Data Center Construction Market in United States Trends and Forecast
The future of the data center construction market in United States looks promising with opportunities in the BFSI, IT and telecommunications, government and defense, and healthcare markets. The data center construction market is expected to reach an estimated $72.3 billion by 2031 with a CAGR of 5.8% from 2025 to 2031. The data center construction market in United States is also forecasted to witness strong growth over the forecast period. The major drivers for this market are rising data usage and the increasing need for cloud computing among enterprises, growing dependence on e-commerce systems, which call for powerful data processing and storage capabilities, along the growing utilization of Internet of Things (IoT) devices.
• Lucintel forecasts that, within the data center category, large-scale data centers will remain a larger segment over the forecast period due to their ability to handle multiple clients and a variety of computing requirements.
• Within the end use category, IT and telecommunications will remain the largest segment due to the exponential rise in data consumption, increasing cloud adoption, and the expansion of digital infrastructure.
Emerging Trends in the Data Center Construction Market in United States
The Data Center Construction market in the United States is increasingly active due to a rapidly accelerating demand for digital services, cloud computing, and data storage. Businesses across different industries rely heavily on data, and there is a requirement for infrastructure that can handle massive amounts of information while providing low-latency services. As a result, emerging trends are reshaping the way data centers are designed, built, and operated, highlighting opportunities for innovation and improved efficiency.
• Focus on Sustainability and Green Initiatives: The push for sustainability in the Data Center Construction market in the United States is driving significant changes in design and operation. These developments include the use of renewable sources, such as solar and wind, as well as energy-efficient cooling systems. It allows data centers to reduce their carbon footprint while staying aligned with various regulatory requirements and meeting consumer demands for eco-friendly business practices. Given the increasing importance placed on sustainability, the demand for energy-efficient solutions will promote long-term growth in eco-friendly construction.
• Hyperscale Data Centers Increasing Demand: Hyperscale data centers are experiencing growth in the US, as they are designed to scale rapidly to accommodate massive processing and storage capacity. These are large centers, essential for very large cloud service providers, giant IT companies, and other businesses requiring vast amounts of computing capacity. The increased demand for hyperscale centers is related to the growing use of cloud services and AI applications. Investors are building more efficient infrastructures to handle the increasing demands of data-intensive industries, thus continuously growing the sector.
• Growing Edge Data Centers: Smaller facilities placed closer to the user, or edge data centers, have gained momentum in the United States as businesses require low-latency services for applications such as IoT and real-time analytics. These data centers reduce the distance that data has to travel, thereby increasing speed and efficiency. Edge computing is crucial for healthcare, autonomous vehicles, and smart cities. The development of edge data centers presents opportunities for construction companies to build decentralized infrastructures supporting localized data processing needs.
• AI and Automation in Construction Integration: The integration of AI and automation technologies in the construction of data centers is changing the sector. With advanced robotics, machine learning, and automated systems in design, construction, and operations, developers achieve faster, more accurate, and cost-effective results. These technologies streamline the construction process, reduce human error, and optimize resource use. As AI and automation continue to advance, they will drive further innovation in data center design and development, leading to more efficiency and lower costs in the long run.
• Data Center Modernization and Retrofit: In the United States, many data centers are undergoing modernization or retrofit processes to meet current demand and technological advancements. Rather than building entirely new facilities, businesses are investing in upgrading older centers to improve efficiency, security, and scalability. This trend is cost-effective for companies looking to meet modern demands while minimizing capital expenditures. The retrofit market presents a significant opportunity for construction companies to support ongoing improvements and expansions, contributing to the long-term sustainability of the data center sector.
Trends in the Data Center Construction market in the United States include a demand for cloud computing, sustainability, and state-of-the-art technologies such as AI and automation. Hyperscale and edge data centers, along with a push for modernization, are driving the market forward, evolving to cater to the increasing demand for digital infrastructure. These trends are changing the landscape of the industry, offering opportunities for investment in energy-efficient, scalable, and advanced data center solutions for construction companies.
Recent Developments in the Data Center Construction Market in United States
The Data Center Construction market in the United States is rapidly developing due to technological advancements, economic growth, and increasing digital demands. New data centers are being built, and existing ones are being modernized to help businesses scale and meet consumer needs. As data storage and processing requirements grow, significant developments are underway to improve infrastructure and meet the demand for low-latency, high-performance computing.
• Lightning Expansion of Cloud Data Centers: Cloud computing services are expanding rapidly in the United States, driving a huge increase in cloud data centersÄX%$%X construction. This growth is fueled by the deployment of SaaS, PaaS, and IaaS solutions in the market, which require massive infrastructures. Cloud providers are investing heavily in building data centers to support the storage and processing of vast amounts of data. This development is boosting the data center construction market, as more facilities with greater capacity and advanced technologies are needed to handle cloud services.
