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    US Data Center Construction Market

    ID: MRFR/ICT/16398-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Data Center Construction Market Research Report: By Type (Hyperscale, Colocation, Edge), By Construction Type (New Construction, Renovation, Expansion), By Data Center Tier (Tier I, Tier II, Tier III, Tier IV) and By End User (IT and Telecommunications, BFSI, Government) - Forecast to 2035

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    US Data Center Construction Market Infographic
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    US Data Center Construction Market Summary

    The US Data Center Construction market is poised for substantial growth, projected to reach 18.9 USD Billion by 2035 from a base of 9.18 USD Billion in 2024.

    Key Market Trends & Highlights

    US Data Center Construction Key Trends and Highlights

    • The market is expected to grow from 9.18 USD Billion in 2024 to 18.9 USD Billion by 2035.
    • A compound annual growth rate (CAGR) of 6.79% is anticipated for the period from 2025 to 2035.
    • The increasing demand for data storage and processing capabilities is driving market expansion.
    • Growing adoption of cloud computing due to the need for scalable infrastructure is a major market driver.

    Market Size & Forecast

    2024 Market Size 9.18 (USD Billion)
    2035 Market Size 18.9 (USD Billion)
    CAGR (2025-2035) 6.79%

    Major Players

    Iron Mountain, CoreSite Realty, Subzero Engineering, Facebook, Rackspace, Digital Realty, Equinix, Amazon Web Services, Adobe, Microsoft, Aligned Energy, CyrusOne, Google Cloud, NTT Communications, Hewlett Packard Enterprise

    US Data Center Construction Market Trends

    Opportunities are plentiful as the need for data centers expands, driven by the rapid adoption of advanced applications like artificial intelligence (AI) and the Internet of Things (IoT).

    Local municipalities are often providing incentives to facilitate the establishment of new facilities, which further drives growth in this sector. Collectively, these trends underscore a dynamic market poised for continued evolution in response to technological advancements and changing consumer needs.

    Market Segment Insights

    Data Center Construction Market Type Insights

    The US Data Center Construction Market is showcasing significant growth within various types of data centers, prominently featuring Hyperscale, Colocation, and Edge segments, each contributing uniquely to the industry landscape. Hyperscale data centers, characterized by their extensive scale and increased energy demands, drive substantial investment owing to the rising demand for cloud computing services and big data analytics. These centers play a vital role in supporting major technology firms and service providers, showcasing efficient operations and enhanced scalability.

    Meanwhile, Colocation data centers are becoming increasingly important as businesses seek to minimize capital expenditure while maintaining robust infrastructures. They offer flexible solutions that allow companies to share resources and reduce operational risks, thus catering effectively to the growing halfway point between public and private cloud adoption. Edge data centers are also gaining traction due to the burgeoning Internet of Things (IoT) ecosystem, with their strategic placement nearer to end-users enabling faster data processing and lower latency.

    This burgeoning segment underlines the importance of real-time data applications, particularly in urban areas where demand continues to surge. Overall, these segments illustrate a diversified landscape within the US Data Center Construction Market, driven by evolving technological needs and the imperative for optimized operational efficiencies, highlighting various growth opportunities for stakeholders.

    The market is influenced by trends such as sustainability, with many operators focusing on energy-efficient designs and renewable energy sources, reflecting a broader industry movement towards reducing carbon footprint.To adapt to the dynamic shifts in this sector, stakeholders must navigate challenges like land acquisition, regulatory hurdles, and the increasing costs of materials, while seizing opportunities that come from technological advancements and innovative construction practices. Hence, while awaiting substantial growth, each segment demonstrates a distinct significance and potential to cater to the evolving needs of data-intensive industries throughout the United States.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Data Center Construction Market Construction Type Insights

    The US Data Center Construction Market is undergoing significant transformation in the Construction Type segment, primarily driven by new construction, renovation, and expansion activities. New construction plays a crucial role in addressing the increasing demand for data processing capabilities, as companies seek to build advanced facilities equipped with the latest technology to enhance operational efficiency. Renovation projects focus on upgrading existing infrastructures, ensuring they remain competitive and compliant with the fast-evolving technological landscape.

