Data Centre Construction Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Hyperscale, Colocation/ Multi-Tenant, Edge/ Micro, Others), Construction Type (New Construction, Expansion & Renovation), Data Centre Tier (Tier I, Tier II, Tier III, Tier IV), By End User (IT & Telecommunication, Government, Healthcare, Energy, BSI, and Others), and Region Forecast 2020-2031

Data Centre Construction Market was valued at US$ 387.0 billion in 2024 and is projected to reach US$ 1,088 billion by 2031 at a CAGR of 16.0 %. Moreover, the U.S. market is projected to grow significantly, reaching an estimated value of US$ 468 Billion by 2031. The market for data centre construction is experiencing a structural change with increased digital demand, growth in the cloud, and the adoption of edge computing in all major industries. As businesses become data businesses, there is an urgent need for facilities that are not just scalable but efficient in power consumption, secure, and high-performance computing enabled. Trends in construction are converging increasingly with modular builds, prefabrication technology, and sustainable infrastructure, facilitating quicker rollouts and reduced opex. hyperscale’s, telcos, and even governments are reshaping the development landscape, making purpose-built infrastructure investments to host AI workloads, IoT ecosystems, and latency-tolerant applications that include proximity to end-users.

The industry is being reshaped through a convergence of real estate, electrical engineering, and cloud-native architecture. Tier III and Tier IV data centres are witnessing the greatest traction, especially in areas with healthy energy availability and optimal connectivity. At the same time, regulatory concerns regarding data sovereignty as well as carbon footprint are shaping site selection, design standards, and cooling technology selection. As the demand is becoming more local but still globalized, the story of construction is now not about capacity, it's about being agile, speed-to-market, and sustainable.

Key Developments

• In May 2025, Meta invested nearly $1 billion in May 2025 for building a new data centre in Wisconsin, after a state-approved incentive pact with a multiperiod $837 billion investment.
• In May 2025, NTT Global Data Centres purchased 173 acres in Mesa, Arizona, for new data halls, a warehouse, and corporate offices, again making the area a hyperscale development hub.
• In April 2025, ODATA, an Aligned Data Centers company and a leading data center developer in Latin America, announced the launch of the first facility at its DC QR03 campus the company’s largest data center project in Mexico. Situated in the PyME Industrial Park in Querétaro, the new campus represents a total investment exceeding US$ 3 billion and is expected to deliver up to 300 megawatts (MW) of IT capacity once fully developed.
• In February 2025, Sify Infinit Spaces, a subsidiary of Sify Technologies, broke ground on a new data center in Lucknow, India. The facility, located within the HCL IT City campus on Sultanpur Road, will be developed in four phases, with Phase I scheduled to become operational by June 2025. While specific technical details have not been disclosed, the site is believed to be part of Sify’s broader strategy to establish Edge AI inference facilities across 20 secondary markets throughout India.
• In October 2024, tal, a global provider of end-to-end digital infrastructure solutions and owner of Brazil’s largest neutral fiber optic network, unveiled Tecto Data Centers as the new brand for its data center business unit. This rebranding follows the strategic separation of its data center operations from its FTTH (Fiber to the Home) and Wholesale network businesses, allowing for a more focused and long-term approach. The announcement also aligns with the company’s initial investment plan of US$ 1 billion. The brand launch coincided with a symbolic event marking the start of construction on its large-scale data center project, Mega Lobster, in Fortaleza.
• In January 2024, Digital Realty, the world’s largest provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced the launch of its first data center in India. Located on a 10-acre campus in Chennai’s industrial and manufacturing hub, the facility is designed to support up to 100 megawatts of critical IT load capacity. This development marks a significant milestone in the expansion of Digital Realty’s global data center platform, aligning with its strategy to support digital transformation in key emerging markets worldwide.

Data Centre Construction Market Segmentation

Based on the type

• Hyperscale
• Colocation/ multi-tenant
• Edge/ Micro
• Others

Colocation/multi-tenant data centers hold the largest market share due to their cost-efficiency, scalability, and faster deployment compared to building dedicated facilities. These centers offer flexible leasing models, advanced physical and cybersecurity, and support for high-density computing making them highly attractive for enterprises undergoing digital transformation. The rising adoption of hybrid and multiload strategies, along with increasing demand from cloud service providers, further accelerates their growth. Additionally, their global presence ensures compliance with data sovereignty regulations and provides low-latency access across regions, making them a preferred choice across industries like finance, healthcare, and IT.

Based on the construction type

• New Construction
• Expansion & Renovation

New construction remains the dominant activity in the data centre market, particularly in under-served regions and greenfield sites where purpose-built facilities are essential. It offers developers full control over design and architecture, enabling seamless integration of cutting-edge energy technologies, high-density server racks, and advanced cooling systems advantages that retrofitting or renovation projects often lack. With rising demand for customized infrastructure, from hyperscale deployments to modular edge setups, many operators prefer ground-up construction to future-proof their facilities against rapidly evolving technology standards. Moreover, both governments and private sectors are increasingly investing in new builds to support digital hubs and smart city initiatives. This approach also aligns well with sustainability goals, allowing for optimized design that supports lower Power Usage Effectiveness (PUE) and green certifications such as LEED from the outset.

Based on the data tier

• Tier I
• Tier II
• Tier III
• Tier IV

Tier III facilities have emerged as the preferred standard for enterprise and cloud-based data center construction, striking an ideal balance between high availability and cost efficiency. Offering 99.982% uptime, Tier III data centers support mission-critical operations at a lower cost and complexity than Tier IV, making them highly attractive for businesses seeking reliable performance without over-engineering. These facilities are built with redundant power and cooling paths, allowing for planned maintenance without service disruption—an essential feature for sectors where downtime is unacceptable but full Tier IV-level resilience isn't necessary. As cloud adoption accelerates and industries like finance increasingly prioritize secure uptime, Tier III’s flexibility makes it a top choice for colocation providers and regional operators in rapidly growing markets.

Based on the end user

• IT & Telecommunication
• Government
• Healthcare
• Energy
• BFSI
• Others

The IT and telecommunications sector serves as the foundational end-user segment in data center construction, accounting for a substantial share of global capacity expansion. With the rapid rise of digital platforms and 5G networks, telecom operators and IT service providers require robust infrastructure to support data-heavy applications such as video streaming, real-time gaming, and enterprise cloud solutions. This demand is driving the development of low-latency, high-bandwidth facilities strategically located near end-user hubs. Additionally, telecom companies are increasingly partnering with hyperscale and neutral-host providers to develop shared infrastructure balancing asset efficiency with competitive differentiation. The growth of this segment reflects the broader convergence of connectivity, content delivery, and scalable cloud computing.