US Data Center Construction Market Size

US Data Center Construction Market Analysis

The United States Data Center Construction Market size is expected to grow from USD 23.29 billion in 2023 to USD 30.79 billion by 2028, at a CAGR of 5.74% during the forecast period (2023-2028).

• Data center construction is a very complex task requiring extensive planning of electrical, location, and mechanical requirements. Moreover, the data centers carry out mission tasks. Any imperfection in power management to building design could be catastrophic and result in increased company costs.
• The United States data center construction market is a rapidly growing industry driven by the increasing demand for data storage and processing capabilities. The growth of cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and other emerging technologies have led to an exponential increase in data generation, storage, and processing needs, which, in turn, has resulted in a surge in the construction of data centers in the United States.
• The growing adoption of cloud applications, artificial intelligence (AI), and big data is driving the demand for data center construction. As more businesses and organizations shift their operations to the cloud, they require larger and more advanced data centers to support their needs.
• The rising adoption of hyperscale data centers is a significant driver of the data center construction market. Hyperscale data centers are large-scale facilities designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
• The increase in real estate costs is one of the key factors restraining the growth of the data center market. As the demand for data centers continues to rise, the cost of acquiring and developing land for data center construction has also increased significantly.
• The COVID-19 pandemic led to a disruption in the supply chain for the construction of data centers. The lockdowns delayed the completion of projects and caused a decline in demand from severely hit industries, such as hospitality, entertainment, and construction activities. The surge on the internet and cloud adoption increased significantly during the spread of COVID-19 with a shift to the remote working environment and a focus on digitization by government authorities. Such factors are propelling the demand for increasing data center capacities in most regions across the globe.