United States Data Center Construction Market Overview
The United States Data Center Construction Market is projected to reach US$ 28.95 billion by 2033, up from US$ 17.01 billion in 2024, reflecting a CAGR of 6.09% between 2025 and 2033. This strong growth trajectory is driven by the accelerating adoption of cloud computing, digital transformation, and the rising demand for advanced, high-capacity, and energy-efficient IT infrastructure.
As the backbone of the digital economy, data centers are evolving from traditional storage facilities into intelligent ecosystems that power artificial intelligence (AI), machine learning (ML), big data analytics, and edge computing. These technologies are reshaping how industries operate and compelling corporations, government agencies, and hyperscale cloud providers to build sophisticated facilities that ensure scalability, performance, and sustainability.
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Market Outlook
The U.S. data center construction market is being propelled by the explosive growth of cloud adoption, IoT networks, and AI-driven workloads, which are fueling massive investments in digital infrastructure. Enterprises across sectors—ranging from finance and healthcare to government and energy—are prioritizing the development of secure, efficient, and modular data centers capable of supporting rapid data processing and seamless digital operations.
Collaboration between construction firms, engineering consultancies, and technology providers is reshaping the market. These partnerships are enabling next-generation facilities designed with smart cooling systems, renewable energy integration, and green building practices to reduce carbon footprints.
The surge in modular data center construction also highlights a shift toward faster, scalable, and cost-efficient deployment models. These modular solutions allow operators to expand capacity on demand, particularly in fast-growing edge locations.
Key Growth Drivers
Increasing Cloud Dependency and Data Consumption
The massive surge in data creation and consumption underpins market expansion. According to CTIA’s 2024 Wireless Industry Survey, U.S. wireless networks transmitted a record 100.1 trillion megabytes of data in 2023, representing an 89% increase since 2021. This exponential rise demonstrates the critical role of data centers in supporting cloud operations, mobile applications, and enterprise workloads.
As organizations migrate to the cloud, they demand scalable, secure, and high-capacity facilities capable of handling growing workloads. Cloud giants such as Amazon Web Services, Google Cloud, and Microsoft Azure continue to expand their infrastructure footprint, driving demand for advanced data center construction across the country.
Growing Industry Investments and Sustainability Initiatives
The U.S. market is witnessing unprecedented investment in sustainable data infrastructure. Developers are integrating renewable energy systems, AI-based cooling technologies, and energy-efficient materials to meet sustainability goals and comply with government mandates.
In March 2025, Related Companies, a major U.S. real estate developer, launched Related Digital, a dedicated platform focused on large-scale data center infrastructure investments across the U.S. and Canada. Such initiatives highlight a strategic shift toward green, energy-efficient facilities capable of meeting the rising environmental standards of both regulators and corporate clients.
AI, IoT, and Technological Advancements
The integration of AI, IoT, and 5G technologies is generating an enormous need for low-latency, high-performance computing environments. These technologies require robust infrastructure capable of real-time analytics and data-intensive workloads.
A notable example is the Stargate project, announced in January 2025—a $100 billion AI infrastructure joint venture between OpenAI, SoftBank, and Oracle, which could expand to $500 billion by the end of the decade. The initiative includes building 10 hyperscale data centers totaling around 500,000 square feet each, beginning in Abilene, Texas, with potential expansion to 20 sites nationwide.
Similarly, Amazon’s $10 billion expansion in North Carolina and DAMAC’s $20 billion U.S. expansion plan illustrate the ongoing wave of large-scale infrastructure investment aimed at supporting the AI economy.
Edge Computing and Decentralization
The growth of edge computing—which processes data closer to end-users—has become a major catalyst for data center construction. To minimize latency and optimize performance, operators are increasingly developing regional and edge data centers. This decentralization supports emerging applications like autonomous vehicles, telemedicine, and industrial automation, all of which require immediate data processing capabilities.
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Challenges Facing the Market
High Capital and Operational Costs
Building and maintaining data centers involves substantial investment. Costs include land acquisition, construction materials, power infrastructure, security systems, and advanced cooling technologies. Operational expenses—covering energy consumption, maintenance, and staffing—further add to the burden.
