Data Center Construction Market Size (2025-2030)

The Data Center Construction Market was valued at USD 250.8 billion in 2024 and is projected to reach a market size of USD 417.9 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 10.7%.    

Data centers stand as vitally important hubs, sheltering the core IT components that drive contemporary digital operations. These centers offer a safe place for servers, data storage solutions, and networking devices, which all work in harmony to support everything from business applications to cloud services. Constructing such centers now involves integrating various specialized systems. Power management is essential, ensuring a continuous and reliable supply to prevent downtime. Cooling mechanisms are just as important, maintaining ideal temperatures to protect hardware from overheating and to keep everything running smoothly. Connectivity is also key, requiring high-speed, dependable networks for quick data transfer and communication. Then, physical and cyber security measures are needed to prevent unauthorized access and protect sensitive information.Modularity is also a key element, allowing for flexible scaling and easy upgrades as needs change. Also, sustainability is an overriding principle, with efforts made to reduce environmental impact through green building materials, waste reduction, and water conservation. These strategies show a commitment to meeting current operational needs while addressing both environmental concerns and striving for improved performance.

Key Market Insights:

In 2024, over 40% of investments in new data centers went to hyperscale facilities. 50% of the new data centers built that year included renewable energy or were certified as green.

Modular and prefabricated data centers are becoming more accepted because they scale well and take less time to build.

Cloud providers like AWS, Microsoft Azure, and Google Cloud are driving much of the market demand.

When building new data centers, there's an increasing focus on being efficient with energy use. New designs include things like advanced cooling tech, efficient power distribution, and renewable energy sources.

Market Drivers:

Expansion of Large-Scale and Local Infrastructure is driving the data center construction market.

Cloud service companies are using large-scale models more often, and local facilities are popping up due to 5G and IoT. Because of this, construction is speeding up to help applications that need quick response times. Large-scale projects are having a big impact on where money is invested. Meanwhile, local centers are making it possible to do real-time computing in cities and far-off places. These local centers are vital as they bring computing closer to where it's needed, cutting down on delays and improving how well things work.

The Ascent of Cloud Computing and Big Data Examination is driving the data center construction market.

The digital landscape is changing. The amount of data we make keeps going up fast because of digital changes, the Internet of Things (IoT), and business software. Because of this, groups are putting money into cloud-based systems. This move has caused data centers to grow worldwide at an increasing rate. Those in charge of these centers focus on creating systems that can grow and work well to handle current computing needs.

Market Restraints and Challenges:  

Constructing data centers presents multiple considerable obstacles. The initial financial investment is substantial, and their ongoing operation requires a great amount of energy. Another issue is the shortage of people with the skills required to build and maintain these facilities. Government rules about energy use and pollution add extra layers of difficulty to the design process. For example, data centers in areas with strict environmental regulations might need to invest in more efficient cooling systems, or they may be required to use renewable energy sources. Delays in getting important parts can also cause problems with schedules and budgets. Things such as heating, ventilation, and air conditioning (HVAC) systems, as well as backup generators, are often delayed. Supply chain issues can result from a variety of problems, such as factory closures, transportation problems, or shortages of raw materials. To deal with these challenges, data center operators might need to find alternative suppliers, keep a larger inventory of parts, or adapt plans to accommodate delays. The cumulative effect of these difficulties requires careful planning and creative problem-solving on the part of data center developers and operators. Overcoming these obstacles is essential for constructing and maintaining the infrastructure required for today's data-driven society.

Market Opportunities:

The construction market is experiencing growth through eco-friendly methods, modular builds, and AI-driven management. Firms are growing by adding renewable energy and expanding into new regions because of a rising need for data storage solutions. Using green methods helps the environment and saves money over time because it cuts down on energy use and waste. Modular builds allow for faster building, better quality, and less on-site labour costs. AI-run facility management makes energy use better, improves when things get fixed, and makes building performance better overall. Going to renewable energy lowers the need for fossil fuels and lowers carbon waste, which aligns with overall sustainability goals. Growing into new regions lets firms get into new markets that could grow fast. The need for hybrid cloud setups comes from a need for more data safety and business stability.

DATA CENTER CONSTRUCTION MARKET REPORT COVERAGE:

Data Center Construction Market Segmentation:

Data Center Construction Market Segmentation by Technology:

• Raised Floor Systems
• Rack-based Cooling
• Hot/Cold Aisle Containment
• Modular/Containerized Construction
• Immersion Cooling

In 2024, rack-based cooling continues to be the dominant common choice for data centers because it's good at getting rid of heat, it's easy to fix and keep running, and it works with the setups that are already in place. This method involves using air or liquid to cool the equipment inside each rack. Air-cooled systems are cheaper to set up, but liquid-cooled systems are better at handling high heat loads. Regular maintenance, like changing filters and checking fans, keeps these systems working well.

But immersion cooling is becoming more popular, especially as data centers pack more equipment into smaller spaces. Organizations are trying to find thermal management options that are both eco-friendly and very efficient. Immersion cooling involves putting servers directly into a non-conductive liquid, which pulls heat away much better than air or traditional liquid cooling methods. There are two main types: single-phase, where the liquid stays in the same state, and two-phase, where the liquid boils and condenses to remove even more heat. Even though immersion cooling has a high initial cost and needs infrastructure changes, it can greatly lower energy use and save space, making it a good option for future data centers.