    Meanwhile, expansion efforts are crucial for established data centers to accommodate the growing data traffic and storage requirements resulting from digitalization trends across various industries. The US government continues to support this growth through initiatives aimed at enhancing infrastructure resilience and sustainability, which directly impacts market opportunities. Collectively, these construction types represent a vital portion of the US Data Center Construction Market segmentation, showcasing the industry's commitment to innovation and adaptability in a rapidly changing environment.As technological advancements fuel the need for more efficient facilities, these construction types will remain critical to meeting evolving market demands.

    Data Center Construction Market Data Center Tier Insights

    The Data Center Tier segment within the US Data Center Construction Market represents a critical framework for assessing the design and operational capabilities of data centers. This segmentation categorizes facilities based on their infrastructure and redundancy levels, ensuring reliability and uptime. Tier I, the simplest level, offers limited redundancy and is suitable for small businesses, while Tier II introduces more robust features, aiding in operational continuity. The Tier III classification is designed for businesses requiring high availability with dual-powered systems and an uptime guarantee, making it a popular choice for mid-sized to large enterprises seeking efficient data operations.

    Lastly, Tier IV represents the pinnacle of data center design, focusing on maximum redundancy and fault tolerance, thereby catering to organizations that demand the highest level of uptime and resilience. As the demand for cloud services, digital infrastructure, and edge computing grows, these classifications play an essential role in the evolving landscape of data management in the US. Each tier's significance is underscored by the increasing reliance on data centers to support digital transformation initiatives across various industries, driving the need for investment in more advanced infrastructures to meet technological and operational demands.

    Data Center Construction Market End User Insights

    The US Data Center Construction Market showcases a diverse landscape across various end users, primarily comprising IT and Telecommunications, Banking, Financial Services and Insurance (BFSI), and Government sectors. The IT and Telecommunications segment plays a pivotal role in advancing digital communications and cloud storage solutions, driven by the ongoing demand for enhanced connectivity and data processing capabilities. In the BFSI sector, stringent regulatory requirements and the need for secure transactions are propelling investments in robust infrastructure, thereby highlighting the importance of data centers in maintaining financial integrity and reliability.

    The Government sector, meanwhile, is focused on building secure and efficient data centers to support various public services and initiatives, reflecting its commitment to embracing digital transformation. Collectively, these end-user segments contribute significantly to the market's dynamics and growth trajectory, illustrating how advancements in technology and the need for data security shape the US Data Center Construction Market landscape.

    Get more detailed insights about US Data Center Construction Market

    Key Players and Competitive Insights

    The US Data Center Construction Market is characterized by a dynamic landscape shaped by various competitive forces and technological advancements. With the increasing demand for data storage and processing, driven by the growth of cloud computing, artificial intelligence, and big data analytics, several companies are vying for market share. This competition has led to innovations in design and construction methodologies, emphasizing energy efficiency, sustainability, and scalability. As a result, key players are focusing on strategic partnerships, mergers and acquisitions, and value-added services to enhance their offerings and meet the evolving needs of customers.

    The market is also influenced by regulatory and environmental considerations that drive the construction of state-of-the-art facilities compliant with emerging standards.

    Iron Mountain has established a strong presence in the US Data Center Construction Market, primarily focusing on data storage and information management solutions. The company leverages its extensive experience in facility management and operational efficiencies to deliver high-quality data center constructions. Its strengths lie in its commitment to security, reliability, and compliance, making it appealing to businesses that prioritize data protection and regulatory adherence. Iron Mountain has effectively positioned itself as a trusted provider by introducing innovative solutions for optimizing data storage and management infrastructure, thus expanding its influence in the competitive landscape.

    The company is also known for its sustainable practices, which resonate with customers seeking environmentally-friendly construction options in the data center sector.

    CoreSite Realty operates prominently within the US Data Center Construction Market, distinguished by its focus on high-performance data center services and colocation solutions. The company provides reliable and secure infrastructure tailored to the specific needs of its clients, which range from enterprises to cloud providers. CoreSite Realty's strengths lie in its robust network and interconnection opportunities, allowing clients to maximize scalability and enhance performance. The company has maintained a strong market presence through strategic mergers and acquisitions, which have broadened its service offerings and geographic reach, solidifying its competitive advantage.