• Investment in 5G Infrastructure: As 5G networks are rolled out in the United States, data centers are being built to accommodate the large amount of data and low-latency requirements for 5G applications. These centers are designed with the capacity to handle increased network traffic, enabling fast communication for applications such as autonomous vehicles, remote surgery, and smart cities. The development of 5G infrastructure is driving the need for data centers capable of processing real-time data, which, in turn, is propelling growth in the data center construction sector.
• Data Security and Compliance: With the growing volume of sensitive data, data security and compliance are more crucial than ever. Data center construction is increasingly focused on meeting regulatory standards such as GDPR and CCPA, while ensuring that infrastructure is safe and secure. Data centers are being built with advanced security measures, such as biometric access, encryption, and monitoring. As the importance of secure, compliant data centers grows, these measures are becoming standard in the industry.
• Renewable Energy-Powered Data Centers: Sustainability is becoming an important factor in the construction of data centers, as businesses strive to reduce their carbon footprint and meet environmental goals. Increasingly, data centers are being powered by clean energy sources, such as solar and wind power. These efforts reduce environmental impact and save costs in the long run, changing the landscape of the industry by increasing demand for renewable energy solutions in data center design.
• Availability of Land for Data Centers: As demand for data centers increases, so does the need for available land in the United States, making real estate one of the biggest challenges. Developers are looking for large plots of land in strategic locations that provide access to reliable power sources and low-latency connectivity. As a result, data center clusters have emerged in suburban and rural areas, where land is cheaper but infrastructure remains strong. Real estate availability is shaping the development of the data center construction market, influencing site selection and facility expansion.
The latest trends in the US Data Center Construction market, including the growing demand for infrastructure supporting cloud services, 5G networks, data security, and sustainability, are driving the industry to invest in larger, more efficient, and eco-friendly facilities. Technological improvements have shaped the digital landscape, and the data center sector will continue to evolve. As a result, innovation and new opportunities for construction companies and developers will emerge in this sector.
Strategic Growth Opportunities for Data Center Construction Market in United States
The US Data Center Construction market is rapidly growing as more companies depend on data storage and processing for innovation and competitiveness. Several key applications are driving growth in the market, with the demand for cloud services, AI technologies, and sustainability initiatives remaining high. The construction industry is responding to these changes by adopting new technologies, improving facility efficiency, and expanding to meet the needs of a digital economy.
• Cloud Computing and SaaS Applications: Cloud computing and software-as-a-service (SaaS) solutions are among the most prominent drivers for data center construction in the United States. With the increasing shift of businesses to the cloud, the demand for scalable, secure, and high-performance data centers is growing. This has led to the construction of large hyperscale facilities to support massive volumes of data. Cloud service providers are expanding infrastructure to meet these demands, offering significant growth opportunities for construction companies to build high-end data centers.
• Edge Computing and IoT Applications: IoT is also growing rapidly. The need to process data without latency is driving the demand for edge computing. Edge Data Centers will be placed close to end-users so that applications such as autonomous vehicles, healthcare devices, and smart cities are less impacted by latency and can operate with better performance. These data centers process data locally, offloading traffic from larger cloud data centers and supporting real-time analytics. Construction companies should focus on building smaller, distributed facilities to support such applications. This opens strategic growth opportunities for them in urban and regional markets.
• AI and Machine Learning Infrastructure: Artificial intelligence (AI) and machine learning (ML) are transforming industries from healthcare to finance. These technologies require high computational power and data processing capabilities, which are supported by advanced data center infrastructure. To accommodate these needs, construction companies are focusing on building high-performance, energy-efficient data centers with specialized equipment for AI workloads. As the adoption of AI and ML grows, this will provide developers with opportunities to build facilities capable of processing growing demands and offering space for growth for these transformational technologies.
• Sustainability and Green Data Center Initiatives: The Data Center Construction market in the United States is growing, and sustainability has emerged as an important theme for the industry. With increasing pressure from both regulators and consumers, businesses are prioritizing energy efficiency, water conservation, and carbon neutrality in their data centers. The trend toward green data centers has led to the construction of facilities powered by renewable energy sources such as wind and solar and the implementation of innovative cooling technologies. This growth opportunity attracts construction firms to build data centers that adhere to the highest sustainability standards and reduce environmental impacts.
• 5G Infrastructure: Expansion in the 5G network is demanding new data centers to tackle the increased inflow of data traffic, which exceeds a zettabyte. As 5G technology promotes faster internet speeds, real-time data transfer, and an increasing number of connected devices, data centers must be designed to meet these requirements. Edge data centers and localized facilities that process data closer to end-users are in growing demand due to the rollout of 5G infrastructure. With this growth, construction companies are capitalizing on the opportunity to build advanced, 5G-ready data centers that support next-generation applications and services.
