U.S. Data Center Construction Market Size, Share, Industry Analysis by Colocation Data Centers, Hyperscale Data Centers, and Enterprise Data Centers, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Tier Standards

U.S. Data Center Construction Market – Industry Outlook & Forecast 2026-2031

UNITED STATES DATA CENTER CONSTRUCTION MARKET SIZE

The U.S. data center construction market size by investment was valued at USD 83.97 billion in 2025 and is expected to reach USD 154.49 billion by 2031, growing at a CAGR of 10.70%. The rapid adoption of generative AI, enterprise cloud migration, and data-intensive digital applications is fundamentally reshaping infrastructure demand in the Data Center Construction Market in the U.S. and the broader U.S. Data Center Infrastructure Market. AI workloads, particularly large language models as well as GPU-based training and inference, require significantly higher compute density, storage capacity, and power intensity than traditional enterprise IT, accelerating demand for AI data center infrastructure, high-performance computing data centers, and hyperscale cloud infrastructure.

Enterprises are accelerating migration from on-premise systems to public and hybrid cloud platforms to improve scalability, resilience, and cost efficiency. This has driven large enterprises to expand data center footprints to support sustained high-performance workloads, meet the low-latency requirements of real-time applications, and comply with national data sovereignty and regulatory standards, thereby reinforcing long-term demand for U.S. data center development and edge computing infrastructure across the country.

The cost of data center construction in the U.S. can range from $9 million to $14 million per MW, depending on the location. These elevated costs are influenced by factors such as limited land availability, high labor rates, inflation, and access to power. Thus, operators are seeking markets that offer comparatively lower construction costs, abundant power and land, as well as favorable regulatory environments, making these locations attractive for cost-efficient development within the Data Center Building Market U.S. and the expanding U.S. Hyperscale Data Center Construction ecosystem.

Some of the top operators investing in the U.S. include Apple, Aligned Data Centers, AWS, CyrusOne, DataBank, Digital Realty, Equinix, Meta, NTT DATA, and Vantage Data Centers, among others, supporting large-scale investments in hyperscale cloud infrastructure, AI data center infrastructure, and advanced edge computing infrastructure.

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, driving rapid expansion across the U.S. Hyperscale Data Center Construction segment. Even though current AI investments haven’t fully offset the growth in hyperscale data centers, the capacity of these facilities, especially those supporting AI data center infrastructure and high-performance computing data centers, 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 and large-scale hyperscale cloud infrastructure deployments.

With the rise in the development of AI-optimized data center facilities, the adoption of GPUs in data centers is significantly increasing in the U.S. data center development 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 for high-performance computing data centers.

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, strengthening the U.S. Data Center Construction Market and accelerating innovation in AI data center infrastructure.

Advance Cooling Solutions for AI/ML Workloads

There is a growing emphasis on sustainable and innovative technologies for data centers across the United States Data Center Construction Market Size landscape. 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, including liquid cooling data centers, 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 data center infrastructure. They facilitate the adoption of liquid cooling data centers, 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 U.S. Data Center Infrastructure Market.

For instance, in November 2025, Switch and Schneider Electric signed an expanded USD 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 U.S. for the first time, advancing liquid cooling data centers and energy-efficient Data Center Building Market U.S. developments.

The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment across the U.S. data center construction market. Some of these innovations include HVO fuel for generator sets, which reduces emissions as a measure to curb environmental impact within hyperscale cloud infrastructure developments.

Additionally, several innovative UPS batteries, such as Nickel-Zinc (NiZn) and Sodium-Ion batteries, are gaining traction in the U.S. Data Center Infrastructure Market due to their high power density, safety, sustainability, and efficiency benefits.

Liquid cooling data centers are 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 across AI data center infrastructure and high-performance computing data centers. 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 hyperscale cloud infrastructure.

U.S. DATA CENTER CONSTRUCTION MARKET REGIONAL ANALYSIS

In the U.S. 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%, followed by the Midwestern U.S., driven by investments in U.S. Hyperscale Data Center Construction and edge computing infrastructure.

In the 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, reinforcing the region’s dominance in the Data Center Construction Market in the U.S.

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 data center investments, with strong activity in U.S. Data Center Development Market projects and hyperscale cloud infrastructure 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 this 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, supporting edge computing infrastructure growth.

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 spans 715,000 square feet and is optimized for AI data center infrastructure and high-performance computing data centers. Fortis Construction is the lead builder of the campus.

UNITED STATES DATA CENTER CONSTRUCTION MARKET – VENDOR INSIGHTS

The U.S. data center construction market includes major investors such as Apple, Applied Digital, AWS, CyrusOne, DataBank, Digital Realty, Equinix, Google, Meta, Microsoft, NTT DATA, Vantage Data Centers, STACK Infrastructure, and QTS. These companies are driving large-scale investments in hyperscale cloud infrastructure, AI data center infrastructure, and the Data Center Building Market U.S.

Other active investors include Aligned Data Centers, American Tower, CloudHQ, Cologix, Compass Datacenters, DC BLOX, EdgeConneX, EdgeCore Digital Infrastructure, Flexential, Iron Mountain, Novva Data Centers, Sabey Data Centers, Stream Data Centers, Switch, T5 Data Centers, TierPoint, Yondr, 365 Data Centers, and 5C Data Centers, supporting the expansion of the U.S. Data Center Infrastructure Market.

Emerging players such as Ada Infrastructure, CleanArc Data Centers, Edged Energy, Fleet Data Centers, Lambda, Prometheus Hyperscale, Quantum Loophole, RadiusDC, and Rowan Digital Infrastructure are increasing competition in the U.S. Hyperscale Data Center Construction landscape.

AWS plans to develop two data centers in Madison County, Mississippi, with an investment of $10 billion. The project is expected to create around 1,000 construction jobs and strengthen hyperscale cloud infrastructure, AI data center infrastructure, and edge computing infrastructure across the United States Data Center Construction Market.