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Global Data Center Construction Market Projected to Grow at 6.6% CAGR, Reaching $356.48 Billion by 2029

09-17-2025 08:11 AM CET | Industry, Real Estate & Construction

Press release from: The Business Research Company

Data Center Construction Market

Data Center Construction Market

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What Will the Data Center Construction Industry Market Size Be by 2025?
The size of the market for data center construction has shown substantial growth in the past few years. Predictions point to an increase from $260.49 billion in 2024 to $276.26 billion in 2025, with a compound annual growth rate (CAGR) of 6.1%. This growth during the historical period has been driven predominantly by an increased need for data storage and processing, higher investments in digital infrastructure, globalization, and the growing demand for colocation data centers.

What's the Long-Term Growth Forecast for the Data Center Construction Market Size Through 2029?
In the upcoming years, the size of the data center construction market is predicted to experience significant growth, reaching $356.48 billion in 2029 with a compound annual growth rate (CAGR) of 6.6%. This growth during the forecast period can be credited to factors like the expansion of the digital economy, worldwide data center growth, transition to cloud computing, rising need for edge data centers, and the rollout of 5g. The prediction also encompasses key trends for the period, including sustainability and green designs, modular data centers, security and compliance, and data center-as-a-service.

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What Are the Key Growth Drivers Fueling the Data Center Construction Market Expansion?
The anticipated growth of the data center construction market is being spurred by the escalating data usage demands in cloud computing. Data usage pertains to the data volume that's uploaded or downloaded via a device, driving the data center building industry to create additional data center capacities. For example, a November 2022 law technology survey by the American Bar Association, an organization comprising US lawyers and law students, revealed a remarkable rise in overall cloud data usage from 60% in 2021 to 70% in 2022. Furthermore, the report recorded a leap in solo cloud users from 52% to 84% within a year. Consequently, the rising data usage in cloud computing is accelerating the data center construction market's expansion.

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What Are the Key Trends Driving Data Center Construction Market Growth?
Dominant entities in the data center construction arena are focusing on the technological progress of their products by introducing innovative concepts such as Universal Data Hall Design (UDHD), with the goal of expanding their market footprint. UDHD is a uniquely designed data center that incorporates standard colocation elements with an emphasis on versatility and expansibility. Particularly, UDHD is characterized by its slab floor and peripheral cooling, making it ideal for deploying broad, full-hall, high-performance computing (HPC) applications. As an example, in August 2023, DataBank Holdings Ltd., a company based in the United States that offers information management services, unveiled their innovative high-density data center construction program - Universal Data Hall Design (UDHD), tailored specifically for high-performance computing (HPC). UDHD represents a cornerstone for HPC by offering businesses the much-needed adaptability to manage any deployment that corresponds to their workload requirements.

How Is the Data Center Construction Market Segmented?
The data center construction market covered in this report is segmented -

1) By Data Center Type: Small-Scale Data Centers, Medium-Scale Data Centers, Large-Scale Data Centers
2) By Infrastructure: Electrical Infrastructure, Networking Infrastructure, Other Infrastructures
3) By Power Distribution And Cooling Infrastructure: Power Distribution, Cooling
4) By End-Use: Banking, Financial Services and Insurance (BFSI), Energy, Government, Healthcare, Manufacturing, IT And Telecom, Others End-Uses

Subsegments:
1) By Small-Scale Data Centers: Edge Data Centers, Micro Data Centers
2) By Medium-Scale Data Centers: Colocation Data Centers, Hybrid Data Centers
3) By Large-Scale Data Centers: Enterprise Data Centers, Hyperscale Data Centers

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Which Companies Are Leading the Charge in Data Center Construction Market Innovation?
Major companies operating in the data center construction market are Google LLC, Amazon Web Services Inc., Microsoft Azure, The International Business Machines Corporation, Schneider Electric SE, Meta Platforms Inc., NTT Ltd., Turner Construction Co, STO Building Group Inc., Equinix Inc., DPR Construction Inc., Iron Mountain Inc., Digital Realty Trust Inc., Stantec Inc., SAS Institute Inc., Zayo Group Holdings Inc., Gensler, CyrusOne LLC, Hensel Phelps Construction Co., Cyxtera Technologies LLC, Fortis Construction Inc., QTS Realty Trust Inc., HITT Contracting Inc., TierPoint LLC, Sabey Data Center Properties LLC, Flexential Corp., Holder Construction Group LLC, Cologix Inc., Alfa Tech Consulting Engineers Inc., ipSpace.net AG.

Which Regions Are Leading the Global Data Center Construction Market in Revenue?
North America was the largest region in the data center construction market in 2024. The regions covered in data center construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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