North America Data Center Construction Market – Industry Outlook & Forecast 2026-2031
North America Data Center Construction Market Growth Insights – Market Area to Reach 53.71 Million Sq. Ft. and Power Capacity to Exceed 13,865 MW by 2031.
NORTH AMERICA DATA CENTER MARKET SIZE AND SHARE
| MARKET SIZE (INVESTMENT) | USD 158.20 Billion(2031) |
| MARKET SIZE (AREA) | 53.71 Million Sq. Ft. |
| MARKET SIZE (POWER CAPACITY) | 13,865 MW |
| CAGR - INVESTMENT (2025-2031) | 10.86% |
| HISTORIC YEAR | 2022-2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| EMERGING LOCATIONS | Indiana, Iowa, Louisiana, Mississippi, New Mexico, and Oklahoma |
| MAJOR PLAYERS | Amazon Web ServicesAppleApplied DigitalCologixCompass DatacentersCyrusOne |
NORTH AMERICA DATA CENTER CONSTRUCTION MARKET SIZE
The North America data center construction market size was valued at USD 85.23 billion in 2025 and is expected to reach USD 158.20 billion by 2031, growing at a CAGR of 10.86% during the forecast period. North America continues to lead the global data center construction market, supported by sustained investments in hyperscale and colocation facilities, rising AI-driven power demand, and expanding large-scale campus developments across the US and Canada.
Hyperscale operators are the primary growth engine of the North American market, with large technology companies such as Amazon Web Services, Microsoft, Google, and Meta continuously expanding their infrastructure footprints. These players are heavily concentrated in the key US data center hubs, particularly Northern Virginia, which remains the world’s largest data center cluster.
The average cost of data center construction in North America ranges from approximately $12 million to $14 million per MW, depending on the location and project specifications. Construction costs are influenced by factors such as labor expenses, material costs, land prices, power infrastructure, and permitting requirements. As a result, developers are increasingly prioritizing locations that offer scalable power availability, competitive land costs, and streamlined regulatory processes to optimize project economics and accelerate deployment.
Emerging data center markets across North America, including states such as Indiana, Iowa, Louisiana, Mississippi, New Mexico, and Oklahoma in the US, as well as Alberta and Quebec in Canada, are attracting significant investment due to lower land costs, improving power availability, tax incentives, and growing fiber connectivity, providing alternatives to capacity-constrained primary hubs.
Leading colocation operators such as Equinix, Cologix, Vantage Data Centers, QTS Data Centers, CyrusOne, Digital Realty, NTT DATA, Databank, Corscale Data Centers, Aligned Data Centers, STACK Infrastructure, and QScale are investing billions of dollars in new data center developments across the region. The market also has a strong pipeline of over 800 upcoming data center projects, highlighting sustained growth in cloud, colocation, and AI infrastructure.
North America is home to the world's largest hyperscale cloud providers, including Amazon Web Services (AWS), Microsoft, Google, Meta, and Oracle, which continue to drive data center construction through multi-billion-dollar investments in large-scale AI- and cloud-ready campuses across the US and Canada.
NORTH AMERICA DATA CENTER CONSTRUCTION MARKET INSIGHTS BY AREA
The North America data center construction market by area is expected to reach 53.71 million square feet by 2031. Data center investments are becoming more widely distributed across North America as developers balance proximity to major population centers with access to scalable power infrastructure, renewable energy resources, and large development sites.
Supported by strong demand for cloud and AI infrastructure, the region is expected to significantly expand its data center space between 2025 and 2031, with developers increasingly exploring established and emerging markets to meet growing capacity requirements.
Major hyperscale operators continue to actively acquire large land parcels to secure future expansion capacity and power access. Companies such as Amazon Web Services, Microsoft, Google, and Meta have expanded their land banks across both established and emerging markets, reflecting a long-term strategy to secure development pipelines amid increasing competition for suitable data center sites and grid-connected land.
NORTH AMERICA DATA CENTER CONSTRUCTION MARKET INSIGHTS BY POWER CAPACITY
The North America data center construction market by power capacity is expected to reach 13,865 MW by 2031. The rapid expansion of cloud computing, AI, and HPC workloads is driving demand for larger data center campuses and higher power allocations, prompting hyperscale operators and colocation providers to secure additional utility capacity and long-term energy resources across North America.
This strong growth in data center electricity demand is also driving hyperscale operators and colocation providers to increasingly rely on long-term Power Purchase Agreements (PPAs) to secure future energy supply, support planned capacity expansion, and ensure reliable power availability for growing data center operations.
