The United States data center construction market is poised for significant growth, with projections indicating a rise from US$17.01 billion in 2024 to US$28.95 billion by 2033, representing a compound annual growth rate (CAGR) of 6.09%. This surge is driven by the escalating demand for cloud computing, digital transformation, and sophisticated facilities that support high-capacity, scalable, and energy-efficient IT infrastructure.
Geographically, the market is concentrated in key regions such as California, Texas, New York, and Florida. These areas benefit from strong digital infrastructure, high cloud adoption rates, energy availability, and government support for technology investments. The rapid expansion of cloud computing, big data analytics, and industry digitization is further fueling this growth. Businesses and government organizations are increasingly investing in state-of-the-art infrastructure to accommodate massive data traffic and cutting-edge technologies. The development of AI, machine learning, and the Internet of Things (IoT) is accelerating the need for scalable, efficient, and secure data center infrastructure.
Collaboration among engineering firms, technology companies, and construction firms is crucial in delivering innovative facilities that meet evolving demands. Energy efficiency and sustainability are key focuses in the U.S. market. Operators are integrating green building standards, innovative cooling systems, and renewable energy sources into their projects. Additionally, modular data center construction is gaining traction due to its flexibility, quick deployment, and cost savings. These advancements are positioning the market as a hub for creative infrastructure deployment and design.
Several key drivers are propelling the market forward. The growing demand for digital infrastructure across industries is a primary factor. Trends such as AI, machine learning, IoT, and 5G are driving exponential data growth, necessitating the expansion of data center capacities. Hyperscale cloud providers like Google Cloud, Microsoft Azure, and Amazon Web Services are constructing next-generation facilities with high power densities and effective cooling systems. For instance, a joint venture between OpenAI, SoftBank, and Oracle aims to invest $100 billion in AI infrastructure, potentially growing to $500 billion by the end of Trump’s second term. The Stargate project, part of this initiative, includes ten massive data centers totaling around 500,000 square feet, with one already under construction in Abilene, Texas.
The rise of edge computing is also fueling market expansion, as it increases the demand for decentralized data centers closer to end-users to improve performance and reduce latency. Government regulations, tax incentives, and renewable energy requirements are promoting sustainable and energy-efficient building practices. For example, the U.S.-based real estate company Related Companies launched a new data center development business in March 2025, aiming to deliver gigawatts of capacity across the U.S. and Canada.
The increasing dependency on cloud services and data consumption is creating a favorable outlook for the U.S. data center construction market. In 2023, U.S. wireless networks transmitted a record 100.1 trillion megabytes of data, an 89% increase since 2021, highlighting the critical role of data centers in managing digital information. The rapid growth of cloud computing services necessitates scalable and sophisticated data centers capable of handling enormous workloads. As more businesses migrate their workloads to the cloud, the demand for secure, large-capacity, and efficient data center facilities will continue to rise.
Sustainability and energy efficiency are becoming increasingly important in the U.S. data center construction industry. Operators are adopting green practices, such as using renewable energy and advanced cooling systems, to meet environmental concerns and governmental requirements. Simultaneously, IT firms are investing heavily in new facilities and expanding existing ones to meet growing infrastructure demands. The shift towards remote work is also impacting market dynamics. With 68% of tech workers working off-site and 22 million people, or 14% of the U.S. workforce, working entirely remotely, the need for scalable and robust data centers that support remote teams, real-time collaboration, and continuous digital operations is underscored.
The development of IoT, AI, and technological advancements is driving the demand for high-performance data centers. These technologies require robust computational infrastructure, low latency, and real-time data processing. Initiatives like the Stargate project, backed by OpenAI, SoftBank, and Oracle, reflect the increasing demand for hyperscale data center infrastructure to support smart devices, connected ecosystems, and intelligent applications. The widespread integration of 5G is further boosting data transmission speeds, driving the need for modern data center capacity.
However, the market faces challenges, including high capital investment and operational costs. Constructing modern data centers requires significant financial investment in land, construction materials, cooling systems, and security measures. Operational costs for staffing, maintenance, and electricity