PUBLISHER: Grand View Research | PRODUCT CODE: 1986356
PUBLISHER: Grand View Research | PRODUCT CODE: 1986356
The global data center construction market size was estimated at USD 261.31 billion in 2025 and is projected to reach USD 662.71 billion by 2033, growing at a CAGR of 12.7% from 2026 to 2033, due to the rapid migration of enterprises to cloud-based architectures. Organizations across industries are increasingly adopting hybrid and multi-cloud environments to enhance scalability, resilience, and operational efficiency.
This shift requires new hyperscale and edge facilities that can support high workloads, real-time analytics, and low-latency applications. The exponential increase in data generated from streaming platforms, social media, connected devices, and enterprise applications is driving the need for expanded data center capacity. Moreover, the rise of artificial intelligence (AI), machine learning (ML), and generative AI models is significantly increasing compute requirements, particularly for GPU-powered facilities. These workloads necessitate high-performance computing (HPC) infrastructure, specialized chipsets, and enhanced power and cooling capabilities, thereby stimulating new construction and retrofitting of existing facilities.
The global rollout of 5G networks is accelerating the deployment of edge data centers closer to end users. Industries such as autonomous vehicles, smart cities, telemedicine, and industrial automation require ultra-low latency and real-time processing, which traditional centralized data centers cannot efficiently provide. This shift toward distributed computing architectures is fueling investments in smaller, modular, and geographically dispersed data centers.
Major cloud service providers including Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta are aggressively expanding their global footprint through large-scale data center campuses. In parallel, colocation providers are investing heavily in new facilities to cater to enterprises that prefer outsourced infrastructure. This dual expansion by hyperscalers and colocation firms is a structural driver of sustained construction activity in the sector. For instance, in June 2025, Amazon announced plans to invest about USD 13 billion (AUD 20 billion) from 2025 to 2029 to expand, operate and maintain its data center infrastructure across Australia, marking a global technology investment and aiming to support surging demand for cloud computing and artificial intelligence (AI) services, accelerate AI adoption and help modernize organizations of all sizes while also investing in renewable energy projects like three new solar farms to power the expanded facilities.
Global Data Center Construction Market Report Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the data center construction market report based on infrastructure, tier, end use, and region.