The United States Data Center Construction Market is expected to reach US$ 28.95 billion by 2033 from US$ 17.01 billion in 2024, with a CAGR of 6.09% from 2025 to 2033. The market for building data centers is expected to grow rapidly due to factors such cloud computing, digital transformation, and rising need for sophisticated facilities that enable high-capacity, scalable, and energy-efficient IT infrastructure.
Many important drivers are driving the market, chief among them the growing demand for digital infrastructure across industries. Trends like machine learning (ML), artificial intelligence (AI), the Internet of Things (IoT), and 5G are driving the exponential growth in data generation, which is forcing corporations and hyperscale cloud providers to increase the size of their data centers. In order to handle their growing workloads, digital behemoths like Google Cloud, Microsoft Azure, and Amazon Web Services are constructing next-generation facilities with high power densities and effective cooling systems. For example, OpenAI, SoftBank, and Oracle formed a joint venture in January 2025 with the goal of investing $100 billion in AI infrastructure; by the conclusion of Trump's second term, the investment might grow to $500 billion. Ten enormous data centers totaling around 500,000 square feet are part of the Stargate project; one is now under construction in Abilene, Texas.
The growing use of edge computing is also fueling the expansion of the US data center building industry since it increases demand for decentralized data centers near consumers for improved performance and reduced latency. Sustainable and energy-efficient building techniques are also being promoted in new facilities by advantageous government regulations, tax breaks, and renewable energy requirements. For example, the US-based real estate company Related Companies formally unveiled a new data center development business in March 2025 with the goal of delivering gigawatts of capacity across the US and Canada. The business announced the opening and financing of Related Digital, a comprehensive platform devoted to infrastructure development and data center investment.
United States Data Center Construction Industry Overview
The fast growth of cloud computing, big data analytics, and growing industry digitization are driving the data center construction market in the United States. Businesses and governmental organizations are constantly investing in state-of-the-art infrastructure to accommodate massive data traffic and cutting-edge technologies. The need for scalable, effective, and secure data center infrastructure is being further accelerated by the development of AI, machine learning, and the Internet of Things. This has made it possible for engineering firms, technology companies, and construction companies to work together to provide cutting-edge facilities that satisfy changing needs. Energy efficiency and sustainability are two key areas of concentration in the US market. Operators are incorporating green building requirements, innovative cooling systems, and renewable energy sources into construction projects as a result of increased awareness of carbon footprints. Additionally, modular data center building is becoming more popular since it provides businesses expanding their operations with flexibility, quick deployment, and cost savings. These developments are turning the market into a center for creative infrastructure deployment and design.Many important drivers are driving the market, chief among them the growing demand for digital infrastructure across industries. Trends like machine learning (ML), artificial intelligence (AI), the Internet of Things (IoT), and 5G are driving the exponential growth in data generation, which is forcing corporations and hyperscale cloud providers to increase the size of their data centers. In order to handle their growing workloads, digital behemoths like Google Cloud, Microsoft Azure, and Amazon Web Services are constructing next-generation facilities with high power densities and effective cooling systems. For example, OpenAI, SoftBank, and Oracle formed a joint venture in January 2025 with the goal of investing $100 billion in AI infrastructure; by the conclusion of Trump's second term, the investment might grow to $500 billion. Ten enormous data centers totaling around 500,000 square feet are part of the Stargate project; one is now under construction in Abilene, Texas.
The growing use of edge computing is also fueling the expansion of the US data center building industry since it increases demand for decentralized data centers near consumers for improved performance and reduced latency. Sustainable and energy-efficient building techniques are also being promoted in new facilities by advantageous government regulations, tax breaks, and renewable energy requirements. For example, the US-based real estate company Related Companies formally unveiled a new data center development business in March 2025 with the goal of delivering gigawatts of capacity across the US and Canada. The business announced the opening and financing of Related Digital, a comprehensive platform devoted to infrastructure development and data center investment.
