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The US Data Center Construction Market Investment to Reach $47.72 Billion by 2029 - the Investment to Double Up in the Next 6 Years - Arizton
[May 15, 2024]

The US Data Center Construction Market Investment to Reach $47.72 Billion by 2029 - the Investment to Double Up in the Next 6 Years - Arizton

CHICAGO, May 15, 2024 /PRNewswire/ -- According to Arizton's latest research report, the U.S. data center construction market is growing at a CAGR of 11.69% during 2023-2029. 

The U.S. Data Center Construction Market Research Report by Arizton

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Browse in-depth TOC on the US Data Center Construction Market   

57 – Tables????????
177 – Figures????
567 – Pages???? 

The US Data Center Construction Market Report Scope 

Report Attributes 


Market Size (2029) 

USD 47.72 Billion 

Market Size (2023) 

USD 24.59 billion 

CAGR (2023-2029) 

11.69 %

Historic Year 


Base Year 


Forecast Year 


Geographic Analysis 

Southeastern U.S., Midwestern U.S., Southwestern U.S., Western U.S., and Northeastern U.S.

Market Dynamics 

•  Significant Development of Data Center Facilities

•  Ongoing Investments by Hyperscale Operators in the U.S.

•  Rise in M&A and Joint Venture Activities

•  Tax and Sales Incentives a Major Boost for U.S. Data Center Construction Market

•  Increase in the Adoption of Cloud-Based Services and the Shift From On-Premises to Cloud Platforms

•  Enhanced Connectivity Driving Growth in the Data Center Market

•  Data Centers Becoming More Important Due to Big Data, the Internet of Things (IoT), Augmented Reality (AR) and Virtual Reality (VR)

The US data center construction market is witnessing robust growth, fueled by surging demand for data storage and processing capabilities. Major players across tech, real estate, and infrastructure sectors are investing significantly in building and upgrading data centers. This demand surge is propelled by ongoing digital transformation and expanding adoption of cloud and edge computing. With businesses increasingly relying on data centers to power technologies like 5G, IoT, and AI, investment in this sector is poised to escalate further.

Key hubs have emerged for data center development, with Northern Virginia leading the pack as the renowned "Data Center Alley," thanks to its proximity to Washington D.C., and superior connectivity. Silicon Valley retains its prominence due to its tech-focused ecosystem. Dallas-Fort Worth has emerged as a significant hub in the Southwest US, offering cost-effective solutions and strategic geographic positioning. Meanwhile, Chicago is a considerable data center hub, benefiting from its central location and robust network connectivity. These locations are expected to remain pivotal in driving the growth and expansion of the US data center construction market.

Market Segmentation Insight

Core & Shell Development to Contribute the Largest Market Share

The US data center construction market by core and shell development will reach over $9 billion by 2029.

The Northeastern region will likely witness a surge in brownfield projects due to location constraints. The cost of core & shell development increased in 2023 compared to 2022. Silicon Valley, New Jersey, and Chicago were the top locations where the cost was higher than other cities such as Northern Virginia, Phoenix, and Atlanta.

Air-based Cooling Techniques to Occupy the Major Share in the Market

The US data center construction market by air-based cooling will reach $3.60 billion by 2029.

Air cooling techniques have long been instrumental in data center cooling, including traditional Computer Room Air Conditioning (CRAC) units and free-cooling solutions. While liquid-based cooling solutions have been prevalent, free-cooling methods have gained traction recently, especially in the US market. Chilled water systems remain common, particularly in water-based cooling setups. There's a growing trend toward waterless cooling systems featuring indoor CRAC units, particularly among data centers utilizing free cooling chillers. Innovations focusing on using outside air for cooling, without onsite water requirements, are expected to drive market growth further.

Air-based cooling technologies are widely deployed and understood, forming the backbone of data center cooling strategies. Data center personnel are familiar with air cooling systems and adept at maintenance, benefiting from extensive industry experience. Maintaining these systems is streamlined due to established industrial practices, ensuring efficient and reliable cooling for data center equipment.

Boom in M&A & Joint Venture Activities Uplifting the Market Growth

The US data center market has experienced a significant surge in mergers and acquisitions (M&A) as well as joint ventures (JVs) in recent years. This growth in demand can largely be attributed to the expansion in cloud and edge computing as well as the increased reliance on digital infrastructure for data storage and processing capabilities.

  • In March 2023, Amazon acquired a former insulation factory in Santa Clara, California, by paying over $237 million. The factory is likely to be converted into a data center.
  • In May 2023, Gigapower, LLC, a joint venture between AT&T and BlackRock, was formed to offer fiber broadband services to internet service providers and businesses in various parts of the US.
  • American Real Estate Partners (AREP) and Harrison Street Real Estate formed a new joint venture (JV) of around $1 billion to develop and build a powered shell campus in Northern Virginia.