Key application drivers in the United States for strategic growth opportunities in the Data Center Construction market include cloud computing, edge computing, AI infrastructure, sustainability initiatives, and 5G network expansion. This is due to the growing need for efficient, scalable, and sustainable data centers. As businesses continue to rely on digital technologies, the construction market will see increased demand for state-of-the-art facilities that can support next-generation applications, ensuring continued growth and innovation in the industry.
Data Center Construction Market in United States Driver and Challenges
The Data Center Construction market in the United States is influenced by various drivers and challenges that shape the development of new infrastructure. Technological advancements, regulatory factors, economic conditions, and sustainability initiatives are among the key drivers of growth. However, challenges such as available land, the complex requirements of constructing energy-efficient structures, and the high demand for highly skilled labor remain. Understanding these drivers and challenges helps construction companies navigate the winds of change.
The factors responsible for driving the Data Center Construction market in United States include:
• Technological Advances and High-Performance Computing Needs: Artificial intelligence, machine learning, and big data analytics technologies require infrastructure support in terms of high-performance computing. These technologies must also house powerful processors and large-scale storage systems. The industry is developing rapidly, as AI and ML are becoming mainstream tools for industries to make crucial decisions and execute various automation-related processes. The increasing demand for sophisticated and energy-efficient data center design will stimulate construction companies to adopt new technologies and innovative designs.
• Data privacy regulations: including GDPR, CCPA, and HIPAA, are affecting the design and operations of data centers. Construction companies need to ensure that new facilities meet these requirements to avoid lawsuits and protect confidential information. Data center providers are compelled to invest more in secure features and comply with stringent data storage requirements due to the rising volumes of personal data being processed. The growing need for secure, purpose-built data centers is shifting regulatory compliance demands and privacy requirements.
• Increasing Demand in Cloud Services and SaaS: This is primarily fueled by the growing services in cloud computing and Software-as-a-Service (SaaS), where expanding or even constructing a data center may be inevitable when businesses switch to operating in the cloud. Large cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are driving large volumes of data into hyperscale facilities. This trend is increasingly being adopted as companies continue to rely on cloud-based solutions.
Challenges in the Data Center Construction market in United States are:
• Increasing Energy Prices and the Quest for Efficient Solutions: Data centers consume significant amounts of power. Rising energy costs and growing environmental concerns are causing businesses to construct energy-efficient and sustainable data centers. Renewable energy sources such as solar and wind power, along with advanced cooling technologies, help reduce operational costs while enhancing environmental sustainability. Construction companies are investing in green technologies that meet these demands, enabling data centers to operate more efficiently while minimizing their environmental impact.
• Supply Chain Disruptions and Labor Shortages: The construction industry is facing significant supply chain disruptions and labor shortages. The COVID-19 pandemic, along with other global supply chain issues, has caused delays in the delivery of critical materials and components required to build data centers. Additionally, the demand for skilled labor in the construction and technology industries is outstripping supply, making it difficult for construction companies to find enough qualified workers. This leads to potential delays and added costs in constructing data centers.
Some of the primary drivers and challenges that impact the Data Center Construction market in the United States are technological innovation, regulatory compliance, increasing energy costs, high demand for cloud services, and supply chain disruptions. Some challenges act as growth factors, while others highlight the need for innovation and strategy. The market is evolving rapidly, and companies that can adapt to these changes will be better positioned to capitalize on future growth opportunities.
List of Data Center Construction Market in United States Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, data center construction companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the data center construction companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Data Center Construction Market in United States by Segment
The study includes a forecast for the data center construction market in United States by size of data center and end use.
Data Center Construction Market in United States by Size of Data Center [Analysis by Value from 2019 to 2031]:
• Small and Medium-scale Data Center
• Large-scale Data Center
Data Center Construction Market in United States by End Use [Analysis by Value from 2019 to 2031]:
• BFSI
• IT and Telecommunications
• Government and Defense
• Healthcare
• Others
Features of the Data Center Construction Market in United States
Market Size Estimates: Data center construction in United States market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Data center construction in United States market size by size of data center and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different size of data centers and end uses for the data center construction in United States.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the data center construction in United States.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the data center construction market in United States?
Answer: The major drivers for this market are rising data usage and need for cloud computing among enterprises, growing dependence on e-commerce systems, which calls for powerful data processing and storing capacities, along with increasing utilization of the internet of things (IoT) devices.
Q2. What are the major segments for data center construction market in United States?
Answer: The future of the data center construction market in United States looks promising with opportunities in the BFSI, IT and telecommunications, government and defense, and healthcare markets.
Q3. Which data center construction market segment in United States will be the largest in future?
Answer: Lucintel forecasts that large-scale data center will remain the larger segment over the forecast period because they are designed to handle several clients and a variety of computing requirements.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the data center construction market in United States by size of data center (small and medium-scale data center and large-scale data center) and end use (BFSI, IT and Telecommunications, government and defense, healthcare, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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