U.S. Data Center Construction Market Expected to Surge, Driven by AI, Cloud, and Edge Computing | Persistence Market Research

Overview of the Market

The U.S. data center construction market is experiencing rapid expansion, with its valuation projected to grow from US$ 67.0 billion in 2025 to US$ 133.4 billion by 2032, reflecting a strong CAGR of 10.4% during the forecast period. This robust growth is primarily driven by the surging adoption of AI workloads, cloud computing, and edge computing across industries. As enterprises demand more processing power, storage capacity, and real-time data delivery, the market is witnessing a surge in innovative construction projects across the country.

In 2025, IT infrastructure is expected to dominate the market with an estimated 82.3% share, underpinned by strategic partnerships between IT hardware vendors and data center builders. Geographically, the Western U.S. is emerging as a leading growth region due to heavy investments in edge data centers for autonomous vehicle infrastructure and renewable-powered data hubs. This shift reflects a decentralization trend, moving beyond traditional hubs like Silicon Valley and Northern Virginia to strategically located facilities across the nation.

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Key Highlights from the Report

• U.S. federal data privacy regulations are accelerating the need for localized data center construction.
• Increasing adoption of underwater and underground data centers for enhanced thermal efficiency.
• IT infrastructure segment is projected to account for 82.3% market share in 2025.
• IT and telecom sector leads in application share due to the growing demand for dense networking setups.
• Significant investments in edge data centers are fueling developments in the Western U.S.
• The market's CAGR from 2025 to 2032 is projected at 10.4%, doubling its value within seven years.

Market Segmentation

The U.S. data center construction market can be segmented by infrastructure type, end-user industry, and data center size. By infrastructure, IT infrastructure dominates the market, including servers, storage systems, and networking equipment. Mechanical infrastructure, such as cooling systems, and electrical infrastructure, including UPS systems and generators, also play crucial roles. Growing AI and machine learning applications are boosting demand for high-density rack solutions and liquid-cooling systems.

In terms of end-user industry, the IT and telecom sector holds the largest share, driven by cloud service providers, telecom operators, and hyperscalers expanding capacity. Other industries such as BFSI, healthcare, manufacturing, and government are investing in private and hybrid data centers to meet compliance and performance requirements. Colocation providers are increasingly targeting small and medium enterprises that need scalable infrastructure without high upfront capital costs.

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Regional Insights

The Western U.S. is set to be a growth hotspot due to its strategic role in supporting autonomous vehicle infrastructure and AI-driven services. Abundant renewable energy sources and favorable regulatory policies make the region attractive for sustainable data center projects.
Meanwhile, the Midwestern U.S. is emerging as a hub for large-scale AI campuses and hyperscale facilities, leveraging affordable real estate and proximity to major population centers. These regions are increasingly attractive for disaster recovery and redundancy planning.

Market Drivers

One of the primary drivers of market growth is the rising demand for AI and edge computing infrastructure. Enterprises require faster data processing and reduced latency, which is pushing investment into distributed, smaller-scale facilities closer to end-users. Additionally, federal and state-level data privacy laws are compelling companies to keep data within national borders, spurring localized construction.

The shift toward sustainable and energy-efficient data centers is also contributing to the surge, with innovations like liquid cooling, renewable energy integration, and underground facilities becoming mainstream.

Market Restraints

Despite strong growth prospects, the U.S. data center construction market faces challenges such as rising construction costs due to inflation, supply chain constraints, and skilled labor shortages. The complexity of integrating advanced cooling systems and high-performance IT infrastructure also increases project timelines and costs.

Moreover, energy consumption concerns and regulatory hurdles related to land use, water supply, and environmental impact may slow down project approvals in certain regions.

Market Opportunities

The industry is ripe with opportunities, particularly in AI-optimized data centers, modular and prefabricated construction, and edge computing hubs. Underwater and underground designs are attracting interest for their natural cooling advantages and enhanced security.

Additionally, partnerships between energy companies and hyperscale providers present new opportunities for building carbon-neutral facilities, aligning with corporate sustainability goals and ESG commitments.

Reasons to Buy the Report

✔ Comprehensive analysis of market trends, growth drivers, and restraints impacting the U.S. data center construction industry.
✔ Detailed segmentation by infrastructure type, end-user, and regional trends for strategic planning.
✔ Insights into emerging technologies like liquid cooling, modular designs, and AI-optimized facilities.
✔ Coverage of regulatory frameworks and sustainability initiatives shaping the market.
✔ Identification of investment opportunities and potential growth regions for new entrants and existing players.

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Frequently Asked Questions (FAQs)

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Company Insights

Key Players Operating n the Market:

• Turner Construction Company
• DPR Construction
• AECOM
• Holder Construction
• Fluor Corporation
• Hensel Phelps
• Skanska USA
• JE Dunn Construction
• Mortenson Construction
• Structure Tone

Recent Developments:

1. In 2024, DPR Construction announced the completion of a 500,000 sq. ft. hyperscale data center in the Midwest with advanced liquid-cooling systems for AI workloads.
2. Turner Construction partnered with a major renewable energy provider to develop a net-zero carbon data center campus in the Western U.S., set for completion in 2026.

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