Market Overview

The United States data center construction market size was valued at USD 14,734.63 Million in 2024 and is forecast to reach USD 24,143.20 Million by 2033, growing at a CAGR of 5.64% during 2025-2033. Growth is driven by surging demand from AI, cloud computing, and hyperscale needs, with key regions like Northern Virginia and Texas expanding modern Tier-3 and Tier-4 facilities. This expansion supports scalable, energy-efficient data centers featuring advanced cooling and modular designs.

Study Assumption Years

●     Base Year: 2024

●     Historical Years: 2019-2024

●     Forecast Period: 2025-2033

United States Data Center Construction Market Key Takeaways

●     Current Market Size (2024): USD 14,734.63 Million

●     CAGR (2025-2033): 5.64%

●     Forecast Period: 2025-2033

●     Demand is propelled by AI, cloud adoption, and hyperscale computing requirements.

●     Advancements in Tier-3 and Tier-4 data centers with efficient cooling boost market growth.

●     Edge computing's rise necessitates decentralized data centers closer to users.

●     Favorable policies and tax incentives encourage sustainable, energy-efficient data center construction.

●     Major investments by tech giants and real estate firms are expanding US data center capacity.

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Market Growth Factors

The data center construction market's growth is largely driven by the increased requirement of data centers due to the growing need for data infrastructure for artificial intelligence (AI), machine learning (ML), IoT, and 5G technologies, which require hyperscale cloud service providers and enterprise customers like Google Cloud, Microsoft Azure, and Amazon Web Services (AWS) to expand their data center capacity. In 2025, OpenAI, SoftBank, and Oracle announced a $100 billion joint venture to build the Stargate AI infrastructure, the first large modern data center built to accommodate increased workloads with advanced cooling, modular designs, and a greater capacity to meet energy requirements.

Secondly, the growth of edge computing is also likely to drive the market as organizations build more decentralized data centers closer to users, minimizing latency, improving performance, and processing data close to the source. Encouraging government policies and tax incentives and renewable energy goals are also likely to drive the green data centers market. Real estate companies such as Related Companies are long-term investors in gigawatts of data center capacity in the United States and Canada.

Finally, the increasing reliance on secure IT infrastructure across multiple industries including healthcare, banking and e-commerce has driven investment into modular and scalable data centers which support organizations with a distributed workforce as 14% of employees in the US work remotely full time with 68% of tech sector employees also remotely working. Furthermore, the increasing trend of remote working and technology development indicates the growth of data center infrastructure is not going to slow down.

United States Data Center Construction Market Segmentation

By Construction Type:

●     Electrical Construction: Dominates due to the power-intensive nature of data centers requiring resilient electrical setups for uptime.

●     Mechanical Construction: Critical for thermal management, energy efficiency, and cooling technologies such as liquid cooling and free-air cooling.

By Data Center Type:

●     Mid-Size Data Centers: Preferred for scalability, cost-efficiency, and speed; suitable for regional enterprises and edge computing.

●     Enterprise Data Centers: Maintained by large firms for security and compliance, important for government, healthcare, and finance sectors.

●     Large Data Centers: Dominant segment catering to hyperscalers and cloud providers, supporting massive and energy-efficient workloads.

By Tier Standards:

●     Tier I and II: Cost-effective for small to mid-sized enterprises with moderate uptime, ideal for secondary and edge facilities.

●     Tier III: Balances uptime and cost, widely used in financial services and healthcare with 99.982% uptime.

●     Tier IV: Highest fault tolerance and 99.995% uptime, favored in defense, government, and hyperscale applications requiring zero downtime.

By Vertical:

●     Public Sector: Government investments for secure, compliant data centers supporting digital governance and national security.

●     Oil and Energy: Digital transformation requires real-time data centers for operations in energy-rich US regions.

●     Media and Entertainment: High bandwidth and low latency needs drive investments for streaming, gaming, and content distribution.

●     IT and Telecommunication

●     Banking, Financial Services and Insurance (BFSI)

●     Healthcare

●     Retail

●     Others

Regional Insights

The Southern US emerges as the dominant region in data center construction, driven by business-friendly regulations, ample land, and competitive energy prices. States such as Texas, Georgia, and Virginia offer significant tax incentives and host major cloud providers and tech firms. Rapid population and urban growth fuel data traffic, heightening local data center demand. Enhanced power grids and renewable energy projects further solidify the South as a data center hotspot.

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Recent Developments & News

In June 2025, Sika announced smart solutions enhancing sustainability and cooling for data center construction, aligned with anticipated global investments exceeding CHF 400 Billion by 2028. Amazon revealed a USD 10 Billion expansion in North Carolina, part of a USD 100 Billion AI-focused 2025 capital plan, promising 500 high-skilled jobs. Earlier in January 2025, EDGNEX by DAMAC launched a USD 20 Billion US expansion targeting 2,000MW capacity. Also in January 2025, Engine No. 1, Chevron, and GE Vernova announced plans for US data centers powered by domestic natural gas with launches expected by 2027. Meta announced a USD 10 Billion AI-optimized data center in northeast Louisiana in December 2024, running on 100% renewable energy.

Key Players

●     Turner Construction

●     DPR Construction

●     Jacobs Engineering

●     Holder Construction

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