Data Center Construction Market Report

Market Size & Opportunities

Global Demand Analysis & Sales Opportunities in Data Center Construction Market 

• The annual demand for data center construction was USD 334.8 billion in 2025 and is expected to reach USD 363.5 billion in 2026, up 8.3% than the value in 2025. 

• During the forecast period (2026-2032), the market is expected to grow at a CAGR of 7.4%. The annual demand will reach USD 557.8 billion in 2032, which is almost 1.5 times the demand in 2026. 

• North America is expected to maintain a dominant market share, generating the largest demand across regions, while Asia Pacific is expected to be the fastest-growing regional market during the forecast period.

• By data center type, small-scale data centers are expected to account for the largest market share during the forecast period.

• By infrastructure, mechanical infrastructure is expected to maintain a dominant position in the market throughout the forecast period.

• By end use, BFSI is expected to account for the largest market share during the forecast period.

“According to our Senior Analyst at Stratview Research, the global data center construction market will generate a cumulative sales opportunity worth USD 3,211.8 billion during 2026-2032. During the next five years, small-scale data centers, mechanical infrastructure, and Asia Pacific are some of the high-opportunity segments to bank upon.”

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Market Statistics

Have a look at the sales opportunities presented by the data center construction market in terms of growth and market forecast. 

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Market Dynamics

The data center construction market is being shaped by the rapid expansion of AI and cloud workloads, increasing power and cooling requirements, and the need for faster capacity deployment. The market trend toward high-density facilities and advanced construction approaches is creating new growth opportunities, while power availability, water requirements, and skilled labor shortages continue to constrain project development. A detailed market analysis of these factors helps identify the key forces influencing construction activity and investment across major data center markets.

Market Drivers

Accelerating AI Infrastructure Investments

The rapid expansion of AI workloads is increasing the need for new high-capacity data center facilities because existing infrastructure cannot accommodate the power and computing requirements of advanced AI systems. This is supporting market growth by prompting hyperscalers and technology companies to build dedicated and expanded facilities with substantially higher capacity.

• Microsoft announced a multibillion-dollar data center campus in Pecos, Texas, in June 2026, adding approximately 2 GW of capacity specifically to meet sustained demand for AI and cloud services. The project is expected to support more than 6,000 construction jobs at peak build-out, directly linking AI infrastructure requirements with new physical data center construction.

• Meta announced a 168 MW AI-enabled data center in Jamnagar, India, in June 2026, with Reliance developing the facility and options to scale capacity. The project is intended to expand Meta's AI infrastructure, showing how rising AI computing requirements are driving new high-capacity facilities and associated construction activity.

Rising Cloud Service Adoption

The rapid adoption of cloud-based applications and enterprise services is increasing the amount of computing capacity that cloud providers must deploy across regions. This rising market demand is pushing hyperscalers to accelerate data center capacity additions, creating sustained requirements for new facilities and expansion projects.

• Google Cloud revenue grew 82% year over year in Q2 2026, while its cloud backlog reached USD 514 billion, reflecting strong demand across customers, industries, and geographies. The sustained growth is increasing the infrastructure capacity required to deliver cloud services, supporting continued investment in data center facilities.

• Amazon announced an additional USD 13 billion investment in June 2026 to expand AWS data center capacity in Mumbai and Hyderabad, taking its planned investment in India to USD 48 billion between 2026 and 2030. The expansion will provide greater cloud and AI infrastructure capacity for businesses, startups, and government organizations, directly supporting new data center construction and expansion.

As per the analyst, the global data center construction industry is evolving rapidly. While conducting the market analysis and speaking with leading industry players, it is quite clear that the next decade will be shaped by trends such as AI-driven capacity expansion, high-density infrastructure, and modular data center construction.”

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Market Challenge:

Limited Power and Grid Connection Availability

Data centers require large, reliable power connections before newly constructed facilities can become operational, making electricity availability a critical constraint on project development. Lengthy grid-connection queues and limited transmission capacity are slowing project timelines, restricting suitable construction locations, and limiting how quickly market demand can translate into completed data center capacity.

• The International Energy Agency (IEA) estimates that grid constraints could delay around 20% of global data center capacity planned for construction by 2030. Such delays can extend development schedules and prevent developers from bringing planned facilities online when computing capacity is needed.

Water Availability for Data Center Cooling

Data centers require effective cooling systems to manage the heat generated by high-density computing equipment, making access to adequate water an important site-selection and infrastructure consideration. Increasing cooling requirements and water stress in some regions can raise development constraints and require additional investment in water-efficient systems, creating a challenge for market demand to translate into new data center capacity.

