Global Data Center Construction Market to Reach USD 212.7 Billion by 2033 Amid AI-Driven Compute Demand, Cloud Expansion & Sustainability-Focused Infrastructure

Phoenix Research Forecasts 7.6% CAGR (2025–2033), With North America Leading and Asia-Pacific Emerging as the Fastest-Growing Region

Singapore — November 14th, 2025: The Global Data Center Construction Market is undergoing a period of rapid acceleration as organizations worldwide scale digital infrastructure to support cloud computing, AI/ML workloads, high-speed connectivity, and data localization mandates. Modern data center ecosystems now encompass hyperscale campuses, colocation hubs, enterprise on-premises facilities, and next-generation modular and edge sites designed for high-density compute environments.

The market is witnessing a fundamental shift as AI training clusters, GPU-intensive workloads, and low-latency applications become primary design considerations. This transition is driving widespread adoption of higher rack densities, liquid cooling and immersion cooling technologies, microgrid integration, and sustainability-first construction models.

According to the Phoenix Demand Forecast Engine, the Global Data Center Construction Market is valued at USD 118.4 billion in 2025 and is projected to reach USD 212.7 billion by 2033, expanding at a CAGR of ~7.6%. In 2024, North America held the largest market share—supported by hyperscaler capex, strong cloud adoption, advanced fiber networks, and robust power availability—while Asia-Pacific remains the fastest-growing region, fueled by rapid digitalization, 5G deployment, expanding cloud penetration, and large-scale data localization laws.

As enterprises accelerate hybrid cloud adoption and edge ecosystems grow, global data center construction pipelines are expanding rapidly. Power availability, sustainability mandates, supply-chain resilience, and modular construction methods will define the next era of digital infrastructure.

Key Drivers of the Global Data Center Construction Market Growth

1. AI/ML & High-Density Workload Expansion

AI training clusters, HPC workloads, and GPU-rich racks are reshaping data center blueprints, requiring advanced liquid cooling, upgraded substations, high-capacity PDUs, and reinforced electrical/mechanical systems.

2. Hyperscaler & Cloud Provider Investments

Leading cloud providers are driving multi-region campus growth, edge cluster rollouts, and sustainability-aligned hyperscale builds—accelerating global construction activity.

3. Edge Computing & 5G Integration

IoT adoption, autonomous systems, and latency-sensitive applications are fueling rapid deployment of micro-data centers across urban, industrial, and telecom environments.

4. Sustainability & Energy Efficiency Mandates

Net-zero goals and ESG requirements are boosting demand for renewable energy sourcing, heat reuse, advanced cooling technologies, and ultra-low PUE designs.

5. Modular & Prefabricated Construction

Prefabricated modules enable faster deployment, scalability, lower labor costs, and high uniformity—ideal for edge rollouts, disaster recovery, and colocation expansions.

6. Data Sovereignty, Security & Compliance

Regional data laws are pushing enterprises and governments to construct secure, compliant, sovereign digital infrastructure tailored to regulated industries.

7. Surging Power & Connectivity Requirements

New high-density facilities require robust power distribution, redundancy architectures, fiber backbones, and energy storage systems to ensure uptime and performance.

Global Data Center Construction Market Segmentation

By Facility Type

• Hyperscale Data Centers

• Colocation Data Centers

• Enterprise/On-Premises Data Centers

• Edge & Micro Data Centers

• Modular/Prefabricated Data Centers

By Component

• Electrical Infrastructure (substations, UPS, switchgear)

• Mechanical Systems (cooling, HVAC, liquid cooling)

• IT/Network Infrastructure

• Civil & Structural Construction

• Security & Monitoring Systems

• Commissioning Services

By Construction Model

• Design-Build

• Design-Bid-Build

• EPC (Engineering, Procurement, Construction)

• Modular/Prefabricated

By End User

• Hyperscalers (AWS, Azure, Google Cloud, Meta)

• Colocation Providers

• Telecom Operators

• Enterprises (BFSI, Healthcare, Retail, Government)

• Research & HPC Institutions

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

Regional Insights of the Global Data Center Construction Market

North America — Market Leader

North America dominates with hyperscale expansions, strong fiber infrastructure, high power availability, and large AI-ready campus developments. The U.S. leads global market share.

Europe — Sustainability-Focused Expansions

Europe emphasizes carbon-neutral construction, heat reuse systems, low-PUE design, and strict regulatory compliance. Nordic nations remain prime locations due to abundant renewable power.

Asia-Pacific — Fastest Growing Market

APAC growth is propelled by cloud adoption, digital transformation, urbanization, 5G expansion, and government-driven data localization. India, China, Japan, and Southeast Asia are witnessing hyperscale surges.

Latin America — Colocation & Cloud Momentum

Brazil and Mexico lead with growing telecom networks, expanding colocation activity, and increasing local cloud infrastructure investment.

Middle East & Africa — Digital Sovereignty Push

GCC nations and South Africa are investing heavily in sovereign cloud, hyperscale builds, and AI-aligned digital infrastructure to support national transformation agendas.

Leading Companies in the Global Data Center Construction Market

• Fluor Corporation

• AECOM

• Jacobs Engineering Group

• Turner Construction

• DPR Construction

• Black & Veatch

• Arup

• Skanska

• Schneider Electric

• ABB

• Eaton

• NTT Global Data Centers

• Digital Realty

• Equinix

• CyrusOne / QTS

NTT Global Data Centers currently holds the largest market share globally.

Strategic Intelligence and AI-Backed Insights

Phoenix Demand Forecast Engine

Models construction demand based on AI workload growth, cloud adoption curves, power availability, substation deployment timelines, and rack-density progression.

Construction Activity Mapping System

Identifies hyperscale expansions in North America and Europe, rapid edge facility rollouts in APAC and LATAM, and rising modular manufacturing capacity.

Sentiment Analyzer Tool

Shows increasing prioritization of sustainability, uptime reliability, renewable integration, and data sovereignty by enterprises and regulators.

Automated Porter’s Five Forces Assessment

Highlights moderate supplier power (electrical/mechanical systems), high hyperscaler buyer power, and high entry barriers due to capital, technology, and regulatory constraints.

Global Data Center Construction Market Forecast Snapshot (2025–2033)

Why the Global Data Center Construction Market Remains Critical

• Enables cloud computing, AI training, and digital services powering global economies.

• Provides low-latency, secure infrastructure essential for enterprises and governments.

• Drives innovation across cooling, energy systems, microgrids, and modular architecture.

• Strengthens national digital sovereignty and regulatory compliance.

• Serves as the backbone for 5G/6G, IoT, fintech, Industry 4.0, and smart city ecosystems.

Final Takeaway of the Global Data Center Construction Market

The Global Data Center Construction Market is entering a high-growth era fueled by AI workloads, hyperscaler expansion, digital transformation, and sustainability mandates. The coming decade will be shaped by liquid cooling adoption, microgrid-powered campuses, modular construction acceleration, and the proliferation of edge infrastructure across emerging markets.

According to Phoenix Research, growth through 2033 will be propelled by AI-driven compute needs, regulatory-led data localization, and unprecedented cloud-scale investment. Phoenix Research continues to support developers, EPCs, technology providers, and investors in navigating optimal build locations, supply-chain challenges, and next-gen construction models across global markets.

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Global Data Center Construction Market Size and Share Analysis 2025-2033