Key Factors Driving the United States Data Center Construction Market Growth
Increasing Cloud Dependency and Data Consumption
A favorable prognosis for the US data center construction market is being created by the rapidly increasing data demand and the growing reliance on digital infrastructure. In 2023, U.S. wireless networks sent a record 100.1 trillion megabytes of data, an 89% increase since 2021, according to CTIA's 2024 Annual Wireless Industry Survey. This increase emphasizes how important data centers are for organizing, processing, and storing digital information. Simultaneously, scalable and sophisticated data centers that can manage enormous workloads are required due to the quick growth of cloud computing services. Demand for safe, large-capacity, and effective data center facilities nationwide is only going to increase as more and more businesses move their workloads to the cloud.Industry Investment, Remote Work, and Sustainability Focus
A collective push for sustainable, energy-efficient data centers, fueled by environmental concerns and governmental requirements, is another factor propelling market expansion. Operators are implementing green practices, like employing renewable energy and enhanced cooling systems, in accordance with developments in the US data center construction industry. To address growing infrastructure demands, IT firms are simultaneously making significant investments in new facilities and enlarging old ones. The market dynamics are still impacted by the move toward remote work. Sixty-eight percent of tech workers work off-site, and roughly 22 million people, or 14% of the US total, now work entirely remotely. The necessity for scalable, robust data centers that can facilitate remote teams, real-time collaboration, and continuous digital operations is highlighted by this continuous change.Development of IoT, AI, and Technological Advancements
High-performance data centers are in high demand due to the quick development of artificial intelligence (AI), 5G connectivity, and the Internet of Things (IoT). These technologies need a strong computational infrastructure, low latency, and real-time data processing. Through Stargate, a partnership of OpenAI, SoftBank, and Oracle, President Trump unveiled a $500 billion private-sector AI infrastructure effort in January 2025. The proposal calls for the construction of 20 data centers and the creation of 100,000 jobs. These initiatives greatly speed up market progress by reflecting the increasing demand for hyperscale data center infrastructure to serve smart devices, linked ecosystems, and intelligent applications. Additionally, widespread 5G integration boosts data transmission speeds, driving further need for modern data center capacity.Challenges in the United States Data Center Construction Market
High Capital Investment and Operational Costs
One of the largest obstacles facing the US market is the significant financial investment needed to construct modern data centers. The expenses are high and include everything from purchasing land and constructing supplies to sophisticated cooling and security systems. The financial burden is further increased by operational costs for staffing, maintenance, and electricity. Competing with hyperscale companies who have easier access to financing presents challenges for smaller businesses and newcomers. Profitability is also impacted by changes in building expenses, supply chain hold-ups, and growing energy expenditures. High upfront and continuing expenditures continue to be a barrier to wider expansion, even while financing options and strategic alliances help reduce risks. This obstacle frequently limits growth in smaller markets, focusing expansion on places like California and Texas that have developed financial and technology ecosystems.Regulatory and Compliance Complexities
Strict regulatory regulations and compliance standards provide hurdles for the U.S. data center construction business. State and federal laws pertaining to data security, energy efficiency, land usage, and environmental sustainability must be followed by operators. Construction schedule delays and cost increases are frequently caused by obtaining permits and satisfying compliance deadlines. While federal regulations govern cybersecurity and data protection regimes, states like California enforce strict energy efficiency requirements. Environmental impact studies and zoning regulations also make project execution more difficult. Data centers contain sensitive data, therefore it's important but expensive to make sure privacy laws and security standards are followed. Compliance is a big issue because of these aspects, which need for extensive planning, specialist knowledge, and cooperation with regulatory agencies. Operators must successfully handle these complications in order to guarantee dependable and legal operations throughout the various U.S. regions.United States Data Center Construction Market Overview by States
The U.S. data center construction market is concentrated in regions like California, Texas, New York, and Florida, driven by strong digital infrastructure, cloud adoption, energy availability, and government support for technology investments and expansion. The following provides a market overview by States:California Data Center Construction Market
California leads the U.S. data center construction market, benefiting from its advanced technology ecosystem, high concentration of cloud providers, and robust digital infrastructure. Silicon Valley serves as a hub for hyperscale data center projects, driven by major cloud and tech giants. The state’s emphasis on renewable energy integration and stringent efficiency standards has encouraged eco-friendly construction practices, aligning with sustainability goals. Additionally, California’s strong connectivity infrastructure and proximity to leading enterprises enhance demand for advanced facilities. However, high energy costs, land availability issues, and strict regulatory requirements pose challenges to rapid expansion. Despite these hurdles, investment in innovative cooling solutions and modular construction continues to grow. California’s leadership in digital innovation ensures it remains a key market for data center construction, driving advancements in scalable, efficient, and environmentally responsible infrastructure.Texas Data Center Construction Market
