North America Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 22.40 Billion |
| Market Size (2030) | USD 34.60 Billion |
| CAGR (2024 - 2030) | 6.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Data Center Construction Market Analysis
The North America Data Center Construction Market size is estimated at USD 22.40 billion in 2024, and is expected to reach USD 34.60 billion by 2030, growing at a CAGR of 6.20% during the forecast period (2024-2030).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the North American data center market is expected to reach above 25,000 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 85 million sq. ft. by 2030.
- Planned Racks: The region's total number of racks to be installed is expected to reach more than 4 million units by 2030. The United States is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: Close to 100 submarine cable systems connect North America, and many are under construction. One such cable, GigNet-1, started its service in 2023. It stretches over 1,104 kilometers and has landing points in Boca Raton, United States.
- North America dominates the global market for building data centers. A strong economy and cutting-edge network infrastructure drive the market's expansion. The United States dominates the regional market and has many significant cloud service providers, including Amazon.com, Google Inc., and Facebook. These businesses invest in building massive data centers and increased data storage and processing capabilities, which present enormous market prospects.
North America Data Center Construction Market Trends
United States to hold the Major Market Share
- The US market is the most mature and is seeing steady growth in terms of growth and operations. The rise of the us data center construction industry is attributed to the increasing success of IoT, the development of 5G networks, and the adoption of cloud-based services by businesses. Adopting digitalization across industries will contribute to a rise in data center investments by colocation, cloud, internet, and telecommunication providers, as well as the demand for streaming online entertainment content at high speeds.
- The country's data center development is expected to grow owing to a rise in rack power density, connectivity improvements with other nations, the installation of microgrids in data centers, 5G connectivity, edge data center technology, and new UPS battery technologies.
- The US government is encouraging data center investments by various means, including increasing the availability of land for development, lowering electricity tariffs, and promoting the procurement of renewable energy. For example, Arizona state offers various incentives to businesses that operate in the foreign trade zone. Businesses in a trade zone are entitled to a 72.9% reduction in state real and personal property taxes. Consequently, such initiatives will contribute to the growth of the data center construction market in the United States over the next decade.
- In the United States, data center players often prefer intelligent PDUs due to their comprehensive features that include monitoring, metering, and remote-control capabilities.
- The major operators that offer PDUs in the United States market include Raritan Inc. (Legrand), Enlogic (nvent), ABB Ltd, Tripp Lite (Eaton), LayerZero Power Systems, Vertiv Group Corp., Schneider Electric, Hubbell, and Toshiba International Corporation.
- Furthermore, these players focus on investing in product development and expanding production capacity across the region to remain competitive and gain market share. For instance, in 2023, ABB Ltd announced the launch of a next-generation three-phase power distribution unit, TruFit PDU. This is the first multifunctional PDU from ABB Ltd that provides a holistic view of equipment health and performance. It is developed to handle highly configurable data center projects.
Healthcare End-user Vertical Holds the Significant Market Share
- Data center construction in the healthcare sector is expected to witness substantial demand during the forecast period due to the growth in digital data owing to technological advances and government incentives to implement Electronic Health Records (EHR) and the proliferation of IoT and smart devices in the country's healthcare sector. In addition, the increased enforcement of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) security is further forcing healthcare organizations to upgrade data security and disaster recovery protocols or face high penalties.
- Moreover, with the introduction of the Electronic Medical Records (EMR) mandate in the United States, healthcare organizations nationwide have adopted cloud-based healthcare solutions to store and protect patient records. Most hospitals and healthcare organizations use cloud storage for patients' healthcare data. Electronic health records are stored in the cloud and updated electronically by physicians, nurses, and other healthcare providers. Such factors augment the demand for data center construction, owning to the growth in digital data in the healthcare sector.
- The digitization of consumer healthcare records in the form of electronic medical records (EMR) has significantly contributed to massive data generation. The latest innovations in medical equipment and the modernization of legacy operating systems, such as the management of personnel and the improvement in the patient response systems, generate a multitude of data, further necessitating the need for secured data center construction initiatives in the country.
- Furthermore, the country's government continuously recognizes the role of digital health and technological innovation in healthcare as an integral part of successful healthcare infrastructure. The government is making significant strides to make the healthcare sector technologically advanced and continuously increasing its healthcare expenditure to support the healthcare sector. For instance, according to the data from CMS (Office of the Actuary), the forecasted US national health expenditure was expected to reach USD 6751.4 billion in 2030 from USD 4297.1 billion in 2021.
North America Data Center Construction Industry Overview
North America's data center construction market is semiconsolidated, with the top five companies occupying most of the market share. The major players in this market are AECOM, DPR Construction Inc., Fortis Construction Inc., Whiting-Turner Contracting Company, and Skanska USA.