The Report Includes the Investment in the Following Areas: 

Facility Type

  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers


  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure

Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, & Dry Coolers
  • Economizer & Evaporative Coolers
  • Other Cooling Units

Cooling Techniques

  • Air-based Cooling
  • Liquid-based Cooling

General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/ BMS Solutions

Tier Standards

  • Tier I & II
  • Tier III
  • Tier IV


United States

  • Southeastern U.S.
    • Virginia
    • Georgia
    • Tennessee
    • Florida
    • Alabama
    • Other States
  • Midwestern U.S.
    • Ohio
    • Illinois
    • Nebraska
    • Missouri
    • Iowa
    • Other States
  • Southwestern U.S.
    • Texas
    • Arizona
    • Other States
  • Western U.S.
    • California
    • Nevada
    • Utah
    • Oregon
    • Other States
  • Northeastern U.S.
    • New Jersey
    • Pennsylvania
    • New York
    • Connecticut
    • Other States

Competitive Landscape

Key Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Legrand
  • Rolls-Royce
  • Schneider Electric
  • Vertiv

Key Data Center Contractors

  • Arup
  • Corgan
  • DPR Construction
  • Fortis Construction
  • Holder Construction
  • Jacobs
  • Rogers-O'Brien Construction
  • Syska Hennessy Group
  • Turner Construction

Key Data Center Investors

  • Apple
  • Amazon Web Services (AWS)
  • CyrusOne
  • DataBank
  • Digital Realty
  • Equinix
  • Google
  • Meta (Facebook)
  • Microsoft

Other Data Center Support Infrastructure Providers

  • Airedale
  • Alfa Laval
  • Asetek
  • Bloom Energy
  • Carrier
  • Condair
  • Cormant
  • Cyber Power Systems
  • Enlogic
  • FNT Software
  • Generac Power Systems
  • Green Revolution Cooling (GRC)
  • HITEC Power Protection
  • Johnson Controls
  • KyotoCooling
  • Mitsubishi Electric
  • Natron Energy
  • NetZoom
  • Nlyte Software
  • Rittal
  • Siemens
  • Trane (Ingersoll Rand)
  • Tripp Lite
  • Yanmar (HIMOINSA)
  • ZincFive

Other Data Center Contractors

  • AlfaTech
  • BlueScope Construction
  • Brasfield & Gorrie
  • CallisonRTKL
  • Clark Construction Group
  • Climatec
  • Clune Construction
  • EMCOR Group
  • Fitzpatrick Architects
  • Fluor Corporation
  • Gensler
  • Gilbane Building Company
  • HDR
  • HITT Contracting
  • Hoffman Construction
  • JE Dunn Construction
  • JHET Architects
  • kW Engineering
  • WSP (kW Mission Critical Engineering)
  • Linesight
  • M+W Group (Exyte)
  • Morrison Hershfield
  • Mortenson
  • Rosendin
  • Salute Mission Critical
  • Sheehan Nagle Hartray Architects
  • Skanska
  • Southland Industries
  • Sturgeon Electric Company
  • Structure Tone
  • The Mulhern Group
  • The Walsh Group
  • The Weitz Company
  • TRINITY Group Construction

Other Data Center Investors

  • Aligned Data Centers
  • American Tower
  • AUBix
  • CloudHQ
  • Cologix
  • Compass Datacenters
  • COPT Data Center Solutions
  • CoreSite
  • DartPoints
  • Edge Centres
  • EdgeConneX
  • EdgePresence
  • EdgeCore Digital Infrastructure
  • Element Critical
  • Evoque
  • Flexential
  • fifteenfortyseven Critical Systems Realty (1547)
  • H5 Data Centers
  • HostDime
  • Iron Mountain
  • Netrality Data Centers
  • Novva Data Centers
  • PowerHouse Data Centers
  • Prime Data Centers
  • QTS Realty Trust
  • Sabey Data Centers
  • Skybox Datacenters
  • Stream Data Centers
  • STACK Infrastructure
  • Switch
  • T5 Data Centers
  • TierPoint
  • Vantage Data Centers
  • Vapor IO
  • Yondr
  • 365 Data Centers

New Entrants

  • Corscale Data Centers
  • Crane Data Centers
  • Edged Energy
  • NE Edge
  • Quantum Loophole
  • Rowan Digital Infrastructure

The US Data Center Construction Market Report Encompasses Crucial Data, Including:?????????? 

CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the US data center construction market over the specified time frame.?????????? 

Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the US data center construction market growth from 2023 to 2029. This includes an analysis of various market influences.?????????? 

Precise estimation of market size: Accurate assessments of the US data center construction market size and its contribution and focusing on key market segments.?????????? 

Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the US data center construction market, helping businesses prepare for future market dynamics.?????????? 

Geographical market growth: The report covers the development of the data center construction market across the US.

Competitive landscape analysis: A thorough examination of the market's competitive landscape is presented, including detailed information about companies operating in the US data center construction market. This includes an overview of key players, their market share, strategies, and key developments.?????????? 

Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the US data center construction market, providing a well-rounded view of the market dynamics.????? 

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Key Questions Answered in the Report:

What are the key trends in the U.S. data center construction market?

What is the growth rate of the U.S. data center construction market?

How big is the U.S. data center construction market?

What is the estimated market size in terms of area in the U.S. data center construction market by 2029?

How many MW of power capacity is expected to reach the U.S. data center construction market by 2029?

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