Smaller firms face challenges competing with hyperscale providers that have greater access to financing. Moreover, rising material and energy prices and supply chain disruptions can delay projects and impact profitability. These factors make cost optimization and partnerships essential for new entrants in the market.
Regulatory and Compliance Challenges
The U.S. market operates under complex regulatory frameworks at both state and federal levels. Developers must comply with energy efficiency mandates, environmental impact assessments, cybersecurity standards, and land-use regulations.
States like California impose strict energy efficiency and emissions standards, while federal agencies oversee data privacy, protection, and security compliance. The resulting need for extensive documentation and approvals can slow project timelines and increase development costs. Balancing rapid expansion with regulatory compliance remains a key challenge for operators.
Regional Insights
California
California remains the largest market for data center construction, anchored by Silicon Valley’s technology ecosystem. The state’s concentration of cloud service providers, hyperscale projects, and sustainability mandates fosters continued growth. Developers are prioritizing renewable energy adoption, innovative cooling, and high-density power systems to align with green policies. However, high land costs, strict regulations, and limited energy capacity pose challenges. Despite these, California continues to lead in eco-friendly, modular, and AI-ready data center projects.
Texas
Texas is emerging as a top data center hub, favored for its affordable energy, tax incentives, and ample land availability. Major cities such as Dallas, Austin, and Houston are hotspots for new hyperscale and colocation projects. Its central U.S. location enhances connectivity, while a pro-business environment attracts tech investments. Challenges include weather risks and grid reliability, but the state’s strong infrastructure and renewable energy integration keep it at the forefront of market expansion.
New York
As a global financial hub, New York’s demand for secure and resilient data infrastructure remains strong. The state’s high concentration of enterprises in finance, insurance, and media drives continued investment. While real estate and energy costs are high, the growing emphasis on sustainable, modular facilities supports ongoing development. New York’s strategic East Coast location and connectivity advantages make it essential for mission-critical operations and disaster recovery centers.
Florida
Florida’s strategic position as a gateway to Latin America and its favorable tax environment are transforming it into a rising data center destination. Cities like Miami and Orlando are seeing a surge in hyperscale and colocation developments. The state’s vulnerability to hurricanes and humidity poses construction and operational challenges, but resilient design innovations—such as hurricane-resistant structures and advanced cooling—are mitigating these risks. Florida’s expanding digital economy ensures its growing contribution to the national market.
Recent Developments
· June 2025 – Sika AG introduced new sustainable construction solutions designed to improve data center cooling efficiency and reduce carbon footprints. The company supports over 1,000 completed projects worldwide and plans to invest CHF 400 billion by 2028 in sustainable data infrastructure.
· June 2025 – Amazon announced a $10 billion expansion of its North Carolina data center campus as part of a $100 billion AI capital initiative, aimed at creating 500 skilled jobs and promoting local STEM education.
· January 2025 – EDGNEX Data Centers by DAMAC revealed a $20 billion U.S. expansion targeting 2,000 MW capacity, with flexibility to double investment depending on market demand.
Market Segmentation
· By Tier Type: Tier 1, Tier 2, Tier 3, Tier 4
· By Infrastructure: IT Infrastructure, PD & Cooling Infrastructure, Miscellaneous Infrastructure
· By Vertical: IT & Telecom, BFSI, Healthcare, Government & Defense, Energy, Others
· By States: California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, and others
Key Companies Profiled
· AECOM
· Whiting-Turner Contracting Company
· Turner Construction Co.
· Jacobs Solutions Inc.
· DPR Construction
· Skanska USA
· Balfour Beatty US
· Hensel Phelps
Conclusion
The United States Data Center Construction Market is entering a transformative decade marked by AI-driven infrastructure expansion, sustainable innovation, and modular growth strategies. While high capital costs and regulatory complexities persist, strategic public-private collaborations, technological advancements, and the push toward carbon-neutral data centers are paving the way for sustained growth.
By 2033, the U.S. is expected to maintain its global leadership in data infrastructure, powering the next wave of AI, 5G, and cloud computing evolution—making data center construction one of the nation’s most critical and fast-growing industries.
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