Data Center Construction Market Segmentation by Application:

• IT & Telecom
• BFSI
• Healthcare
• Energy & Utilities
• Government & Defense
• Retail & E-commerce
• Manufacturing
• Others

In 2024, the IT and Telecom sector stood out as the top application segment, generating upwards of 35% of the total revenue. This was mainly because cloud services were becoming widespread, and companies were upgrading their network systems. Many firms shifted to cloud-based solutions to improve data storage, cooperation, and overall speed. As businesses keep growing and the need to manage huge amounts of data rises, cloud setups give flexible and affordable ways to handle their IT needs. The move to modernize enterprise networks—refreshing old systems with new technology—also helped IT and Telecom’s profits.

The Healthcare industry is growing quickly, showing the highest rates of growth. The need for safe and adaptable data systems is going up. Hospitals and clinics need to manage patient information, make telemedicine easier, and use real-time data analysis. Electronic Health Records (EHR) systems must protect patient data while keeping it accessible to doctors. Telemedicine uses safe platforms to offer remote consultations, growing access to healthcare, especially for people in rural areas. Real-time data analysis helps watch patient results, spot disease outbreaks, and improve healthcare delivery. As healthcare gets more focused on technology, buying dependable and expandable data systems becomes even more vital.

Data Center Construction Market  Segmentation by End-User:

• Residential
• Commercial
• Industrial

The commercial sector currently leads in market share, largely because many businesses are setting up their own data centers, using shared data center spaces, and relying on services that require a lot of data. These factors cause a high demand for data storage and processing capabilities. Companies want to keep up with data growth, improve their service delivery, and make sure their data operations are always reliable. This has led to extensive building and upgrading of data infrastructure to handle all digital action.

The industrial sector is also growing at a quick pace. The move toward Industry 4.0, which involves automation and smarter manufacturing processes, means more companies need local computing power closer to their operations. For example, factories and logistics centers are putting edge computing systems to process data right where it’s generated. This helps reduce delays, support real-time decision-making, and improve the efficiency of automated systems. As the industry keeps adopting these technologies to enhance productivity and connectivity, the industrial part of the computing market is expected to expand.

Data Center Construction Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

North America is in the lead because it's had projects like Ivanpah and Crescent Dunes in the U.S. for a while now. The government has been giving incentives. There's constant funding going into solar research and development, so the region is a leader when it comes to CSP infrastructure and coming up with new ideas.

In the Asia-Pacific, China's large-scale projects are a big part of why that region is growing so fast. Government support in India and Australia helps, too. These countries see CSP to meet their growing energy needs in a cleaner way, which is why they are making it a priority. The difference in how each region approaches CSP shows there are different ways to grow and accept the technology. This depends on things like how the government acts, how the energy market is, and what technical skills are available.

COVID-19 Impact Analysis:

The COVID-19 pandemic brought faster changes across society, especially when it came to using digital tools. Things like online services, working from home, and learning online became much more common. Because more people were online, data infrastructure had to handle a bigger load. Even though it was hard to get all the materials needed because of supply chain problems, these changes pushed companies to put more money into data centers. At first, building new data centers was slow because of the pandemic. But governments decided that data centers were very important and let the work continue. Companies also started depending more on cloud computing and colocation services. This meant they needed even more new data centers in the long run, keeping the demand high. This shift shows how the pandemic changed how businesses and people use digital resources, making data centers more important than ever. These centers supported not only the increased demand during the pandemic but also the new normal of remote operations and digital interactions that are still with us. As a result, the data center industry saw sustained investment and growth, adapting to meet these technology needs.

Latest Trends and Developments:

The data center construction field is currently seeing some huge changes, mainly due to the increase in liquid cooling systems. These systems are helpful because they provide better cooling in a smaller space, which makes data centers more efficient. AI is also changing how these projects are handled. It's now being used to carefully manage construction schedules and decide how to best use available resources. This ensures that projects are finished on time and without wasting materials or manpower. To improve data security and make tracking easier, blockchain tech is also being added to the data center construction process. This tech makes sure that all data is correct and can be easily checked, reducing the risk of errors or fraud. Sustainability is now a major focus, pushing the creation of data centers that don't produce any carbon emissions. The goal is to make these centers use as much energy as they produce, leading to net-zero energy use. Finally, a lot of older data centers are being updated. These updates allow old centers to be more energy-saving and perform up to current standards. This involves installing new, more efficient equipment and improving the overall design to cut energy use.

Key Players in the Market:

1. Turner Construction Company
2. DPR Construction
3. AECOM
4. Arup Group
5. Holder Construction
6. IBM Corporation
7. Schneider Electric
8. Vertiv Group Corp.
9. Equinix Inc.
10. NTT Global Data Centers

Market News:

• Vertiv's MegaMod CoolChip, launched in mid-2024, is a high-performance prefabricated data center module that integrates direct-to-chip liquid cooling and built-in power protection, enabling up to 50% faster deployment for AI-ready infrastructure.
• In a groundbreaking move in 2025, Schneider Electric and NVIDIA unveiled a reference architecture designed for AI data centers, supporting up to 132 kW per rack with integrated liquid cooling and digital automation that cuts energy usage and accelerates deployment timelines by nearly 30%.