United States Data Center Construction Market Report and Forecast 2024-2032

United States Data Center Construction Market Outlook

The United States data center construction market size reached approximately USD 69.56 billion in 2023. The market is estimated to grow at a CAGR of 6.3% in the forecast period of 2024-2032, reaching a value of around USD 120.83 billion by 2032.

Key Trends in the Market

Data center construction refers to the set of processes which are involved in the building and construction of a data center facility. It focuses on the capacity of the data center to house computers, servers, and network equipment, among other components, as well as its robust structure that can withstand natural calamities like earthquakes and floods, among others.

• Growing construction of hyperscale data centers, due to the rising demand for cloud services, is a major factor driving the United States data center construction market growth. The presence of major cloud service providers such as AWS, Google Cloud, and Microsoft Azure, among others, in the country fuels the necessity for scalable data centers that can handle extensive storage and processing capabilities.

• Increased implementation of sustainable practices in data center construction to lower its environmental impact is another crucial trend aiding the market expansion. This involves using green materials such as timber framing as well as other organic materials in the construction process. It also includes the practice of modular construction, which involves off-side building in a controlled environment as well as reusing unused sections to reduce waste and conserve resources.

• Rising partnerships and agreements between market players and real estate firms to construct high-end data centers also support the United States data center construction market demand. For example, in December 2022, Metro Edge Development Partners, a real estate company, announced its partnership with Corgan, Clune Construction, Power Construction and Ujamaa Construction to build the $257 million state-of-the-art data center in the Illinois medical district. This data center is expected to address the technological needs of the local and regional education, finance, healthcare, and government sectors.

United States Data Center Construction Market Segmentation

Based on infrastructure, the market is divided into electrical infrastructure, mechanical infrastructure, and general infrastructure. The electrical infrastructure is further segmented based on type into UPS systems and others, whereas the mechanical infrastructure is further segmented based on type into cooling systems, and racks, among others.

On the basis of size, the market is bifurcated into small and medium-size data center and large data center. Based on tier type, the market is classified into Tier I and II, Tier III, and Tier IV. On the basis of end use, the market is categorised into BFSI, IT and telecom, government and defence, and healthcare, among others.

The major regional markets of data center construction in the United States include New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States data center construction market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• IBM Corp.

• PCL Constructors Inc.

• DPR Construction

• Clune Construction Company

• Jacobs Solutions Inc.

• HITT Contracting Inc

• J.E. Dunn Construction Company 

• HOCHTIEF AG (Turner Construction Company)

• Hensel Phelps

• AECOM

• Others

Market Share by Tier Type

Tier 3 data center occupies a significant portion of the United States data center construction market share as it offers the support of complex features at an affordable price compared to Tier 4 data center. These data centers are also equipped with N+1 redundancy in which if the primary component stops working, a backup component starts operating to ensure the continuous working of data centers.

Additionally, Tier 3 data centers offer a uniform distribution of intensive workload to ensure that the server works efficiently.

Market Share by End Use

As per the United States data center construction market analysis, the healthcare sector accounts for a substantial market share, due to the mandate of electronic health records (EHR) of patients, which fuels the demand for cloud services. The digitalisation of data in healthcare has also fuelled the online data volume, which augments the demand for hyper-scale data center facilities that can store large amounts of data.

Meanwhile, the IT and telecom sector is expected to witness robust growth in the coming years, due to the proliferation of the internet and 5G technology.

Competitive Landscape

IBM Corp., incorporated in 1911, is a multinational technology company, headquartered in New York, the United States. Its well-known solutions include business automation, DevOps automation, IT automation, and application delivery, among others. The company also aids in the deployment of data centers as well as the expansion of existing center capacities.

PCL Constructors Inc. is a digital and sustainable construction contract company, founded in 1906 and based in Alberta, Canada. The company offers its services in the sectors of agribusiness, aviation and transportation, food and beverages, education, and healthcare, among others. The company offers its clients expert planning, in-house expertise, and preconstruction planning for data center projects.

DPR Construction, established in 1990 and headquartered in California, the United States, is a commercial contractor for construction. The company offers its solutions in the industry verticals of healthcare, high education, hospitality, and manufacturing, among others. Some of its renowned data center projects include the Facebook Gallatin data center, Meta Henrico data center, and Meta Forth data center.

Other United States data center construction market players include Clune Construction Company, Jacobs Solutions Inc., HITT Contracting Inc., J.E. Dunn Construction Company, HOCHTIEF AG (Turner Construction Company), Hensel Phelps, and AECOM, among others.

Key Highlights of the Report