• Microsoft reported in June 2026 that its average data center water-use effectiveness improved to 0.27 liters per kWh in 2025, down from 2.3 liters per kWh in its first-generation facilities. Approximately 90% of its owned data center fleet was operating with highly efficient, low- to zero-water cooling systems, showing how water availability is influencing cooling infrastructure and facility design.

Shortage of Skilled Construction Labor

The rapid expansion of data center projects is increasing competition for specialized workers, particularly across mechanical, electrical, and plumbing trades. Limited availability of skilled construction labor can increase project costs and extend construction schedules, making it harder for market demand to translate into completed data center capacity.

Market Opportunities:

Adoption of Modular and Prefabricated Construction

The need to deliver data center capacity within shorter timelines is encouraging developers to shift toward modular and prefabricated construction methods. This market trend can reduce on-site work, improve construction efficiency, and help developers address skilled-labour shortages while scaling facilities rapidly.

• In June 2026, Delta Electronics introduced a prefabricated AI modular data center solution for high-density, megawatt-scale computing environments. The company states that its factory-integrated approach can reduce deployment time by up to 60%, demonstrating how off-site manufacturing can accelerate data center construction and capacity deployment.

Integration of Liquid Cooling in New Data Centers

The rising power density of AI and high-performance computing is requiring new facilities to incorporate advanced cooling systems during the design and construction stage rather than relying solely on conventional air cooling. This market trend for data center construction is creating opportunities for construction projects that integrate liquid cooling, high-density rack layouts, and specialized thermal infrastructure from the outset.

• Equinix opened its fourth International Business Exchange data center in Mumbai in April 2026, with an initial investment of more than USD 95 million and capacity for over 1,370 cabinets, scalable to more than 5,475 cabinets. The facility includes liquid-cooling capability for high-performance workloads, showing how new data center construction is incorporating advanced cooling infrastructure to support AI and hybrid-cloud deployments.

• Schneider Electric launched its first Motivair liquid-cooling solutions factory in India in February 2026, specifically to support the country's expanding high-density data center ecosystem. The localization of liquid-cooling production can improve access to specialized thermal infrastructure as developers build facilities designed for increasingly power-dense AI workloads.

Segments’ Analysis

By Data Center

“Small-scale data centers are expected to remain the dominant data center segment in the data center construction market over the forecast period.”

• The market is segmented into small-scale, medium-scale, large-scale, and others.

• Small-scale data centers are expected to account for the largest share, supported by their deployment across regional operations, distributed computing, and applications requiring localized data processing. GMI identifies small-scale data centers as the dominant segment.

By Infrastructure

“Mechanical infrastructure is expected to remain the dominant infrastructure segment in the data center construction market over the forecast period.”

• The market is segmented into electrical infrastructure, mechanical infrastructure, networking infrastructure, and others.

• Mechanical infrastructure is expected to account for the largest share, supported by the increasing cooling, HVAC, rack, ductwork, and other thermal-management requirements of modern data centers. GMI identifies mechanical infrastructure as the dominant segment.

By End Use

“BFSI is expected to remain the dominant end-use segment in the data center construction market over the forecast period.”

• The market is segmented into BFSI, energy, healthcare, IT & telecom, government, manufacturing, and others.

• BFSI is expected to account for the largest share, supported by stringent security, compliance, resilience, and uptime requirements for financial data and transaction-processing systems. GMI identifies BFSI as the dominant end-use segment.

By Region

“North America is expected to remain the dominant regional market for data center construction, while Asia Pacific is expected to witness the fastest growth over the forecast period.”

• The market is segmented into North America, Europe, Asia Pacific, and Rest of the World.

• North America is expected to account for the largest share, supported by its concentration of hyperscale operators, established digital infrastructure, and continued investment in AI and cloud facilities. Meanwhile, Asia Pacific is expected to witness the fastest growth, driven by expanding cloud adoption, digitalization, and data center investment across emerging markets.

“Analysis suggests that the Top 10 countries generate >80% of the annual sales for the data center construction. A few countries are the demand powerhouses and will drive the regional markets in big ways offering attractive business opportunities.”

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Competitive Landscape

The market is fragmented with the presence of less than 100 global and regional players. Some of the major players also manufacture data center construction and its raw materials. Leading players hold excellent market positions with a vast product portfolio, a wide distribution network, and years of track record.