Key Report Takeaways
- Facility Type - The colocation data centers segment by investment accounted for the largest market share of around 52% in 2025.
- Infrastructure - General construction dominates the North America data center construction market.
- Electrical Infrastructure - The UPS systems segment accounted for the largest share in 2025.
- Mechanical Infrastructure - Cooling systems in mechanical infrastructure accounted for the largest share of the North America data center construction market in 2025.
- Cooling System - The chiller units dominate the North America data center construction market in 2025.
- Cooling Techniques - Liquid-based cooling shows the fastest-growing CAGR of 16.24% during the forecast period.
- General Construction - The core & shell development remains dominant with the largest share in 2025.
- Tier Standards - The Tier III standard shows the highest growth during the forecast period.
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
North America Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
NORTH AMERICA DATA CENTER MARKET TRENDS AND DRIVERS
TRENDS
Sustainability Initiatives and Renewable Energy
The North America data center industry is increasingly aligning with renewable energy adoption as hyperscale operators scale AI and cloud infrastructure. Companies are prioritizing long-term clean power procurement strategies, including wind, solar, and emerging firm renewable technologies, to reduce carbon intensity while meeting the rapidly growing electricity demand.
In May 2026, Meta signed an agreement with DESRI for solar PPAs worth 850 MW across Oklahoma, Texas, and Mississippi to expand its contracted renewable energy portfolio to over 2.5 GW, reinforcing a sustainability strategy that directly links large-scale data center growth in the US with utility-scale solar and storage deployment across multiple regional grids.
Sustainability and renewable energy have become central to North America's data center construction market, with operators increasingly integrating renewable power procurement, energy-efficient cooling technologies, water conservation measures, and low-carbon building designs to meet corporate net-zero commitments while supporting the rapid growth of AI and cloud infrastructure.
AI-driven Expansion of Hyperscale and Mega Data Centers
North America continues to strengthen its position as the global hub for hyperscale infrastructure, supported by sustained investments from major hyperscale operators such as Amazon Web Services, Microsoft, Google, Meta, and Apple. These investments are driving the construction of larger campuses, expansion in power capacity, and the deployment of advanced AI computing resources.
The market is rapidly transitioning toward purpose-built AI campuses equipped with high-density GPU clusters, liquid cooling, and multi-hundred-megawatt power infrastructure. For example, Microsoft unveiled its Fairwater AI data center in Wisconsin in September 2025, designed to support hundreds of thousands of NVIDIA GPUs.
Long-term hyperscale capacity commitments and multi-gigawatt campus developments are accelerating data center construction across North America, reinforcing the region's position as the world's largest hub for AI and cloud infrastructure.
RESTRAINTS
Rising Construction and Operating Costs
The North America data center construction market is experiencing rapid expansion, driven by the surge in cloud computing, artificial intelligence (AI), and digital transformation initiatives. However, this growth is increasingly challenged by rising construction and operating costs, which are reshaping investment strategies and project timelines across North America.
On the construction side, costs have increased due to inflation in raw materials such as steel, concrete, and electrical components, further compounded by persistent supply chain disruptions and longer lead times for critical equipment, including transformers and cooling systems. These challenges are increasing project costs and extending construction timelines for data center developers.
Data center construction costs continue to rise as mechanical and electrical infrastructure accounts for over 80% of total project costs. The growing demand for high-density AI workloads is accelerating investment in advanced cooling and power systems, increasing both upfront development expenses and ongoing operational costs.
Ongoing geopolitical conflicts have also tightened global supply chains for key electrical infrastructure, including transformers and copper-based components, pushing up costs and extending delivery timelines for North American data center projects. This has further increased construction expenses and contributed to operational delays for providers.
NORTH AMERICA DATA CENTER CONSTRUCTION MARKET DRIVERS
Rising Adoption of Cloud-based Services
North America is among the world’s largest concentrations of hyperscale cloud providers, including Amazon Web Services, Microsoft, Google, IBM Cloud, and Oracle, making the region a global hub for cloud computing, AI development, and large-scale data center investments.
In April 2026, Amazon Web Services reported that rising hardware and memory costs, coupled with ongoing supply chain constraints, were accelerating enterprise migration from on-premises infrastructure to cloud platforms, with organizations increasingly relying on hyperscale cloud providers for scalable and readily available computing capacity.
As organizations continue to migrate applications, data, and AI workloads to the cloud, demand for hyperscale infrastructure is expected to grow, supporting continued investment and capacity expansion across the North America data center construction market.
