PUBLISHER: The Business Research Company | PRODUCT CODE: 2133587
PUBLISHER: The Business Research Company | PRODUCT CODE: 2133587
Data center construction comprises the various processes and activities required to plan, design, develop, and build a data center facility in accordance with operational requirements and applicable building standards. It involves establishing and developing a facility capable of housing computing systems, storage equipment, networking infrastructure, and other associated components necessary for data processing, storage, management, and communication.
The primary types of data center construction centers are small-scale data centers, medium-scale data centers, and large-scale data centers. Small data centers are defined as server storage facilities, rooms, and regional information centers with less than 5,000 square feet of computing floor area. The various infrastructure types include electrical infrastructure, networking infrastructure, and other infrastructure, along with power distribution and cooling systems. These facilities are utilized across banking, financial services and insurance (BFSI), energy, government, healthcare, manufacturing, IT and telecom, and other industries.
Tariffs are influencing the data center construction market by increasing the costs of imported electrical components, cooling units, steel structures, and networking hardware essential for data center development. Regions that depend on imported power and cooling systems, particularly Asia-Pacific and Europe, are facing higher capital expenditures across small-, medium-, and large-scale data centers. Nevertheless, tariffs may encourage domestic manufacturing of critical infrastructure components and accelerate the development of localized supply chains to reduce long-term dependence on imports.
The data center construction market research report is one of a series of new reports from The Business Research Company that provides data center construction market statistics, including data center construction industry global market size, regional shares, competitors with a data center construction market share, detailed data center construction market segments, market trends and opportunities and any further data you may need to thrive in the data center construction industry. This data center construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The data center construction market size has grown strongly in recent years. It will grow from $277.59 billion in 2025 to $296.13 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%.The growth in the historic period can be attributed to rising adoption of cloud computing, expansion of data generation and storage needs, increasing reliance on digital services, early development of enterprise data centers, and growth in telecom and BFSI infrastructure.
The data center construction market size is expected to see strong growth in the next few years. It will grow to $389.31 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to increasing investments in hyperscale facilities, rising adoption of edge computing, growing emphasis on sustainable cooling solutions, expanding AI-driven workloads, and increasing deployment of modular and prefabricated data centers. Major trends in the forecast period include continued expansion of hyperscale data center development, increasing demand for edge data centers, wider adoption of modular construction methods, greater emphasis on energy-efficient cooling technologies, and growing deployment of high-density server infrastructure.
The rising demand for cloud services is expected to drive the growth of the data center construction market in the coming years. Cloud services comprise a wide range of computing resources, applications, and digital capabilities delivered over the internet on an on-demand basis. The growing volume of digital data, together with the increasing use of cloud computing, big data analytics, and Internet of Things (IoT) applications, is creating greater requirements for data storage capacity. The increasing demand for cloud services is encouraging data center construction as service providers expand physical infrastructure to meet customer requirements while ensuring high performance, reliability, and security. For instance, in June 2024, according to AAG IT Services, a UK-based provider of IT and digital transformation services, Google Cloud recorded revenue of $6.87 billion in Q3 2022, increasing from $4.99 billion in the same period of the previous year. In Q4 2022, Google Cloud revenue increased further to $7.32 billion, representing 32% year-over-year growth. Therefore, the increasing demand for cloud services is expected to support the growth of the data center construction market.
Key companies operating in the data center construction market are concentrating on technological advancements in products by implementing innovations such as Universal Data Hall Design (UDHD) to strengthen their market share. Universal Data Hall Design (UDHD) refers to a data center design that incorporates typical colocation components while emphasizing flexibility and scalability. UDHD features a slab floor with perimeter cooling, making it suitable for large, full-hall high-performance computing (HPC) application deployments. For example, in August 2023, DataBank Holdings Ltd., a US-based provider of information management services, launched Universal Data Hall Design (UDHD), an innovative approach to high-density data center construction designed to support high-performance computing (HPC). Universal Data Hall Design (UDHD) enables HPC by providing enterprises with the flexibility to accommodate the specific deployment requirements of their workloads.
In August 2024, Turner Construction, a US-based construction services company, acquired Dornan Engineering Group for an undisclosed amount. The acquisition of Dornan by Turner created a business of significant scale across Europe, supporting the delivery of an expanded portfolio and a broader range of services. By integrating Dornan's complementary capabilities, Turner identified significant opportunities to increase its presence across the European market and strengthen relationships with both existing and prospective clients. Dornan Engineering Group is an Ireland-based company specializing in data center construction.
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., 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.
North America was the largest region in the data center construction market in 2025. The regions covered in the data center construction market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the data center construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center construction market includes revenues earned by entities by planning, developing and providing construction assistance for extremely profitable and effective next-generation data center. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center construction market also includes sales of generators, power infrastructure, cooling infrastructure and physical security. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Data Center Construction Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses data center construction market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for data center construction ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The data center construction market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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