Comprehensive Snapshot for U.S. Data Center Construction Market, Including Zone and Segment Analysis in Brief.
Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Published Date: June-2025
ID: PMRREP35442
Number of Pages: 148
The U.S. data center construction market size is predicted to reach US$ 133.4 Bn in 2032 from US$ 67.0 Bn in 2025. It will likely witness a CAGR of around 10.4% in the forecast period between 2025 and 2032.
The U.S. is undergoing an unprecedented surge in data center construction, pushed by the exponential growth of AI workloads, cloud adoption, and edge computing demands. The market has evolved into a sprawling infrastructure arms race among hyperscalers, colocation providers, and energy firms. From liquid-cooled AI campuses in the Midwest to modular disaster recovery hubs in the Southeast, the construction sector is no longer confined to Silicon Valley or Northern Virginia. It is a decentralized, innovation-intensive expansion, transforming not just where data lives, but how it is provisioned and protected for the future.
Key Industry Highlights
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Market Attribute |
Key Insights |
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U.S. Data Center Construction Market Size (2025E) |
US$ 67.0 Bn |
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Market Value Forecast (2032F) |
US$ 133.4 Bn |
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Projected Growth (CAGR 2025 to 2032) |
10.4% |
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Historical Market Growth (CAGR 2019 to 2024) |
6.2% |
Increasing investments from hyperscale data center operators are pushing the U.S. data center construction market growth, reveals Persistence Market Research. This is because of the emphasis on supporting the infrastructure requirements of generative AI, large-scale cloud computing, and edge services. In 2024, Microsoft, Amazon Web Services (AWS), and Google collectively announced over US$ 40 Bn in U.S. data center infrastructure expansion plans, nearly doubling their capital expenditures compared to 2022. This growth is translating into multi-phase construction projects across both primary and emerging markets.
Microsoft, for instance, is building a 315-acre data center campus in Mount Pleasant, Wisconsin, with an anticipated power load of over 350 MW upon completion, exemplifying large-scale data center transformation. It will be specifically designed to house AI-optimized hardware and GPU clusters. Such projects demand innovative power distribution, multi-tiered cooling systems, and high-speed optical interconnection, thereby augmenting the construction industry toward high-density, custom-built facilities.
Supply chain disruptions and environmental concerns are increasingly becoming key friction points for data center construction in the U.S. Lead times for various electrical and mechanical components have extended significantly, with some delivery timelines stretching beyond 80 weeks as of early 2025. This has directly delayed several leading hyperscale and colocation builds. Equinix, for example, had to push back expansion timelines in its Dallas and Chicago campuses owing to a shortage of high-voltage equipment, impacting downstream customer onboarding schedules.
Environmental regulations are another constraint, mainly in water-stressed or carbon-sensitive states. In Arizona and California, local authorities have tightened permitting processes for new facilities due to water consumption concerns from conventional evaporative cooling systems. Hence, Google’s Mesa data center had to redesign its cooling architecture to incorporate closed-loop systems, which raised initial CAPEX by nearly 15% but was required to meet sustainability criteria. In Oregon, pressure from environmental groups recently led to the suspension of a proposed data center project.
The surge in Disaster Recovery (DR) demand is creating new opportunities for data center construction in the U.S. Enterprises are no longer relying solely on a single hyperscale location for redundancy but are instead adopting multi-region disaster recovery architectures. This shift has triggered a notable uptick in construction across secondary and tertiary markets. For instance, Omaha has seen over 60MW of new data center capacity added between 2023 and 2025, especially from colocation providers offering DR-as-a-service (DRaaS) to financial and healthcare clients.
Cloud-native DR is another factor opening the door to lucrative growth avenues. With more enterprises migrating mission-critical workloads to hybrid environments, there is a rising demand for localized edge and micro data centers to serve as failover zones. Companies are investing in modular DR-ready builds in cities such as Little Rock. They are providing SLA-backed recovery times as low as four hours, which was not feasible with legacy architecture.
Based on infrastructure, the market is trifurcated into IT infrastructure, PD and cooling infrastructure, and miscellaneous infrastructure. Out of these, IT infrastructure is estimated to hold a share of nearly 82.3% in 2025 with the surging demand for AI workloads, high-density computing, and real-time data processing. The deployment of GPUs and specialized accelerators has made power and thermal efficiency significant, prompting a shift toward custom-built, high-performance IT environment. The transition from conventional storage to Non-Volatile Memory Express (NVMe) and software-defined infrastructure is also changing data center blueprints.
Power Distribution (PD) and cooling infrastructure is gaining momentum owing to the exponential rise in rack densities, driven by AI training clusters and High-Performance Computing (HPC) applications. As of 2024, average rack power densities in new hyperscale builds have surpassed 30 kW, with some AI-focused deployments exceeding 70 kW per rack. This has boosted the adoption of innovative cooling methods such as direct-to-chip data center liquid cooling and rear-door heat exchangers. The increasing complexity of power delivery is another key driver.
