The data center construction market is growing at a CAGR of 7.51% due to the rising AI workloads, cloud computing expansion, and increasing investments in hyperscale and colocation infrastructure, with strong demand across North America and rapid digital infrastructure development in the Asia-Pacific region.
Hyderabad, India, March 05, 2026 (GLOBE NEWSWIRE) — According to a new report published by Mordor Intelligence, the data center construction market size was valued at USD 281.34 billion in 2025 and is projected to grow from USD 300.38 billion in 2026 to USD 431.39 billion by 2031, registering a CAGR of 7.51% during the forecast period (2026–2031). The report highlights how the increasing demand for digital infrastructure, hyperscale cloud facilities, and AI-driven computing environments is accelerating investments in data center development worldwide.
The data center construction market growth is being fueled by rapid digital transformation across industries, increasing enterprise cloud adoption, and expanding colocation infrastructure. As organizations continue migrating workloads to cloud platforms and deploying high-performance computing systems, the data center construction industry is witnessing significant expansion in both developed and emerging economies.
Key Trends Shaping the Data Center Construction Market
Powered Land Developments Accelerating Data Center Projects
Developers are increasingly preparing large sites with essential infrastructure such as power connections, fiber networks, and regulatory approvals before tenants commit to construction. This “powered land” approach helps companies start building data centers much faster by removing long approval and utility setup timelines. As demand for digital infrastructure grows, sites that are ready for immediate development are becoming highly attractive to cloud providers and hyperscale operators. However, successful projects still depend on the availability of reliable connectivity and utility support, as power readiness alone may not be enough to secure tenant interest.
Rising AI and Cloud Workloads Reshaping Data Center Infrastructure
The rapid expansion of cloud services, artificial intelligence applications, and large-scale data analytics is transforming the way data centers are designed and built. Modern computing environments now require significantly higher power density and advanced cooling systems to support intensive workloads. Technology companies are investing heavily in large hyperscale campuses that provide greater operational flexibility and capacity to handle unpredictable computing demand. At the same time, the industry faces a shortage of specialized technicians capable of deploying next-generation cooling and power systems. As a result, developers who collaborate early with experienced infrastructure and cooling partners often gain a competitive advantage in delivering projects faster within the evolving data center construction market.
“Our analysis indicates that sustained investment in hyperscale campuses and colocation facilities continues to shape global data center construction activity, with project pipelines expanding as digital infrastructure demand rises,” says Ashish Gautam, Senior Research Manager at Mordor Intelligence. “We apply a consistent, data-validated research framework and cross-check industry inputs, giving decision-makers a dependable view of market direction and capital planning.”
Table of Contents for Data Center Construction Industry Report
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET LANDSCAPE
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Growing Cloud Applications, AI and Big Data Workloads
- 4.2.2 Accelerating Adoption of Hyperscale Facilities
- 4.2.3 Rising Edge-Computing Build-Outs Near Population Hubs
- 4.2.4 Renewable-Energy Mandates Shaping Facility Design
- 4.2.5 Deployment of On-Site Small Modular Reactors (SMRs) to Bypass Grid Constraints
- 4.2.6 and more
- 4.3 Market Restraints
- 4.3.1 Escalating Real-Estate, Installation and Maintenance Cost
- 4.3.2 Stricter Energy-Consumption and Carbon-Compliance Limits
- 4.3.3 Shortage of Skilled Labor for Advanced Liquid Cooling
- 4.3.4 Utility “Take-or-Pay” Deposits Locking Up Capital and Deterring Mid-Tier Developers
- 4.4 Industry Supply-Chain Analysis
- 4.5 Regulatory Landscape
- 4.6 Technological Outlook
- 4.7 Porter’s Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Key Data Center Statistics
- 4.8.1 Exhaustive Data Center Operators on Regional Level (in MW)
- 4.8.2 List of Major Upcoming Data Center Projects Across Various Regions(2025-2030)
- 4.8.3 CAPEX and OPEX For Data Center Construction
- 4.8.4 Data Center Power Capacity Absorption In MW, Regions, 2023 and 2024
- 4.9 Artificial Intelligence (AI) Inclusion in Data Center Construction Across Various Regions
- 4.10 Regulatory and Compliance Framework
- 4.11 Impact of Macroeconomic Factors on the Market
Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/data-center-construction-market?utm_source=globenewswire
5. MARKET SIZE AND GROWTH FORECASTS (VALUE)
- 5.1 By Tier Type
- 5.1.1 Tier 1 and 2
- 5.1.2 Tier 3
- 5.1.3 Tier 4
- 5.2 By Data Center Size
- 5.2.1 Small
- 5.2.2 Medium
- 5.2.3 Large
- 5.2.4 Hyperscale
- 5.3 By Data Center Type
- 5.3.1 Colocation Data Center
- 5.3.2 Hyperscalers/Cloud Service Provider (CSPs)
- 5.3.3 Enterprise and Edge Data Center
- 5.4 By Infrastructure
- 5.4.1 Electrical Infrastructure
- 5.4.1.1 Power Distribution Solution
- 5.4.1.2 Power Backup Solutions
- 5.4.2 Mechanical Infrastructure
- 5.4.2.1 Cooling Systems
- 5.4.2.2 and more
- 5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 Gulf Cooperation Countries
- 5.5.5.1.2 Turkey
- 5.5.5.1.3 Israel
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Egypt
- 5.5.5.2.3 Nigeria
- 5.5.5.2.4 Rest of Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Data Center Infrastructure Investment Based on Megawatt (MW) Capacity, 2024 vs 2030
- 6.5 Data Center Construction Landscape (Key Vendors Listings)
- 6.6 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, Recent Developments)
- 6.6.1 AECOM
- 6.6.2 Turner Construction Co.
- 6.6.3 DPR Construction
- 6.6.4 Jacobs Solutions Inc.
- 6.6.5 Skanska AB
- 6.6.6 Balfour Beatty plc
- 6.6.7 Whiting-Turner Contracting Co.
- 6.6.8 Hensel Phelps
- 6.6.9 Fortis Construction Inc.
- 6.6.10 Goodman Group
- 6.6.11 and more
- 6.7 List of Data Center Construction Companies
7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
- 7.1 White-Space and Unmet-Need Assessment
For details on major players in the data center construction market, visit – https://www.mordorintelligence.com/industry-reports/data-center-construction-market/companies?utm_source=globenewswire
Regional Expansion in the Data Center Construction Industry
North America continues to be a major hub for data center development as global technology companies invest heavily in large-scale digital infrastructure. Strong cloud adoption, the presence of hyperscale providers, and access to advanced connectivity networks are supporting new facility construction across the region. At the same time, sustainability regulations and energy efficiency standards are increasingly influencing how new data centers are designed and operated.
Asia-Pacific is also witnessing rapid expansion as digital services, e-commerce platforms, and cloud adoption accelerate across emerging economies. Governments and international technology firms are investing in localized data infrastructure to meet data sovereignty requirements and growing internet usage. In several markets across the region, space constraints and rising demand are encouraging the adoption of high-density computing environments and advanced cooling technologies.
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