The following are the key players in the data center construction market:

• AECOM

• Skanska

• NTT Facilities

• Kajima

• Turner & Townsend

• DPR Construction

• Jacobs Engineering

• Obayashi

Note: The above list is not an exhaustive list of the key players in the market. If your company is active in this market and would like to be considered for inclusion in future editions of this study, please contact us at [email protected].   

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Recent Developments/Mergers and Acquisitions:

Recent mergers & acquisitions and other developments in the data center construction market reflect evolving market trends, and impact the market. Below given are a few recent developments in the market –

• In September 2026, TCS, through its subsidiary HyperVault AI Data Center, announced plans to develop a 1 GW AI data center campus in Hyderabad, India, with an investment potential of up to USD 7.4 billion. The 264-acre campus will be developed in phases to support high-density AI computing workloads.

• In August 2026, Yondr Group and Cerberus Capital Management acquired a 40-acre site in Manassas, Virginia, to develop a 72 MW data center campus. The facility is expected to become operational in 2029 and will serve hyperscale customers across cloud, enterprise, and AI applications.

• In June 2026, QTS announced a USD 6 billion investment in its Eagle Mountain data center campus in Texas. The 193-acre campus is being developed to support large-scale computing capacity and expand QTS’s data center footprint.

• In May 2026, the Canada Pension Plan Investment Board received approval from the Competition Commission of India to acquire a shareholding in CtrlS Datacenters. The transaction strengthens investment in India's data center and colocation infrastructure, including facilities supporting cloud and GPU-based workloads.

• In March 2026, Eaton completed its acquisition of Boyd Thermal for USD 9.5 billion. The transaction added liquid-cooling and thermal-management technologies to Eaton's portfolio for high-density data center infrastructure.

• In March 2026, Vertiv agreed to acquire ThermoKey S.p.A. The transaction expands Vertiv's heat-rejection and heat-exchange capabilities, including solutions for liquid-cooled and high-density data center environments.

• In February 2026, Trane Technologies agreed to acquire LiquidStack, a provider of direct-to-chip and immersion liquid-cooling technologies for data centers. The transaction strengthens Trane Technologies' thermal-management capabilities for high-density computing applications.

• In January 2026, Legrand announced the acquisitions of Keydak in China and TES in the UK, strengthening its data center rack and power-distribution capabilities. The two acquisitions were expected to contribute approximately €285 million in annual revenue.

Report Scope

Market Definition 

The data center construction market refers to the development, construction, expansion, and renovation of facilities designed to house servers, storage systems, networking equipment, and other critical IT infrastructure. It covers the construction of new data center facilities as well as the expansion or modernization of existing sites to accommodate increasing computing and storage requirements. The market encompasses the development and installation of electrical infrastructure, mechanical and cooling systems, networking infrastructure, racks, ductwork, raised flooring, backup power systems, and other supporting infrastructure required for reliable data center operations. It serves a wide range of applications, including cloud computing, enterprise IT, telecommunications, artificial intelligence, digital services, and high-performance computing.

Report Structure 

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. 

The following are the key features of the report: 

• Market structure: Overview, industry life cycle analysis, supply chain analysis. 

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis. 

• Market trend and forecast analysis. 

• Market segment trend and forecast. 

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc. 

• Attractive market segments and associated growth opportunities. 

• Emerging trends. 

• Strategic growth opportunities for the existing and new players. 

• Key success factors. 

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Segmentation

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market. 

The data center construction market is segmented into the following categories: 

Data Center Construction Market, By Data Center Type

• Small-Scale Data Center

• Medium Data Center

• Large Data Center

• Others

Data Center Construction Market, By Infrastructure

• Electrical Infrastructure

• Mechanical Infrastructure

• Networking Infrastructure

• Others

Data Center Construction Market, By End Use

• BFSI

• Energy

• Government

• Healthcare

• Manufacturing

• IT & Telecom

• Media & Entertainment

• Retail

• Others

Data Center Construction Market, By Region                                                      

• North America (Country Analysis: The USA, Canada, and Mexico) 

• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe) 

• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific) 

• Rest of the World (Country Analysis: Brazil and Others) 

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center construction market realities and future market possibilities for the forecast period. 

The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. 

The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process. 

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 

We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.  

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients: 

Company Profiling 

• Detailed profiling of additional market players (up to three players) 

• SWOT analysis of key players (up to three players) 

Competitive Benchmarking 

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances 

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