In terms of vertical, the market is divided into IT and telecom, BFSI, government and defense, healthcare, and energy. Among these, IT and telecom is expected to account for around 42.7% of the U.S. data center construction market share in 2025 amid their massive and continuously rising demand for data processing, storage, and network infrastructure. Telecom companies are rapidly upgrading their infrastructure to support 5G rollout, which requires ultra-low latency and distributed computing capabilities. It is further pushing edge data center construction near urban and suburban nodes.
BFSI is also projected to witness steady growth through 2032 due to its surging reliance on real-time digital services, regulatory compliance, and data sovereignty requirements. Banks and insurers are investing in dedicated and hybrid data center infrastructure to ensure low-latency processing and enhanced cybersecurity. Strict regulatory frameworks such as the Gramm-Leach-Bliley Act (GLBA), PCI DSS, and emerging state-level data protection laws push financial institutions to maintain robust onshore data centers. Several companies are hence opting for Tier IV facilities with novel disaster recovery features to meet these demands.
In the West, Northern California, conventionally a core market, is witnessing moderate growth due to power availability issues and regulatory bottlenecks. For instance, Silicon Valley Power announced in late 2023 that it had reached its load capacity for new large-scale data center connections, pushing developers to look elsewhere in the West. In contrast, Hillsboro, bolstered by abundant hydroelectric power and undersea cable landing points, saw more than 90 MW of data center capacity added in 2024 alone, mainly by NTT Global and QTS.
The city’s appeal lies in its renewable energy mix and lower latency to Asia Pacific routes. Similarly, Reno has emerged as a secondary hub owing to favorable tax incentives and proximity to the Bay Area. Google’s US$ 600 Mn expansion at its Storey County campus, announced in 2024, exemplifies this trend. Phoenix is also attracting attention, despite water usage concerns, with more than 300 MW under development as of Q1 2025. Companies, including STACK Infrastructure and Microsoft, are building desert-adapted, high-efficiency campuses with innovative cooling techniques to comply with environmental norms.
In the Southeast, Florida, North Carolina, and Georgia are seeing significant hyperscale and colocation developments. Atlanta has emerged as the Southeast's primary hub, pushed by expansions from key companies such as QTS and Amazon. This growth is further supported by ample fiber connectivity, competitive power and real estate costs, and proximity to important enterprise consumers. Secondary markets are also drawing attention.
The Charlotte-Raleigh corridor is gaining momentum due to its highly skilled technical workforce and supportive business incentives. Developers such as Digital Realty and RagingWire are initiating multi-campus projects, each targeting 30 to 50MW of capacity, catering to both cloud and edge deployments. Florida’s Jacksonville and Miami markets are scaling up primarily for edge and disaster recovery use cases. Jacksonville now boasts the most prominent concentration of colocation data centers in the region, with providers such as Iron Mountain and EdgeConneX collectively adding more than 60MW from 2023 to 2024.
The Midwest is emerging as a subtle, yet strategic growth frontier marked by rapid buildouts in secondary hubs and a shift toward sustainability-driven infrastructure. In Chicago and its greater metro, more than 150MW of capacity came online in 2024, led by expansions from Digital Realty and CyrusOne. This positioned the city as a key interconnection and enterprise hub. These additions support rising demand from financial services, insurance, and federal agencies seeking reliable Midwest redundancy.
Mid-sized markets such as Columbus, Ohio, and Cincinnati are attracting attention with low costs and favorable utility rates. In the recent past, NTT announced a new 20MW hyperscale-ready facility in Columbus, designed with on-site transformers and high-voltage delivery to support rack densities above 25kW. A more recent trend involves rural Northern Michigan and Minnesota. Developers there are leveraging abundant renewable energy, especially solar and wind, to debut green data center projects.
The U.S. data center construction market is characterized by the presence of hyperscale tech giants, specialized construction firms, and design-build contractors. Leading companies are securing large-scale projects from cloud providers such as Google Cloud and Amazon Web Services. They have long-standing relationships with hyperscalers, enabling them to win repeat contracts and maintain a stronghold over high-value builds. Emerging competition is visible in the form of regional players and modular data center builders who offer quick deployment times and localized support. A few companies are also focusing on sustainability, flexible design, and speed-to-market.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Value: US$ Bn/Mn, Volume: As Applicable |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
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The U.S. data center construction market is projected to reach US$ 67.0 Bn in 2025.
Local government incentives for tech infrastructure and shift toward renewable-powered data centers are the key market drivers.
The market is poised to witness a CAGR of 10.4% from 2025 to 2032.
Surging adoption of liquid cooling technology and the emergence of hybrid cloud models are the key market opportunities.
Acer Inc., ABB, and Dell Inc. are a few key market players.