    CoreSite also emphasizes energy efficiency and sustainability in its construction practices, catering to an increasing demand for environmentally-conscious data centers.

    Key Companies in the US Data Center Construction Market market include

    Industry Developments

    The US Data Center Construction Market has experienced significant developments recently, fueled by increasing demand for cloud services and digital infrastructure. Companies such as Digital Realty and Equinix have continued to expand their footprints, with Digital Realty starting a new data center project in Dallas in October 2023, aimed at enhancing their capacity. In September 2023, Amazon Web Services announced plans to build additional facilities in Virginia, bolstering its presence in one of the largest data center markets. Iron Mountain recently expanded its data center operations, emphasizing sustainability in its construction practices.

    Investments in the sector are substantial, with reports indicating a projected growth exceeding 10% annually through 2025, influenced by burgeoning data processing demands. Furthermore, in August 2023, CyrusOne was acquired by a leading investment firm, reflecting ongoing consolidation in the market. Companies like Microsoft and Google Cloud also continue to ramp up their infrastructure expansion initiatives, affirming their strategic focus on increasing data center capacity in response to growing consumer and enterprise needs. Over the last few years, regulatory support for renewable energy initiatives has further encouraged data center investments, with a noticeable shift towards eco-friendly construction and operations.

    Market Segmentation

    Outlook

    • IT and Telecommunications
    • BFSI
    • Government

    Report Scope

    Report Scope:
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 8.51(USD Billion)
    MARKET SIZE 2024 9.18(USD Billion)
    MARKET SIZE 2035 18.9(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 6.785% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Iron Mountain, CoreSite Realty, Subzero Engineering, Facebook, Rackspace, Digital Realty, Equinix, Amazon Web Services, Adobe, Microsoft, Aligned Energy, CyrusOne, Google Cloud, NTT Communications, Hewlett Packard Enterprise
    SEGMENTS COVERED Type, Construction Type, Data Center Tier, End User
    KEY MARKET OPPORTUNITIES Cloud computing expansion, Renewable energy integration, Edge data center development, Enhanced cybersecurity infrastructure, Retrofit existing facilities
    KEY MARKET DYNAMICS Increasing cloud adoption, Rising demand for data storage, Emphasis on energy efficiency, Growth in edge computing, Regulatory compliance requirements
    COUNTRIES COVERED US

    FAQs

    What is the expected market size of the US Data Center Construction Market in 2024?

    The expected market size of the US Data Center Construction Market in 2024 is valued at 9.18 billion USD.

    What will be the market value of the US Data Center Construction Market by 2035?

    By 2035, the US Data Center Construction Market is expected to reach a value of 18.9 billion USD.

    What is the compound annual growth rate (CAGR) for the US Data Center Construction Market from 2025 to 2035?

    The expected CAGR for the US Data Center Construction Market from 2025 to 2035 is 6.785%.

    Which segment is anticipated to be the largest in the US Data Center Construction Market by 2035?

    The Hyperscale segment is anticipated to have the largest market share, with a valuation of 7.5 billion USD by 2035.

    What are the projected values for the Colocation segment in 2024 and 2035?

    The Colocation segment is projected to be valued at 2.8 billion USD in 2024 and 6.2 billion USD by 2035.

    How much is the Edge segment expected to be worth by 2035?

    The Edge segment is expected to reach a value of 5.2 billion USD by 2035.

    Who are the key players in the US Data Center Construction Market?

    Key players in the market include Iron Mountain, CoreSite Realty, Digital Realty, and Amazon Web Services, among others.

    What opportunities are driving the growth of the US Data Center Construction Market?

    The growth of cloud computing and increasing demand for data storage are significant opportunities driving the market.

    What challenges might the US Data Center Construction Market face in the coming years?

    Challenges may include rising energy costs and regulatory hurdles related to environmental considerations.

    How is the regional demand expected to change for the US Data Center Construction Market by 2035?

    The demand for data center construction is expected to increase across regions due to the rise in digital services and data usage.

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