In June 2023, EdgeCore Digital Infrastructure announced an agreement with Bandwidth Infrastructure group, providers of dark fibers, to connect Bandwidth IG's San Francisco Bay Area network to EdgeCore's Silicon Valley data center campus in Santa Clara with up to 5 points of connection for 72MW IT load capacity.
In January 2023, Metro Edge finalized agreements with Clune Construction and other construction companies to design and build the data center facility. The project is expected to have full entitlements within the next few months and break ground shortly after.
North America Data Center Construction Market Leaders
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DPR Construction Inc.
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AECOM
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Fortis Construction Inc.
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Skanska USA
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Whiting-Turner Contracting Company
*Disclaimer: Major Players sorted in no particular order
North America Data Center Construction Market News
- January 2024: The ACS group was selected to build a hyperscale data center campus for meta in Jeffersonville, Indiana, through Turner Construction Company. The nearly 700,000-square-foot campus is expected to feature several data center buildings. Once completed, the Jeffersonville data center is anticipated to cost over USD 800 million to build.
- October 2023: JLL, Lumen Technologies, and Schneider Electric are expected to offer customers around the United States modular data centers. JLL is anticipated to identify and select locations for the initiative, including approximately 5,000 sites across Lumen's fiber network. Schneider Electric brings its expertise in design and construction, with the agreement aiming to have ready-to-use modular data centers available in six to nine months.
North America Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Growing Cloud Applications, AI, and Big Data
4.2.1.2 Rising Adoption of Hyperscale Data Centers
4.2.2 Market Restraints
4.2.2.1 Increase In Power and Real Estate Costs
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key United States Data Center Construction Statistics
4.4.1 Number of Data Centers In the North America, 2022 And 2023
4.4.2 Data Center Under Construction in the North America, In Mw, 2024 - 2029
4.4.3 Average Capex and Opex For the North America Data Center Construction
4.4.4 Data Center Power Capacity Absorption In MW, Selected Cities, United States, 2022 and 2023
4.4.5 The top CAPEX spenders on Data center infrastructure in the North America.
5. MARKET SEGMENTATION
5.1 Market Segmentation - By Infrastructure
5.1.1 Market Segmentation - By Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDU - Basic & Smart - Metered & Switched solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-Voltage
5.1.1.1.3.2 Medium-Voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Others
5.1.1.2 Power Back up Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance
5.1.2 Market Segmentation - By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-To-Chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-Row and In-Rack Cooling
5.1.2.2 Racks
5.1.2.3 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 Market Segmentation - By Tier Type
5.2.1 Tier-I and II
5.2.2 Tier-III
5.2.3 Tier-IV
5.3 Market Segmentation - By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
5.4 Market Segmentation - By Geography
5.4.1 United States
5.4.2 Canada
5.4.3 Mexico
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 AECOM
6.1.2 Whiting-turner Contracting Company
6.1.3 Turner Construction Co.
6.1.4 Jacobs Solutions Inc.
6.1.5 DPR Construction
6.1.6 Skanska USA
6.1.7 Balfour Beatty US
6.1.8 Hensel Phelps
6.1.9 McCarthy Building Companies Inc.
6.1.10 Gilbane Building Company
6.1.11 Brasfield & Gorrie LLC
- *List Not Exhaustive
7. INVESTMENTS ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
North America Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The North American data center construction market is segmented (by infrastructure (electrical infrastructure (power distribution solution(pdu, transfer switches, switchgear, power panels and components, others)), power back-up solution (ups, generators), service – design & consulting, integration, support & maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, other mechanical infrastructure)), general construction)), by tier type (tier 1 and 2, tier 3, and tier 4), by end user (banking, financial services and insurance, it and telecommunications, government and defense, healthcare, and other end users), and geography (united states, canada, and mexico).The market sizes and forecasts are provided in USD values for all the above segments.
| Market Segmentation - By Infrastructure | ||||||||||||||||||||
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| General Construction |
| Market Segmentation - By Tier Type | |
| Tier-I and II | |
| Tier-III | |
| Tier-IV |
| Market Segmentation - By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
| Market Segmentation - By Geography | |
| United States | |
| Canada | |
| Mexico |
North America Data Center Construction Market Research FAQs
How big is the North America Data Center Construction Market?
The North America Data Center Construction Market size is expected to reach USD 22.40 billion in 2024 and grow at a CAGR of 6.20% to reach USD 34.60 billion by 2030.
What is the current North America Data Center Construction Market size?
In 2024, the North America Data Center Construction Market size is expected to reach USD 22.40 billion.
Who are the key players in North America Data Center Construction Market?
DPR Construction Inc., AECOM, Fortis Construction Inc., Skanska USA and Whiting-Turner Contracting Company are the major companies operating in the North America Data Center Construction Market.
What years does this North America Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the North America Data Center Construction Market size was estimated at USD 21.01 billion. The report covers the North America Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
North America Data Center Construction Industry Report
Statistics for the 2024 North America Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
