storing, managing, and running various applications and services. It is supported by a robust network of uninterruptible power supplies, security systems, and proper ventilation and cooling systems, among others, to ensure its smooth functioning. It provides multiple benefits to businesses, including operational flexibility and significant cost savings.
The market is being driven by developments in cloud-based technologies, the rise of remote working culture, and the proliferation of IoT devices. Hyperscalers such as Google, Meta and Microsoft are witnessing a surge in demand for their services, which is positively influencing the data center construction market.
Business productivity has steadily improved with time as the construction of data centers has enabled people to collaborate on important projects remotely. Besides, the increasing popularity of smart devices is also favouring the demand for data centers.
Improvements in energy efficiency; establishment of high load capacity; rising development of weather-resistant data centers; and the growing popularity of modular data centers are the major trends impacting the data center construction market growth.
Date | Company | Event |
Jan. 26th 2024 | AWS | Announced an investment of USD 10 billion for the construction of two data centers in Mississippi, the United States. |
Dec. 1st 2023 | CyrusOne | Began the construction of its 5th data center in Frankfurt, Germany. |
Nov. 20th 2023 | Green Mountain | Announced the construction of a new data center facility in Enebakk as a part of its data center expansion plan. |
Oct. 4th 2023 | Black Box | Revealed its plans to enter the digital infrastructure and data center integration space in India, which is expected to receive investments worth $1.5 billion according to Indian Credit Rating Agency (ICRA). |
Market Growth Driver | Description |
Improvements in energy efficiency | Companies are developing innovative solutions to minimise annual power consumption by data centers and make them more sustainable. |
Rise of high-load capacity data centers | Increasing use of artificial intelligence is expected to drive the construction of high-load capacities data centers. |
Weather-resistant data centers | Increasing incidences of natural disasters have prompted data center construction companies to build facilities that can withstand extreme weather conditions. |
The development of modular data centers | There is a shift towards the construction of modular data centers that can be constructed from prefabricated modules and are not impacted by external environmental factors. |
A data center consumes 205 terawatt hours + of electricity each year. This is more than the annual energy consumption of Ireland, Denmark, or Taiwan. Many companies, including Intel and Dell, are developing modular data centers, which can enable them to extend the life of their computing ecosystems by merely changing the HPU (Host Processing Unit).
AI compute differs from traditional compute in terms of power consumption, heat emission, and space requirements. The design of high load capacity data centers requires extensive consultations with stakeholders during the designing stage to ensure smooth collaboration between operations, security, and other teams, which prevents the company from financial pitfalls.
Besides, with the usage of high quality materials and by leveraging AI for data center monitoring operations, companies can expect significant gains from constructing data centers in the forecast period.
“Global Data Center Construction Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup | Categories |
Infrastructure | Electrical Infrastructure, Mechanical Infrastructure, General Infrastructure |
Tier Type | Tier I and II, Tier III, Tier IV |
Size | Small and Medium Scale Data Center, Large Scale Data Center |
End Use | Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defence, Healthcare, Others |
Region | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
CAGR 2024-2032 - Market by | Country |
USA | 7.6% |
China | 7.5% |
UK | 7.4% |
Brazil | 7.1% |
Germany | 6.9% |
Canada | XX% |
France | XX% |
Italy | XX% |
Japan | XX% |
India | XX% |
Australia | XX% |
Saudi Arabia | XX% |
Mexico | 6.5% |
Electrical infrastructure is further divided based on type into UPS systems and others, whereas mechanical infrastructure is further classified on type into cooling systems and racks, among others.
Small and medium scale data centers are expected to dominate the data center construction market share in the coming years.
Small and medium scale data centres are expected to constitute a major market share in the coming years. This can be attributed to the proliferation of latency-sensitive services provided digitally, which are necessitating the need for establishing edge computing data centers at locations which are the closest to the consumer.