Texas has emerged as a rapidly growing hub for data center construction in the U.S., supported by favorable tax policies, abundant land availability, and access to affordable energy. Major cities like Dallas, Houston, and Austin have become prime locations for hyperscale and colocation facilities. The state’s business-friendly environment and expanding technology sector attract significant investments from cloud service providers and enterprises. Texas also benefits from its central location, enabling efficient connectivity across North America. However, challenges such as extreme weather conditions and grid reliability concerns can impact operations. Despite these risks, strong demand for scalable infrastructure and government support for technology growth continue to drive expansion. With increasing focus on renewable energy integration and modular designs, Texas is poised to strengthen its position as one of the leading markets for U.S. data center construction.New York Data Center Construction Market
New York plays a pivotal role in the U.S. data center construction market, supported by its status as a global financial hub and high demand for secure, reliable IT infrastructure. The state’s dense enterprise presence, particularly in finance and media, fuels demand for advanced facilities. Investments in modular and sustainable construction solutions are growing as operators seek to balance energy efficiency with rising capacity needs. New York also benefits from strong connectivity infrastructure and proximity to major markets along the East Coast. However, high real estate costs, regulatory complexities, and energy challenges present barriers for developers. Despite these obstacles, the growing need for data security, cloud services, and digital transformation in key industries ensures continued market expansion. New York remains a critical location for advanced, resilient, and strategically located data center construction projects in the United States.Florida Data Center Construction Market
Florida is becoming a prominent market for data center construction, driven by its growing digital economy, favorable tax incentives, and strategic location as a gateway to Latin America. Major cities like Miami and Orlando are witnessing increased investments in colocation and hyperscale facilities. The state’s expanding population and rising digital service adoption further support infrastructure growth. Florida’s emphasis on renewable energy integration and modular construction enhances sustainability in new projects. However, challenges such as vulnerability to hurricanes and high humidity levels increase operational risks and construction complexities. Despite these concerns, advancements in disaster-resilient designs and robust backup systems are helping mitigate risks. The state’s position as a global connectivity hub and strong enterprise demand ensures ongoing growth, making Florida an increasingly important contributor to the overall expansion of the U.S. data center construction market.Recent Developments in U.S. Data Center Construction Market
- In June 2025, Sika revealed clever, long-lasting data center construction solutions, bolstering international investments expected to reach CHF 400 billion by 2028. With more than 1,000 data centers constructed, Sika's solutions provide end-to-end support and enhance sustainability, efficiency, and cooling while capitalizing on the growing demand for cloud computing and artificial intelligence.
- As part of its USD 100 billion AI-focused capital plan for 2025, Amazon stated in June 2025 that it would expand its data center in North Carolina by USD 10 billion. The campus, which consists of 20 buildings, will boost cloud and AI capabilities, promote STEM education and workforce training locally, and generate 500 high-skilled jobs.
- A USD 20 billion U.S. expansion aiming for 2,000MW capacity was announced by EDGNEX Data Centers by DAMAC in January 2025. Depending on demand, the investment is expected to quadruple. The project would expand DAMAC's worldwide digital infrastructure footprint while assisting hyperscalers and the expansion of AI in Sunbelt and Midwest regions.
Market Segmentations
Tier Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
Infrastructure
- IT Infrastructure
- Miscellaneous Infrastructure
- PD & Cooling Infrastructure
Vertical
- IT & Telecom
- BFSI
- Healthcare
- Government & Defense
- Energy
- Others
States
- California
- Texas
- New York
- Florida
- Illinois
- Pennsylvania
- Ohio
- Georgia
- New Jersey
- Washington
- North Carolina
- Massachusetts
- Virginia
- Michigan
- Maryland
- Colorado
- Tennessee
- Indiana
- Arizona
- Minnesota
- Wisconsin
- Missouri
- Connecticut
- South Carolina
- Oregon
- Louisiana
- Alabama
- Kentucky
- Rest of United States
All the Key players have been covered
- Overviews
- Key Persons
- Recent Developments
- SWOT Analysis
- Revenue Analysis
Company Analysis:
- AECOM
- Whiting-turner Contracting Company
- Turner Construction Co.
- Jacobs Solutions Inc.
- DPR Construction
- Skanska USA
- Balfour Beatty US
- Hensel Phelps
Table of Contents
1. Introduction3. Executive Summary11. Value Chain Analysis
2. Research & Methodology
4. Market Dynamics
5. United States Data Center Construction Market
6. Market Share Analysis
7. Tier Type
8. Infrastructure
9. Vertical
10. Top States
12. Porter's Five Forces Analysis
13. SWOT Analysis
14. Pricing Benchmark Analysis
15. Key Players Analysis
Companies Mentioned
- AECOM
- Whiting-turner Contracting Company
- Turner Construction Co.
- Jacobs Solutions Inc.
- DPR Construction
- Skanska USA
- Balfour Beatty US
- Hensel Phelps
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | September 2025 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 17.01 Billion |
| Forecasted Market Value ( USD | $ 28.95 Billion |
| Compound Annual Growth Rate | 6.0% |
| Regions Covered | United States |
| No. of Companies Mentioned | 8 |
