Report

The U.S. data center construction market size by investment is expected to grow at a CAGR of 10.70% from 2025 to 2031.

U.S. DATA CENTER CONSTRUCTION MARKET KEY TRENDS

AI Transforming the Landscape of the Data Center Market

The AI industry is set to increase the size of hyperscale data centers significantly. Even though current AI investments haven't fully offset the growth in hyperscale data centers, the capacity of these data centers, especially for AI workloads, is expected to almost triple over the next five to six years. With the rising adoption of AI across several industries, new data centers are being designed to support high-density AI-based workloads.
With the rise in the development of AI-optimized data center facilities, the adoption of GPUs in data centers is significantly increasing in the market. AI-based data centers utilize GPUs as they can perform massively parallel computations, train and run AI models dramatically faster, use power more efficiently for each AI task, support real-time AI inference, and enable high-density, scalable facilities.
In October 2025, Lambda, the Superintelligence Cloud, is setting up a next-generation AI Factory in Kansas City, Missouri, converting a vacant facility (built in 2009) into a cutting-edge AI data center. The site will be powered by over 10,000 NVIDIA Blackwell Ultra GPUs, with plans to expand its capacity in later phases.

Advance Cooling Solutions for AI/ML Workloads

There is a growing emphasis on sustainable and innovative technologies for data centers. As computing power demands and performance expectations rise, driven by advancements in Artificial Intelligence (AI), the Internet of Things (IoT), and Machine Learning (ML), the need for power usage will increase, resulting in higher temperatures within IT infrastructure. These cutting-edge cooling solutions are essential for ensuring performance, reliability, and reduced energy and water consumption, which are critical as AI and ML become the primary drivers of computing demand.
The market is observing an increasing number of partnerships among data center operators, cooling technology vendors, chip manufacturers, and energy innovators. These collaborations are becoming essential for developing sustainable AI infrastructure. They facilitate the adoption of liquid cooling, hybrid thermal systems, and energy-efficient designs that support high-density computing while managing energy consumption and minimizing environmental impact. This is crucial for meeting the competitive demands and regulatory standards of modern data centers in the US.
For instance, in November 2025, Switch and Schneider Electric signed an expanded $1.9 billion agreement, marking the largest data center cooling contract in North America. Under the supply capacity deal, Schneider Electric will provide prefabricated power modules and its Uniflair chiller systems for Switch's facilities, with the chillers set to be used in the US for the first time.

SEGMENTATION INSIGHTS

- The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment. Some of these innovations include HVO fuel for generator sets, which reduces emissions as a measure to curb emissions.
- Additionally, several innovative UPS batteries, such as Nickel-Zinc (NiZn) and Sodium-Ion batteries, are gaining traction in the market due to their high power density, safety, sustainability, and other factors.
- Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. Companies like Equinix, Digital Realty, Aligned Data Centers, Microsoft, Meta and CyrusOne are leading the way by offering scalable and energy-efficient solutions that can support the increasing demands of high-performance computing.

U.S. DATA CENTER CONSTRUCTION MARKET REGIONAL ANALYSIS

- In the US data center construction market, the Southeastern U.S. is expected to be the largest market in 2031 in terms of power capacity, with a share of around 32% in 2031, followed by the Midwestern U.S.
- In Southeastern U.S., the market remains strong with a sizable pipeline of upcoming projects, driven by expansion in major hubs as well as the rise of new clusters in nearby areas. In the first nine months of 2025 alone, filings were submitted for 54 new data centers in Virginia.
- The Southwestern U.S. includes states such as Texas, Arizona, New Mexico, and Oklahoma. Among these four states, Texas and Arizona contribute to over 90% of the data center investments. Texas and Arizona witness investments by colocation operators and hyperscale self-built facilities.
- Northeastern U.S. is a developing data center market. The demand for data centers in the New York-New Jersey market remains high. This has driven down vacancies to less than 6%. The expansion of the New York-New Jersey data center market can be attributed to the ongoing demand for data center space, thereby serving as a connectivity hub in the heart of New York City's financial center.
- The U.S. data center construction market is projected to experience substantial growth in the Western U.S. Meta is building an $800 million data center in Cheyenne, Wyoming, on a site of about 960 acres in the High Plains Business Park. The planned facility is spread across an area of 715,000 square feet and is optimized for AI workloads. Fortis Construction is the lead builder of the campus.

