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Data Center Construction Market Size By Data Center, By Infrastructure, By End Use, By Tier, Growth Forecast, 2026 - 2035
Report ID: GMI5949
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Published Date: December 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2025
Companies covered: 28
Tables & Figures: 165
Countries covered: 25
Pages: 210
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Data Center Construction Market
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Data Center Construction Market Size
The global data center construction market was valued at USD 227.6 billion in 2025 and is set to expand from USD 241.1 billion in 2026 to USD 434.7 billion by 2035, growing at an 6.8% CAGR over 2026–2035, according to latest report published by Global Market Insights Inc.
The expansion of public, private, and hybrid cloud services is a primary driver of data center construction, as enterprises migrate workloads away from on-premises infrastructure. Cloud service providers continuously add capacity through large-scale hyperscale campuses and regional facilities to meet demand for compute, storage, and resilience. This sustained cloud adoption directly fuels new builds, phased expansions, and standardized, repeatable data center designs.
AI, machine learning, and high-performance computing workloads are fundamentally reshaping data center design and construction requirements. These workloads demand significantly higher power density, advanced cooling systems, and robust electrical infrastructure, driving the development of AI-ready data centers. As organizations scale AI training and inference, construction activity accelerates to support next-generation, high-specification facilities.
Rapid growth in data generation from streaming, e-commerce, IoT, fintech, and enterprise digitalization is increasing demand for storage, processing, and redundancy. This surge in digital services requires expanded data center capacity across both core and regional markets. As a result, construction activity rises to support distributed architectures, disaster recovery, and low-latency service delivery.
Enterprises are increasingly shifting from owning and operating data centers to leasing capacity from colocation providers to reduce capital expenditure and operational complexity. This transition drives construction of multi-tenant, carrier-neutral facilities designed for scalability and high interconnection density. The growing preference for outsourced infrastructure accelerates demand for new colocation developments and rapid capacity expansion.
In February 2024, Amazon Web Services announced a multi-billion-dollar investment (approximately USD 8 billion) in Indiana to develop large-scale, AI-ready hyperscale data centers. The project was driven by growing AI training and cloud demand, requiring high-density power infrastructure, advanced cooling, and campus-style construction directly illustrating how AI- and cloud-driven hyperscale expansion is driving data center construction in North America.
In North America, rapid expansion by hyperscale cloud and AI service providers is the primary driver of data center construction. Large-scale AI training workloads, strong enterprise cloud adoption, and early AI commercialization are driving continuous hyperscale campus build-outs, particularly in the United States, to support high-density, power-intensive infrastructure.
3.5% market share
Data Center Construction Market Trends
Multi-building campuses with 200–500 MW footprints and in planning, gigawatt-scale sites are now common in the data center construction market as hyperscalers front-run demand with multi-year reservations and land banking of 100–200+ acres per phase. In North America, during this time period, there has been substantial growth in construction activity and an overall increase in the number of projects that are being pre-leased (over 70%). The increase in the overall number of new development projects reflects the current low supply environment. Due to the slow connection timeframes of electric distribution systems, a trend has developed of developers now expanding into areas with an abundance of renewable power to mitigate these extended waiting periods for project completion.
AI training clusters demand 30–100+ kW per rack, with leading AI systems approaching 120 kW per rack and roadmap discussions of 1 MW per rack by decade’s end in experimental contexts, which flips design from average to peak-load engineering. Cooling accounts for 35–40% of data center power, so direct-to-chip plates (60–100 kW/rack) and immersion tanks (100–150+ kW/rack) are scaling, with CDUs moving into critical-path procurement planning. Look closer and you’ll see medium-voltage distribution, 415V three-phase rack power, busway distribution, and selective UPS strategies (battery coverage for controls rather than full compute) spreading to cut losses and capex.
Prefabricated electrical rooms, skidded UPS/gensets, and modular data halls shift labor to factories, improving QA and cutting on-site duration from quarters to months for certain blocks in the data center construction market. The numbers tell us factory-built content can reach 40–80% on optimized projects, with 1–2 month deployments achievable for micro-modular configurations that meet edge and remote requirements. Because of this, emerging markets are leaning into modular to backfill scarce skilled trades, while AI-dense builds rely on precision-fabricated liquid cooling loops that are tough to field-assemble at scale.
Generative AI networks require over 10x more optical fiber than legacy facilities, which elevates bend-insensitive fiber, pre-connectorized harnesses, and dense tray management in new builds and retrofits. Take the explosion of 400/800 G interconnects and the move toward 1.6 Tbps fabrics network rooms and pathways are being sized differently to keep GPU clusters synchronized at scale.
Data Center Construction Market Analysis
Based on infrastructure, the market is divided into electrical infrastructure, mechanical infrastructure, networking infrastructure, and others. The mechanical infrastructure segment dominated the market accounting by around 37% in 2025 and is expected to grow at a CAGR of 5.8% from 2026 to 2035.
Based on data center, the data center construction market is categorized into small-scale, medium-scale, large-scale data center. Small-scale data center segment dominates the market with around 43% share in 2025, and the segment is expected to grow at a CAGR of 5% between 2026 & 2035.
Based on end use, the data center construction market is divided into BFSI, energy, government, healthcare, manufacturing, IT & telecom and others. BFSI segment dominate the market and was valued at USD 55.6 billion in 2025.
Based on tier, the data center construction market is divided into tier 1, tier 2, tier 3, and tier 4. The tier 3 segment dominates the market and was valued at USD 75 billion in 2025.
US dominated North America data center construction market with revenue of USD 59.5 billion in 2025.
UK data center construction market will grow tremendously with CAGR of 4.1% between 2026 and 2035.
The data center construction market in China will experience robust growth during 2026-2035.
The data center construction market in Brazil will experience significant growth between 2026 & 2035.
The data center construction market in UAE is expected to experience robust growth between 2026 & 2035.
Data Center Construction Market Share
Data Center Construction Market Companies
Major players operating in the data center construction industry include:
Data Center Construction Industry News
The data center construction market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:
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Market, By Data Center
Market, By Infrastructure
Market, By End Use
Market, By Tier
The above information is provided for the following regions and countries: