Data Center Construction Market Expansion Driven by Digital Transformation Projects

The global data center construction market size was estimated at USD 261.31 billion in 2025 and is projected to reach USD 662.71 billion by 2033, growing at a CAGR of 12.7% from 2026 to 2033, driven by the rapid migration of enterprises to cloud-based architectures. Organizations across industries are increasingly adopting hybrid and multi-cloud environments to enhance scalability, resilience, and operational efficiency.

Key Market Trends & Insights

• North America dominated the global data center construction market with a revenue share of 40.9% in 2025.
• The U.S. data center construction sector is expected to experience significant growth over the forecast period.
• By infrastructure type, IT infrastructure led the market, accounting for 81.2% of total revenue in 2025.
• By tier, the tier 3 segment held the largest market share in 2025.
• By end-use, the IT and telecom segment is expected to grow at the fastest CAGR from 2026 to 2033.

Market Size & Forecast

• 2025 Market Size: USD 261.31 Billion
• 2033 Projected Market Size: USD 662.71 Billion
• CAGR (2026–2033): 12.7%
• North America: Largest market in 2025

This growth is accompanied by a need for hyperscale and edge data centers capable of handling high workloads, real-time analytics, and low-latency applications. The surge in data from streaming platforms, social media, connected devices, and enterprise applications is increasing demand for expanded data center capacity. The rise of artificial intelligence, machine learning, and generative AI models is also driving compute-intensive workloads, necessitating high-performance computing infrastructure, specialized chipsets, and enhanced power and cooling systems, resulting in both new construction and retrofitting of existing facilities.

The global rollout of 5G networks is accelerating the deployment of edge data centers closer to end users. Industries such as autonomous vehicles, smart cities, telemedicine, and industrial automation require ultra-low latency and real-time processing that centralized data centers cannot efficiently provide. This trend toward distributed computing is promoting investments in smaller, modular, and geographically dispersed facilities.

Major cloud service providers such as Amazon Web Services, Microsoft Azure, Google Cloud, and Meta are expanding their global data center footprints through large-scale campuses. Colocation providers are simultaneously investing in new facilities to serve enterprises preferring outsourced infrastructure. For instance, in June 2025, Amazon announced plans to invest approximately USD 13 billion (AUD 20 billion) from 2025 to 2029 to expand, operate, and maintain data center infrastructure in Australia, supporting cloud computing and AI growth while investing in renewable energy projects like solar farms to power these facilities.

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Key Data Center Construction Company Insights

Leading companies in the data center construction market include Acer Inc., Cisco Systems Inc., Dell Inc., IPXON Networks, Fujitsu, and HostDime Global Corp., focusing on new product development, partnerships, collaborations, and strategic agreements. Examples include:

• In December 2025, ABB agreed to acquire UK-based IPEC, integrating IPEC’s AI-driven monitoring solutions for critical electrical infrastructure to strengthen ABB’s digital power management offerings.
• In April 2025, Fujitsu collaborated with Supermicro and Nidec to develop energy-efficient cooling technologies, combining liquid-cooling software, high-performance GPU server platforms, and advanced liquid-cooling systems to lower power usage effectiveness.
• In February 2025, Cisco expanded its collaboration with NVIDIA to deliver integrated AI infrastructure solutions, combining networking and AI computing platforms for high-performance, low-latency, energy-efficient connectivity.

Key Data Center Construction Companies:

• ABB
• Acer Inc.
• Ascenty
• Cisco Systems, Inc.
• Dell Inc.
• Equinix, Inc.
• Fujitsu
• Gensler
• Hewlett Packard Enterprise Development LP
• Hitachi, Ltd.
• HostDime Global Corp.
• Huawei Technologies Co., Ltd.
• IBM Corporation
• INSPUR Co., Ltd.
• IPXON Networks
• KIO
• Lenovo
• Oracle
• Schneider Electric
• Vertiv Group Corp.

In conclusion, the global data center construction market is set for robust growth over the next decade, fueled by cloud adoption, AI, and 5G-driven edge deployments. Key market trends highlight North America’s dominance, tier 3 facilities’ prevalence, and IT & telecom as a rapidly growing end-use segment. Market size forecasts show a strong CAGR of 12.7% from 2026 to 2033, with investments from hyperscalers and colocation providers driving construction and modernization activities. The expansion of AI, HPC, and low-latency infrastructure, along with sustainability initiatives, positions the market for continued strategic growth and innovation globally.