UNITED STATES DATA CENTER CONSTRUCTION MARKET - VENDOR INSIGHTS

- The U.S. data center construction market has the presence of key investors such as Apple, Applied Digital, AWS, CyrusOne, DataBank, Digital Realty, Equinix, Google, Meta, Microsoft, NTT DATA, Vantage Data Centers, STACK Infrastructure, QTS and others.
- The market has a presence of several other investors, such as Aligned Data Centers, American Tower, Aubix, Centersquare, CloudHQ, Cologix, Compass Datacenters, COPT Data Center Solutions, Core Scientific, Crusoe, DartPoints, DC BLOX, DigiPowerX (DigiHost), EdgeConneX, EdgeCore Digital Infrastructure, Element Critical, FifteenFortySeven Critical Systems Realty (1547), Flexential, H5 Data Centers, HostDime, Hut 8, Iron Mountain, Netrality Data Centers, Novva Data Centers, PhoenixNAP, PowerHouse Data Centers, Prime Data Centers, Sabey Data Centers, Skybox Datacenters, Stream Data Centers, Switch, T5 Data Centers, TierPoint, WhiteFiber, Yondr, 365 Data Centers, 5C Data Centers and others.
- New Entrants include Ada Infrastructure, Ardent Data Centers, Beale Infrastructure, Big Sky Digital Infrastructure, CleanArc Data Centers, CloudBurst Data Centers, Colovore, Crane Data Centers, Edged Energy, Fleet Data Centers, Lambda, LightHouse Data Centers, Metroblocks, NE Edge, Penzance, Prometheus Hyperscale, Quantum Loophole, RadiusDC, Related Digital, Rowan Digital Infrastructure, Sailfish Investors, Tract and several others.
- AWS is set to develop two data centers in Madison County, Mississippi, with a total investment of $10 billion. The project, expected to generate around 1,000 construction jobs, is scheduled for completion by 2027.

The report includes the investment in the following areas:

- Facility Type
o Hyperscale Data Centers
o Colocation Data Centers
o Enterprise Data Centers
- Infrastructure
o Electrical Infrastructure
o Mechanical Infrastructure
o General Construction
- Electrical Infrastructure
o UPS Systems
o Generators
o Transfer Switches & Switchgears
o PDUs
o Other Electrical Infrastructure
- Mechanical Infrastructure
o Cooling Systems
o Racks
o Other Mechanical Infrastructure
- Cooling System
o CRAC & CRAH Units
o Chillers Units
o Cooling Towers, Condensers, and Dry Coolers
o Other Cooling Units
- Cooling Techniques
o Air-based Cooling Technique
o Liquid-based Cooling Technique
- General Construction
o Core & Shell Development
o Installation & Commissioning Services
o Engineering & Building Design
o Fire Detection & Suppression
o Physical Security
o DCIM/BMS Solutions
- Tier Standards
o Tier I & Tier II
o Tier III
o Tier IV
- Geography
o Southeastern U.S.
o Midwestern U.S.
o Southwestern U.S.
o Western U.S.
o Northeastern U.S.

