The United States Data Center Construction Market is entering an unprecedented phase of expansion, powered by the rapid shift toward cloud computing, artificial intelligence, IoT, and digital-first business operations. According to Renub Research, the market is projected to reach US$ 28.95 billion by 2033, rising from US$ 17.01 billion in 2024, at a CAGR of 6.09% during 2025–2033. As enterprises, hyperscalers, and governments accelerate investments in high-capacity digital infrastructure, the U.S. continues to dominate global data center construction with its technology clusters, advanced engineering expertise, and strong ecosystem of cloud service providers.
Today, data centers form the foundation of digital America—enabling everything from smart cities and 5G networks to AI-powered applications and real-time financial systems. This decade marks a historical transition: the U.S. is no longer just adopting digital systems—it’s building a massive, AI-driven infrastructure layer that will define global competitiveness for years to come.
United States Data Center Construction Industry Overview
The U.S. data center construction market is being reshaped by surging cloud demand, big data integration, remote work proliferation, and the explosive development of AI and machine learning. Companies across every industry—finance, healthcare, government, retail, and manufacturing—are pushing to expand digital capacity, prompting hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud to invest in larger, more energy-efficient infrastructure.
The growing need for low-latency processing, high-density servers, and hyper-scalable environments has intensified collaboration between technology firms, engineering companies, construction giants, and energy solution providers. Modern data centers are now built with:
High-performance computing (HPC) capabilities
Renewable-powered systems
Liquid and free-air cooling
Modular and prefabricated designs
AI-driven energy management
Sustainability is becoming a defining feature. Operators increasingly adopt green building standards, solar and wind energy, and innovative cooling methods to comply with environmental benchmarks and control rising energy costs.
The rise of modular data centers—which allow quicker deployment and reduced on-site labor—is transforming how enterprises expand capacity, particularly in remote and edge locations.
Key Factors Driving Market Growth
1. Explosive Cloud Dependency & Surging Data Consumption
The U.S. is witnessing record-breaking data usage. According to the CTIA Wireless Industry Survey (2024), wireless networks processed 100.1 trillion MB of data in 2023, up 89% since 2021. This exponential rise demands more storage, computing power, and secure data routing—directly intensifying data center construction across the country.
The transition to hybrid and multi-cloud environments among enterprises is another major catalyst. As businesses migrate mission-critical workloads to the cloud, they require:
Advanced colocation facilities
Scalable cloud data centers
Secure, high-capacity server farms
This demand will continue to climb as cloud-native applications dominate every sector.
2. Industry Investments, Remote Work Surge & Sustainability Push
The U.S. is experiencing a wave of remote and hybrid work adoption. Approximately:
22 million Americans now work remotely full-time
68% of tech workers operate off-site
This demands resilient cloud infrastructure and real-time collaboration systems.
Meanwhile, sustainability is shaping construction strategies. Data center operators increasingly adopt renewable energy solutions, precision cooling, and carbon-reduction technologies. Federal and state-level incentives encourage:
Energy-efficient facilities
Reduced-emission equipment
Water-efficient cooling
Renewable-powered systems
This shift is accelerating investment in future-ready, sustainable data centers.
3. The Rise of AI, IoT, Machine Learning & 5G Connectivity
Perhaps the greatest growth driver is the U.S. race to dominate artificial intelligence infrastructure. AI demands enormous computing power. This reality has triggered some of the largest investments in digital infrastructure in American history.
In January 2025, OpenAI, Oracle, and SoftBank announced an AI megaproject called Stargate—a US$100 billion venture (potentially expanding to US$500 billion) to build 10 next-generation data centers across the U.S. Each will span 500,000 sq ft, purpose-built for AI workloads.
Additionally:
The explosion of IoT devices
National 5G expansion
Growth of edge computing
…require real-time processing hubs closer to end users. This is pushing companies to build decentralized micro-data centers nationwide.
Challenges Facing the U.S. Data Center Construction Market
1. High Capital & Operational Costs
Data center construction is capital-intensive. Modern facilities include:
Sophisticated cooling
Power distribution units
Cyber-secure environments
Redundant power systems
Fire suppression and monitoring systems
Combined with high energy consumption and skilled labor shortages, operational expenses also rise. Smaller companies struggle to compete with hyperscalers who command large financing and low-cost power agreements.
