Data Center Construction Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The data center construction market is expected to grow significantly. By 2024, the market size is expected to reach $ 43.71 billion, and by 2035, the market size is expected to reach $ 100 billion. CAGR of 7.82% from 2025 to 2035. The trend is upward, driven by the increasing demand for data storage and processing. The development of cloud computing, the proliferation of IoT devices, and the rising demand for big data are the main driving forces. As companies become increasingly dependent on digital assets, the need for efficient and scalable data centers is also increasing. The introduction of new technology, such as the adoption of data center design and energy-saving construction, is also a driving force for the market. Amazon, Microsoft and Google are leading the way, investing heavily in the construction of data centers and forming strategic alliances with other companies. The recent investment in green data centers reflects the trend of sustainable development, which not only meets the regulatory requirements, but also meets the needs of the public's green consciousness. The trend of the data center construction market will continue to develop, and the main players in the industry will continue to drive the trend of innovation and strategy.

Regional Market Size

Regional Deep Dive

Data center construction is a fast-growing industry in many countries. The growing demand for cloud services, big data, and the Internet of Things (IoT) is driving the growth of the market. Each region has its own characteristics influenced by technological developments, regulations, and economic conditions. North America leads in innovation and investment, Europe focuses on sustainable development and energy efficiency, and the Asian-Pacific region is growing rapidly as a result of urbanization and digital transformation. The Middle East and Africa are emerging markets, with governments increasingly supportive of the industry, while Latin America is growing with increasing Internet penetration and data consumption.

Europe

• The European Union is promoting the Green Deal to encourage data centres to reduce their carbon footprint. In particular, it has increased investment in energy-efficient technology and the use of green energy.
• Germany and the Netherlands are becoming the places to build data centres because of their favourable regulations and the incentives to use green energy. A notable project is the expansion of the data centres of the company Equinix in Amsterdam, which have as their main goals energy efficiency and the conservation of natural resources.

Asia Pacific

• Asia-Pacific is undergoing rapid urbanization and digital transformation, which is leading to a surge in data center construction, especially in China and India. The Chinese government is investing heavily in the development of digital China.
• The energy demands in the region are high, and the cooling system of liquid cooling and the cooling system of artificial intelligence are used to meet the demand for energy. The companies such as Alibaba and Tencent have built data centers in the new era.

Latin America

• Latin America is experiencing a digital transformation, with countries like Brazil and Mexico leading the way in data center construction. The region is benefiting from increased internet penetration and a growing demand for cloud services.
• Recent investments from global players like Microsoft and Google in local data centers are enhancing the region's infrastructure and providing opportunities for local businesses to leverage cloud technologies.

North America

• North America is dominated by large IT companies such as Amazon, Google and Microsoft, which are building large data centers for cloud services. They are based on the concept of building blocks that are scalable and shorten the construction time.
• Data center operators are also responding to new energy regulations by adopting more sustainable practices, such as using renewable energy sources. The green building movement is an example of this trend. The U.S. Green Building Council has launched a program to certify data centers as LEEDs.

Middle East And Africa

• The Middle East is a region where data centers are growing rapidly, driven by the ambitious Vision 2030 of the Kingdom of Saudi Arabia, which aims to diversify the economy and strengthen digital infrastructure. The development of projects such as the data center at King Abdulaziz City for Science and Technology reflects this need.
• In Africa, the rise of cloud computing and increased internet penetration are driving demand for data centers. Companies like Teraco are expanding their facilities to support the growing digital economy, focusing on interconnectivity and reliability.

Did You Know?

“Did you know that data centers consume about 1-2% of the world's total energy supply, and this figure is expected to rise as digital services continue to expand?” — International Energy Agency (IEA)

Segmental Market Size

The data center construction market is currently experiencing a boom, driven by the increasing demand for cloud services and data storage. This trend is driven by the digital transformation of various industries and the need for better data processing capabilities. Also, the regulations on energy efficiency and the environment are influencing the construction of data centers. The data center market is currently in the stage of large-scale deployment, with Amazon, Microsoft, and others building the most modern data centers, especially in the Northern Virginia and Singapore regions. The main applications are colocation services, cloud services, and enterprise data management. The data center is a place where companies store their data and where they can use the most advanced IT equipment. Also, the green data center trend and the development of artificial intelligence and machine learning are boosting the market. Modular data center construction is a trend that is reshaping the data center building process and bringing higher efficiency and shorter time to market.

Future Outlook

In the data center construction market, the global market size is expected to grow from $43,711,000 in 2024 to $99,200,000 in 2035, with a CAGR of 7.82%. The main growth factors are the emergence of cloud computing, big data, and the Internet of Things (IoT), which requires the need for advanced data storage and data processing capabilities. Data centers will be built more and more in the future, and more and more digital enterprises will move to digital platforms, which will drive the data center construction market. Also, the application of artificial intelligence (AI) to data management and energy conservation, and the implementation of green building concepts, will further drive the market. Governments are also encouraging the development of green buildings and the use of renewable energy sources, which will also stimulate the investment in green data centers. The emergence of edge computing and the trend of using small data centers will also help to meet the diverse needs of enterprises, and ultimately enhance the resilience and adaptability of the market. The data center construction industry is expected to see a more dynamic and strategic alliance environment in the future, and the market has room for growth.