Key Data Center Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Delta Electronics
- Eaton
- Legrand
- Rolls-Royce
- Schneider Electric
- STULZ
- Vertiv

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)
- HIMOINSA (Yanmar)
- HITEC Power Protection
- Johnson Controls
- KOHLER (Rehlko)
- KyotoCooling
- Mitsubishi Electric
- Natron Energy
- NetZoom
- Nlyte Software
- Rittal
- Siemens
- Trane
- ZincFive

Key Data Center Construction Contractors
- AECOM
- Ames Construction
- Arup
- Barge Design Solutions
- Burns & McDonnell
- Corgan
- DPR Construction
- Fortis Construction
- Haydon
- Holder Construction
- Jacobs
- KDC
- Kiewit Corporation
- Lewis Michael Consultants
- Morgan Construction
- Morgan Corp
- Page
- Rogers-O'Brien Construction
- Rosendin Electric
- Syska Hennessy Group
- Turner Construction

Other Data Center Construction Contractors
- AlfaTech
- Aplena
- Black & Veatch
- BlueScope Construction
- Brasfield & Gorrie
- CallisonRTKL
- Clark Construction Group
- Clayco
- Climatec
- Clune Construction
- EMCOR Group
- EYP MCF
- Fitzpatrick Architects
- Fluor Corporation
- Gensler
- Gilbane Building Company
- Gray
- HDR
- Hensel Phelps
- HITT Contracting
- Hoffman Construction
- JE Dunn Construction
- JHET Architects,
- JTM Construction Group
- kW Engineering
- Linesight
- M+W Group (Exyte)
- McCarthy Building Companies
- Morrison Hershfield
- Mortenson
- Pepper Construction
- Rosendin
- Ryan Companies
- Salute Mission Critical
- Sheehan Nagle Hartray Architects
- Skanska
- Southland Industries
- STO Building Group
- Sturgeon Electric Company
- Suffolk Construction
- Sundt Construction
- The Mulhern Group
- The Walsh Group
- The Weitz Company
- The Whiting-Turner Contracting Co.
- TRINITY Group Construction
- Walbridge
- WSP

Key Data Center Investors
- Apple
- Applied Digital
- AWS
- CyrusOne
- DataBank
- Digital Realty
- Equinix
- Google
- Meta
- Microsoft
- NTT DATA
- Vantage Data Centers

Other Data Center Investors
- AAIM Data Centers
- Aligned Data Centers
- American Tower
- Aubix
- Centersquare
- CloudHQ
- Cologix
- Compass Datacenters
- COPT Data Center Solutions
- Core Scientific
- Centra
- Crusoe
- DartPoints
- DC BLOX
- DigiPowerX (DigiHost)
- EdgeConneX
- EdgeCore Digital Infrastructure
- Element Critical
- FifteenFortySeven Critical Systems Realty (1547)
- Flexential
- H5 Data Centers
- HostDime
- Hut 8
- Iron Mountain
- Netrality Data Centers
- Novva Data Centers
- PhoenixNAP
- PowerHouse Data Centers
- Prime Data Centers
- QTS Realty Trust
- Sabey Data Centers
- Skybox Datacenters
- STACK Infrastructure
- Stream Data Centers
- Switch
- T5 Data Centers
- TierPoint
- WhiteFiber
- Yondr
- 365 Data Centers
- 5C Data Centers

New Entrants
- Ada Infrastructure
- Ardent Data Centers
- Beale infrastructure
- Big Sky Digital Infrastructure
- CleanArc Data Centers
- CloudBurst Data Centers,
- Colovore
- Crane Data Centers
- Edged Energy
- Fleet Data centers
- Lambda
- LightHouse Data Centers
- Metroblocks
- NE Edge
- Penzance
- Prometheus Hyperscale
- Quantum Loophole
- RadiusDC
- Related digital
- Rowan Digital Infrastructure
- Sailfish Investors
- Tract

KEY QUESTIONS ANSWERED:

1. How big is the U.S. data center construction market?
2. What is the estimated market size in terms of area in the U.S. data center construction market by 2031?
3. What is the growth rate of the U.S. data center construction market?
4. What are the key trends in the U.S. data center construction market?
5. How many MW of power capacity is expected to reach the U.S. data center construction market by 2031?