NORTH AMERICAN DATA CENTER CONSTRUCTION MARKET

North American data center construction market size was valued at USD 100.6 billion in 2024 and is forecast to touch USD 187.6 billion in 2032 and the market is expected to grow at a CAGR of 8.1% from 2025-2032 propelled by the surging cloud computing adoption along with ongoing efforts to improve energy efficiency and the increasing development of hyperscale data center infrastructure.

Major Market Drivers and Emerging Trends

The rising cloud computing adoption is a major driver behind the increased demand for data center construction. The rapid cloud services adoption for data storage and app hosting is creating a growing demand for solid infrastructure. With around 60% of business operations transitioning to cloud and data generation on the rise, there is a growing need for greater data center capacity. The ongoing transition underscores the necessity for sophisticated data center systems amid ongoing construction of modern facilities. Leading tech giants like Google Cloud are scaling up their data center infrastructure to manage the growing data volume fueled by widespread digital transformation.

The other factor supporting the North America data center construction market is the growing hyperscale data center. These data centers are large scale facilities built to meet the extensive infrastructure demands of major cloud providers and enterprises handling massive data workloads. The facilities are designed for scalable computing which enables them to support the surging need for cloud services along with digital content storage. The growing shift toward hyperscale facilities is reshaping market dynamics which drives advancements in modular construction and cooling systems essential for large scale deployments.

Additionally edge data center expansion is gaining momentum across North America driven by the increasing need for real time data processing and minimal latency. The rising IoT and connected technologies is fueling the need for localized data centers that can provide low latency processing along with reliable performance near end users. These facilities improve application performance by delivering localized computing power which is crucial for services that demand rapid data retrieval and minimal latency.

Furthermore the move toward sustainable construction is among the most impactful trends currently influencing the data center industry. Organizations are actively embracing green construction methods to boost energy efficiency and lower their carbon emissions. That includes integrating renewable energy and implementing efficient cooling systems while adopting innovative building designs which reduce overall energy usage. Rising electricity costs are becoming a serious issue for data centers which depend heavily on energy to support servers and maintain optimal temperatures. Although operators are embracing clean energy sources and energy saving technologies but finding the ideal balance between reliability and efficiency remains a costly undertaking.

Data centers that are energy efficient are becoming more in demand as environmental rules become more stringent. There is a growing trend toward integrating clean energy solutions and green building materials in modern data center developments. To improve operational efficiency and achieve sustainability targets, companies are implementing advanced solutions like liquid cooling along with efficient lighting systems.

The US leads the North American data center construction market driven by the growing demand for advanced IoT applications that require robust infrastructure. The US continues to be a global technology leader driven by its strong digital economy along with major tech firms which includes cloud providers or financial services firms. These companies require expansive data centers with high capacity to power their vast operations which leads to significant investments in data center development. The United States enjoys an advanced infrastructure featuring developed telecommunications and dependable power grids that are essential for sustaining expansive data center operations. The need for robust data centers is being further amplified by the accelerating need for cloud computing along with big data insights. The market in Canada is also experiencing strong growth supported by significant project developments from leading industry players.

However the rising energy costs represent a major hurdle for market growth. The rising need for data storage and processing contributes to a greater energy consumption which in turn escalates operational expenses. Environmental compliance is also becoming a growing challenge for data center builders driven by tighter regulations. Authorities are introducing tougher regulations aimed at improving energy efficiency in data center operations. To comply with these regulations companies must invest heavily in sustainable technologies like efficient cooling solutions and clean energy.

Based on tier type, Tier III dominates the market driven by the increasing need for redundant components to support critical operations particularly among major corporations that demand high availability and robust infrastructure. The Tier IV data center segment is also growing fueled by increasing demand for continuous operations and zero downtime especially within the healthcare or government sectors. Tier IV facilities feature full redundancy in power and cooling systems which guarantee maximum uptime along with robust disaster recovery capabilities that are ideal for highly sensitive or critical workloads.

Based on vertical, the IT & Telecom sector leads the market driven by its heavy reliance on data centers to manage vast data volumes generated by widespread internet usage and high mobile penetration. Leading tech giants like Amazon and Microsoft are increasing data center capacities to support the surging digital platform adoption. The healthcare sector is also projected to generate significant demand for data center construction. This demand is fueled by the surging digital data resulting from technological advancements along with government initiatives promoting Electronic Health Records. It is also supported by the IoT and smart devices adoption in the healthcare industry. The growing reliance on advanced healthcare technologies is driving an increased need for dedicated data centers that can efficiently manage sensitive health information which further propels market growth.

Top Market Players

Some major players in the market are Google LLC, Microsoft Corporation, Amazon Web Services, Equinix among others.

Key Developments

• • In 2024, a new 200 MW data center is set to be developed by Crusoe Energy Systems at the Lancium Clean Campus in Texas. The major investment marks a significant growth in its data center capacity which utilizes advanced technology and a strong focus on sustainability.

Segments covered in the Report:

The North American Data Center Construction Market has been segmented on the basis of tier type, infrastructure and vertical. Based on the tier type, the market is segmented into tier 1, tier 2, tier 3, tier 4. Based on the infrastructure, the market is segmented into cooling infrastructure, power infrastructure, racks and cabinets, servers, networking equipment, physical security infrastructure, design and consulting services, other infrastructure. The cooling infrastructure segment is further segmented into air-based cooling, liquid-based cooling, evaporative cooling. The power infrastructure segment is further segmented into ups systems, generators, power distribution unit (PDU). Based on the vertical, the market is segmented into it & telecom, BFSI, government & defense, healthcare, energy, others.

Market Segmentation

North American Data Center Construction Market by Tier Type

• • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

North American Data Center Construction Market by Infrastructure

• • Cooling Infrastructure
    • Air-based cooling
    • Liquid-based cooling
    • Evaporative cooling
  • Power Infrastructure
    • UPS Systems
    • Generators
    • Power Distribution Unit (PDU)
  • Racks and Cabinets
  • Servers
  • Networking Equipment
  • Physical Security Infrastructure
  • Design and Consulting Services
  • Other Infrastructure

North American Data Center Construction Market by Vertical

• • IT & Telecom
  • BFSI
  • Government & Defense
  • Healthcare
  • Energy
  • Others

North American Data Center Construction Market Leading players

• • Google LLC
  • Microsoft Corporation
  • Amazon Web Services
  • Equinix