2. Complex Regulatory & Compliance Frameworks
Data center developers must navigate:
State renewable mandates
Federal cybersecurity standards
Zoning and land-use regulations
Environmental impact assessments
States like California impose some of the strictest energy-efficiency standards. Permitting delays and compliance costs can significantly extend project timelines. Ensuring privacy and infrastructure security requires substantial investments, adding to the financial burden.
United States Data Center Construction Market Overview by States
California
California remains the U.S. epicenter for data center construction thanks to:
Silicon Valley’s technology ecosystem
Strong connectivity infrastructure
High concentration of hyperscale cloud providers
The state incentivizes sustainable practices, including renewable energy usage and energy-efficient cooling. However, challenges such as high land prices, energy constraints, and strict regulatory rules slow down expansion. Yet, innovation in modular construction and cooling methods keeps California at the forefront of digital infrastructure development.
Texas
Texas is one of the fastest-growing hubs due to:
Business-friendly tax policies
Affordable land
Strong energy availability
Central U.S. connectivity
Dallas-Fort Worth, Houston, and Austin lead expansion. While grid reliability and extreme weather events pose concerns, renewable-integrated designs and government-backed technology investments continue fueling growth. Texas is emerging as a preferred destination for hyperscale deployments.
New York
New York’s dominance as a global financial center fuels high demand for secure, high-capacity data centers. Enterprises in finance, media, and professional services require resilient digital infrastructure and low-latency connectivity.
Challenges include:
High real estate costs
Regulatory complexity
Energy constraints
Despite these factors, New York remains a crucial strategic location due to its East Coast connectivity and its role in global financial systems.
Florida
Florida is rapidly becoming a major player due to:
Strategic position connecting Latin America
Rising digital adoption
Attractive tax incentives
Miami and Orlando lead new investments. However, hurricane exposure and humidity create design challenges—leading to innovations in disaster-resilient infrastructure and robust backup systems. With growing enterprise demand and strong regional connectivity, Florida’s role continues to expand.
Recent Developments in the U.S. Data Center Construction Market
June 2025 – Sika launched next-gen construction solutions aimed at supporting a global investment pipeline of CHF 400 billion by 2028, focusing on sustainability, cooling efficiency, and high-performance infrastructure.
June 2025 – Amazon announced a US$10 billion expansion of its North Carolina data center campus as part of a larger US$100 billion AI-focused capital plan, adding 20 buildings and 500 jobs.
January 2025 – EDGNEX Data Centers by DAMAC unveiled a US$20 billion expansion targeting 2,000MW capacity across the U.S., particularly to support hyperscalers and AI-driven applications.
Market Segmentations
By Tier Type
Tier 1
Tier 2
Tier 3
Tier 4
By Infrastructure
IT Infrastructure
Miscellaneous Infrastructure
Power, Distribution & Cooling (PD&C)
By Vertical
IT & Telecom
BFSI
Healthcare
Government & Defense
Energy
Others
By States
All major U.S. states covered, including:
California, Texas, New York, Florida, Illinois, Ohio, Pennsylvania, Georgia, North Carolina, Virginia, Washington, New Jersey, and others.
Key Players Covered
AECOM
Whiting-Turner Contracting Company
Turner Construction Co.
Jacobs Solutions Inc.
DPR Construction
Skanska USA
Balfour Beatty US
Hensel Phelps
Company Overview & SWOT Insights (Summary)
AECOM
Strengths: Global engineering expertise, large-scale project execution
Weaknesses: High project costs
Opportunities: Growing hyperscale and green construction demand
Threats: Rising competition from modular solution providers
Jacobs Solutions Inc.
Strengths: Strong technology consulting and engineering integration
Opportunities: AI and HPC-focused facility design
Threats: Complex regulatory pressures in key states
DPR Construction
Strengths: Leader in modular data center buildouts
Opportunities: Expansion in Texas and Virginia
Threats: Supply chain volatility
Turner Construction
Strengths: Strong project portfolio and innovation in cooling systems
Opportunities: Increasing investment from public and private cloud operators
Final Thoughts
The United States is entering a transformative era in data center infrastructure. With AI, IoT, 5G, and cloud computing defining the future of business and government operations, the nation is witnessing one of the largest construction booms in digital infrastructure history. Backed by billions in public and private investments, ambitious hyperscale expansions, and a strong push toward sustainable design, the U.S. data center construction market will play a pivotal role in shaping the global digital economy through 2033.
As enterprises chase computational power and low-latency environments, and as AI demands modernized, energy-efficient facilities, the U.S. stands at the forefront of next-generation digital transformation—building the backbone of the technologically advanced economy that lies ahead.