Data Center Construction Market To Reach $456.50 Billion By 2030

The global data center construction market was valued at approximately USD 240.97 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 11.8% from 2025 to 2030. This anticipated growth is largely attributed to the rising demand for robust digital infrastructure across various industry sectors. Several key factors are contributing to this trend, including the accelerated expansion of cloud computing, the proliferation of big data, and the increasing adoption of artificial intelligence (AI) and Internet of Things (IoT) technologies.

As enterprises continue to generate and manage vast volumes of data, there is a growing reliance on cloud service providers (CSPs) and colocation data centers. These facilities are essential for supporting large-scale storage, computing, and data processing needs. Consequently, the market is witnessing a surge in the construction of new, high-capacity data centers. At the same time, the rise of edge computing is driving the development of smaller, decentralized data centers that reduce latency and enable real-time data processing—particularly critical in applications such as autonomous vehicles, smart cities, and industrial IoT.

Investment by hyperscale data center operators such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud is playing a pivotal role in shaping the market. These tech giants are expanding their global infrastructure footprint to meet the soaring demand for cloud-based services. For instance, in March 2025, Thailand’s investment board approved USD 2.7 billion in investments for data center and cloud projects. Notable initiatives include data centers developed by Beijing Haoyang Cloud & Data Technology from China, Empyrion Digital from Singapore, and Thailand’s GSA Data Center 02.

The market is also being propelled by technological advancements such as the rollout of 5G networks and broader implementation of AI-powered applications, which require high-performance computing environments. Additionally, governments across the globe are actively promoting digital infrastructure development by offering financial incentives, subsidies, and regulatory support, which further accelerates market growth.

A significant trend shaping the industry is the shift toward sustainable and energy-efficient construction. Data center operators are increasingly prioritizing the development of green data centers that utilize renewable energy, advanced cooling systems, and environmentally-conscious architectural designs. These facilities aim to reduce power consumption and minimize carbon emissions, aligning with global sustainability goals. The modular data center construction approach is also gaining popularity due to its faster deployment, flexibility, and scalability.

In response to growing concerns around data security and business continuity, there is a heightened demand for high-redundancy data centers, such as those classified under Tier III and Tier IV standards. These facilities are engineered to provide uninterrupted service, ensuring seamless operations even during failures or disasters.

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Detailed Segmentation:

Infrastructure Insights
The IT infrastructure segment dominated the market in 2024, accounting for over 81% of the total market share. This segment includes critical components such as networking equipment, servers, and storage systems—all of which form the backbone of data center operations. The rising demand for computing power and scalable storage solutions continues to reinforce this segment's dominance.

Tier Type Insights
In 2024, the Tier III segment led the market, capturing a revenue share of over 58.0%. The dominance of this segment is driven by the growing need for reliable, scalable, and cost-efficient data center infrastructure that can ensure high availability with a balanced investment in redundancy and uptime assurance.

Vertical Insights
The IT & telecom vertical emerged as the largest contributor to market revenue in 2024, accounting for over 41.0% of the total share. This segment’s growth is underpinned by the exponential increase in data traffic, the rapid adoption of cloud technologies, and the expansion of digital communication networks. These trends are creating a continuous need for upgraded data center facilities to support service delivery and innovation.

Regional Insights
North America held a leading position in the global data center construction market in 2024, with a market share exceeding 41.0%. This regional dominance can be attributed to the high concentration of cloud infrastructure investments, widespread adoption of data-intensive technologies, and the accelerated pace of digital transformation across various industries such as healthcare, finance, retail, and manufacturing.

Key Players in Data Center Construction  Market

• ABB
• Acer Inc.
• Ascenty
• Cisco Systems, Inc.
• Dell Inc.
• Equinix, Inc.
• Fujitsu
• Gensler
• Hewlett Packard Enterprise Development LP
• Hitachi, Ltd.

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