Data Center Construction Market Growing at 7.4% CAGR | Expand USD 41.4 Billion by 2032 Globally

WILMINGTON, DE, UNITED STATES, July 17, 2025 /EINPresswire.com/ -- Allied Market Research published a new report, titled, “Data Center Construction Market Growing at 7.4% CAGR | Expand USD 41.4 Billion by 2032 Globally.” The report offers an extensive analysis of key growth strategies, drivers, opportunities, key segments, Porter’s Five Forces analysis, and competitive landscape. This study is a helpful source of information for market players, investors, VPs, stakeholders, and new entrants to gain a thorough understanding of the industry and determine steps to be taken to gain competitive advantage.

The data center construction market was valued at $212.6 billion in 2023, and is estimated to reach $416.4 billion by 2032, growing at a CAGR of 7.4% from 2024 to 2032.

Prime Determinants of Data Center Construction Market growth

As digital transformation accelerates across industries across the globe, fueled by the proliferation of mobile devices, rise in internet penetration, and adoption of cloud-based applications, there is a huge demand for robust infrastructure capable of handling vast amounts of data. Hyperscale data centers, characterized by their immense scale and efficiency, are uniquely positioned to meet this escalating demand. These facilities offer unparalleled computing power, storage capacity, and networking capabilities, enabling organizations to leverage advanced technologies such as AI, IoT, and big data analytics to drive innovation and gain competitive advantage. These factors are contributing to the growth of the data center construction market globally.

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Market Segmentation Data Center Construction Market

The data center construction market size is segmented into construction type, tier, data center size, industry vertical, and region. On the basis of construction type, the market is divided into general construction, electrical design, and mechanical design. As per tier, the market is segregated into tier 1, tier 2, tier 3, and tier 4. On the basis of data center size, the market is classified into small data center, medium data center, and large data center. Based on industry vertical, the region is classified into BFSI, IT and telecommunications, healthcare, government, manufacturing, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Segment Highlights

Businesses are increasingly turning to colocation facilities rather than maintaining their own data centers. Colocation providers provide shared data center space with secure infrastructure, allowing businesses to scale their IT requirements without the need to build and operate their own facilities. Additionally, the volume of data generated globally is rapidly increasing, thanks to technologies such as the Internet of Things (IoT) , artificial intelligence (AI) , and big data analytics. This ever-increasing data requires greater storage and processing capacity, necessitating the construction of additional data centers thereby propelling the growth of the market.

Similarly, hyperscale’s and colocation providers are expanding into new locations to serve increasing local markets. This regional diversity necessitates the establishment of data centers in important places around the world. Moreover, businesses globally are undergoing digital transformation, resulting in a greater reliance on cloud-based services and data-driven applications. This digital revolution demands a strong data center infrastructure to accommodate the new technologies. These factors are further contributing to the growth of the global data center construction market.

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Regional Outlook

Based on region, the data center construction market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the highest share in 2023. North America has appropriate infrastructure due to the presence of prime vendors in nations such as the United States and Canada, leading in an increase in demand for smart artificial intelligence-powered equipment in this region.

Leading Market Players : Data Center Construction Market

Cisco Systems Inc
IBM Corporation
Oracle Corporation
ABB
Hitachi Ltd
Equinix, Inc.
Schneider Electric
Huawei Technologies Co., Ltd.
Fujitsu
Hewlett Packard Enterprise Development LP.

The report provides a detailed analysis of these key players in the global data center construction market. These players have adopted different strategies such as new development, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, portfolio, and strategic moves of market players to showcase the competitive scenario.

Industry Trends : Data Center Construction Market

● In August 2023, the Communications, Space and Technology Commission (CST) of Saudi Arabia announced the new data center services regulation focused on energy management registration mandates, and data security requirements. This rule came into effect across the country from January 2024.

● In November 2020, The Ministry of Electronics, and Information Technology (MEITY) of India announced the draft of new data center policies. The policy underlies the regulations for authorization, construction and operation of new data centers.

● In December 2023, the European Commission announced its initiative to implement sustainability measures across data centers for studying energy consumptions across newly constructed and old data centers.

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Recent Development : Data Center Construction Market

● On April 29, 2024, AdaniConneX, announced its plans to construct a sustainability-linked financing data center. Adani Enterprises and EdgeConnex entered into a joint venture with an investment of US$ 1.44 billion for the construction of the data center.

● On April 24, 2024, BSNL, an Indian telecommunication provider, and Tata Communications partnered for building multiple data centers across India. The partnership is aimed to expand the data centers capacity across the country.

● On April 10, 2024, an investment of US$ 1 billion was announced by Google for constructing a data center in Kansas City. The investment was made by Google to expand its data center presence in the Midwest.

● On March 4, 2024, Zoho Corporation, announced the opening of the first two Middle East data centers in Saudi Arabia to ensure local data is stored within the geographical boundaries of the Kingdom, in line with Personal Data Protection Laws (PDPL)

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

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