Global Data Center Construction Market to Expand at 9.8% CAGR by 2031 Amid Surging Demand for Cloud Infrastructure and Digital Services

 The Global Data Center Construction Market is poised for significant expansion, projected to grow at a CAGR of 9.8% during the forecast period 2024–2031, driven by the exponential growth of cloud computing, digital transformation across industries, and the increasing need for secure and scalable storage solutions.

As the digital economy accelerates, the demand for data centers with robust infrastructure, high redundancy, and energy-efficient design is at an all-time high. Data center construction goes far beyond standard commercial buildings requiring meticulous planning, customized cooling systems, intelligent resource monitoring, and resilient infrastructure to ensure uninterrupted operations.

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Key Market Drivers Pushing Data Center Construction Growth

1. Surge in Cloud Computing and Digital Transformation

The rising global reliance on cloud-based services and enterprise data processing is fueling the demand for hyperscale and edge data centers. Public and private sector investments in digital infrastructure are prompting construction of more advanced, secure, and sustainable facilities.

2. Edge Data Centers Gaining Popularity

Edge computing trends are pushing companies to build smaller, decentralized data centers closer to end-users to reduce latency. This shift is creating new construction opportunities in regional and tier-2 cities.

3. AI and IoT Workloads Drive Infrastructure Modernization

The deployment of AI and IoT technologies requires high-density, high-performance data center environments. The need for customized layout designs and superior thermal management systems is fueling new construction projects with integrated automation and monitoring capabilities.

4. Rising Data Privacy and Compliance Standards

With stricter data protection regulations like GDPR, CCPA, and HIPAA, organizations are building data centers within regulatory jurisdictions to maintain control over sensitive data and ensure compliance.

5. Sustainability as a Construction Imperative

Growing awareness of environmental concerns has made energy efficiency and sustainable construction practices critical. Companies are incorporating solar panels, green cooling systems, and modular designs to meet ESG goals.

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Opportunities in the Market

• Modular Data Center Construction: Rapid deployment and cost-effective scalability are pushing the popularity of prefabricated modular data centers across remote and underserved regions.
  
  

• AI-Enabled Facility Management: Integrating AI for predictive maintenance, load balancing, and real-time monitoring offers competitive differentiation.
  
  

• Green Building Certifications: Growing pressure to reduce carbon emissions presents opportunities for builders offering LEED-certified and carbon-neutral infrastructure solutions.

Regional Insights

United States: North American Data Hub

As per our research analysis, the U.S. dominates the data center construction market with widespread cloud adoption, robust digital infrastructure, and massive demand from hyperscale providers like Amazon Web Services, Microsoft Azure, and Google Cloud. Recent expansions by Meta and Oracle further validate the market’s trajectory. Tax incentives and growing colocation requirements in states like Virginia, Texas, and Arizona have made them prime construction zones.

Japan: Technological Precision Meets Demand

Japan’s data center market is evolving rapidly, fueled by its tech-savvy population, growing 5G rollout, and government initiatives to modernize digital infrastructure. With land scarcity, Japanese builders emphasize vertical construction, seismic safety, and efficient power usage. Tokyo and Osaka remain key hubs, with expansion into rural regions driven by the edge computing trend.

Competitive Landscape

The market is highly competitive and fragmented, with key players innovating on infrastructure flexibility, automation, and energy use. Major players include:

• Schneider Electric *

• Structure Tone Organization

• Turner Construction Company

• DPR Construction

• AECOM

• M. A. Mortenson Company

• Brasfield & Gorrie, L.L.C

• Holder Construction Group, LLC

• ISG ltd

• ROGERS-O’BRIEN CONSTRUCTION COMPANY, LTD

Recent Mergers and Acquisitions

• Vertiv announced the acquisition of a cooling technology startup to strengthen its edge data center offerings.
  
  

• DigitalBridge Group invested in a new greenfield data center project in Southeast Asia, aimed at serving Japanese and U.S.-based hyperscalers.
  
  

• Equinix completed its acquisition of an enterprise colocation firm in Texas to expand its North American data center footprint.
  
  

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Conclusion

The Data Center Construction Market is on the brink of transformational growth. As enterprises move toward digitization, AI-driven operations, and cloud-native environments, the need for scalable, secure, and sustainable data centers will continue to intensify. Companies that prioritize flexible infrastructure, energy optimization, and compliance-readiness will lead the market into a future shaped by intelligent data infrastructure.

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