Over the forecast period, thousands of small and medium scale data centers are expected to be established by companies, which can impact the data center construction market growth favourably. As the challenges surrounding manpower shortages and supply chain delays ease, the construction of large scale data centers is also expected to register a significant growth. Such data centers play a critical role in storing and processing large amounts of data which are required by multinational companies.
The BFSI sector is a significant end-user of data center construction due to the digitisation of banking services
The banking, financial services, and insurance sector is expected to lead the market in the coming years. The digitalisation of banking services and products has created the need for maintaining an online customer profile with records of their previous interactions with the bank. Data centers have also become important for storing sensitive customer information, including video KYCs and ATM card details, aiding the data center construction market expansion.
The IT and telecommunications industry is also expected to remain a significant end-user of data centers. Data centers enable high speed processing and connectivity of data, while ensuring data safety and security of transmission. A similar trend of growth is also expected to occur for the healthcare, and government and defence sectors, among others.
Major market players are making significant investments in land acquisition and creating sustainable data centers
Company Name | Year of Incorporation | Location | Services Provided |
AECOM | 1990 | Texas, United States | Planning, consulting, design engineering and architectural services |
IBM Corp. | 1911 | New York, USA | Hybrid cloud and AI business services |
Jacobs Solutions Inc. | 1947 | Texas, United States | Consulting services, cyber warfare solutions, connected mobility solutions, advanced digital technologies |
Skanska AB | 1887 | Stockholm, Sweden | Construction and development of residential and commercial properties, critical national infrastructure |
Other key players in the global data center construction market include HITT Contracting Inc., Hensel Phelps, PCL Constructors Inc., Clune Construction Company, J.E. Dunn Construction Company, Turner Construction Company, Holder Construction Group, LLC, and DPR Construction, among others.
Europe is expected to dominate the market in the coming years amid increasing investments in data centres by end-use sectors. For instance, in September 2023, Virtus Data Centers announced an investment of 3 billion euros in Germany for establishing a data center campus.
Similarly, in September 2023, Australia’s largest pension fund provider, AustralianSuper, announced an investment of 1.5 billion euros into the Vantage Data Center’s operations in Europe, Middle East, and Africa. With increasing demand for services provided by major cloud based companies, the global data center construction market demand is expected to grow significantly in the forecast period.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
Breakup by Infrastructure |
|
Breakup by Tier Type |
|
Breakup by Size |
|
Breakup by End Use |
|
Breakup by Region |
|
Market Dynamics |
|
Competitive Landscape |
|
Companies Covered |
|
Data Center Construction Market Size
Data Center Construction Market Trends
Data Center Construction Market Share
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2023, the market reached an approximate value of USD 66.23 billion.
The market is estimated to grow at a CAGR of 7.2% between 2024 and 2032.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach a value of around USD 123.82 billion by 2032.
The market is being driven by the developments in cloud-based technologies, rise of remote working culture, and proliferation of IoT devices.
The key trends aiding the market expansion include improvements in energy efficiency, establishment of high load capacity and weather resistant data centers, and the development of modular data centers.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major sizes of data center include small and medium scale data center and large scale data center.
The major players in the market are AECOM, HITT Contracting Inc., Jacobs Solutions Inc., Hensel Phelps, IBM Corp., PCL Constructors Inc., Skanska AB, Clune Construction Company, J.E. Dunn Construction Company, Turner Construction Company, Holder Construction Group, LLC, and DPR Construction, among others.
Purchase Full Report
Datasheet
Single User License
One User
Five User License
Five Users
Corporate License
Unlimited Users
How To Order
Our step-by-step guide will help you select, purchase, and access your reports swiftly, ensuring you get the information that drives your decisions, right when you need it.
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Australia
63 Fiona Drive, Tamworth, NSW
+61 448 06 17 27
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City,1226.
+63 287899028, +63 967 048 3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84865399124
United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61 448 06 17 27
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63 287899028, +63 967 048 3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84865399124
Share