Improvement in Connectivity via Submarine Cables
Submarine cables are playing a central role in reshaping global digital connectivity by enabling faster, more resilient, and higher-capacity international data exchange, thereby supporting the rapid growth of cloud computing, AI workloads, and cross-border digital services.
Google’s Nuvem subsea cable reached landfall in South Carolina in June 2026, strengthening transatlantic connectivity between the US, Portugal, the Azores, and Bermuda. Spanning 4,349 miles, the cable has a design capacity of 384 Tbps across 16 fiber pairs and is expected to strengthen international data traffic routes.
Canada is also witnessing strong progress in domestic subsea connectivity, with Bell deploying a new nine-mile fiber system linking Fogo Island and Change Islands to mainland Newfoundland under the Universal Broadband Fund. This initiative is expected to improve connectivity and support reliable digital services in the region.
In July 2025, Google announced its upcoming Sol transatlantic subsea cable system, which will connect the US, Spain, Bermuda, and the Azores to strengthen digital connectivity across the Atlantic. The cable will land in Palm Coast, Florida, at a new DC BLOX facility and in Santander, Spain, via Telxius, enhancing route diversity, resilience, and high-capacity support for cloud and AI-driven traffic between North America and Europe.
SEGMENT ANALYSIS
INSIGHTS BY FACILITY TYPE
The North America data center construction market by facility type is segmented into hyperscale data centers, colocation data centers, and enterprise data centers. The colocation data centers segment by investment accounted for the largest market share of around 52%. The North American data center market is experiencing record levels of investment, driven by increasing demand for cloud computing, expansion of edge infrastructure, and rapid adoption of AI, big data, and IoT technologies. This growing demand is encouraging colocation operators to expand their capacity and invest in new facilities across the region.
The market has the presence of several global and regional colocation operators that continue to invest in the region, including Equinix, Aligned Data Centers, Digital Realty, CyrusOne, QTS Data Centers, Vantage Data Centers, Cologix, NTT DATA, STACK Infrastructure, EdgeConneX, Compass Datacenters, Urbacon Data Centre Solutions, and QScale, thus helping segmental growth.
INSIGHTS BY INFRASTRUCTURE
Based on infrastructure, general construction dominates the North America data center construction market, accounting for the largest market share. General construction in data centers includes building development activities such as site preparation and core and shell development, along with installation and commissioning services, which help operators deploy facilities efficiently and support future capacity expansion.
These activities are supporting market growth by enabling the rapid development of new data center facilities to meet rising demand from cloud computing, AI, and digital services. They also help operators optimize facility design, accelerate project completion, and accommodate increasing power and computing requirements, further supporting capacity expansion across North America.
INSIGHTS BY ELECTRICAL INFRASTRUCTURE
Based on the electrical infrastructure, the UPS segment accounted for the largest share of the Latin America data center construction market in 2025. Modern data centers are increasingly adopting lithium-ion and grid-interactive UPS systems, enabling higher energy efficiency, longer battery life, and enhanced support for high-density AI workloads while improving overall grid resilience. For instance, the PDX-01 facility of Aligned Data Centers incorporates advanced UPS infrastructure integrated with a Battery Energy Storage System (BESS) and N+1 redundant architecture, reflecting the industry’s shift toward next-generation, AI-ready power resilience and energy management.
INSIGHTS BY MECHANICAL INFRASTRUCTURE
The cooling systems in mechanical infrastructure account for the largest North America data center construction market share in 2025. Sustainability and energy efficiency are becoming key drivers of cooling innovation, with data centers increasingly adopting liquid cooling, closed-loop water systems, and free-cooling technologies to reduce power consumption, water usage, and operational costs while supporting high-density AI workloads. For instance, the QC6 Montreal III facility of Vantage Data Centers utilizes N+2 redundant cooling, closed-loop chilled water systems, and free cooling for up to 80% of the year, achieving near-zero water usage.
Based on the cooling systems, the chiller units dominate the Latin America data center construction market in 2025. The Reno facility of Novva Data Centers utilizes air-cooled chillers that eliminate water evaporation, supporting sustainable and water-efficient cooling operations in a drought-prone region. Similarly, the MTL8 data center of Cologix in Montreal features N+1 redundant chillers, ensuring reliable cooling operations and supporting continuous data center performance.
INSIGHTS BY COOLING TECHNIQUES
The liquid-based cooling technique shows significant growth, with the fastest-growing CAGR of 16.24% during the forecast period. In data centers, liquid-based cooling techniques include chilled water cooling, direct liquid cooling, and immersion cooling. The growing adoption of these technologies is driven by the need to efficiently manage increasing heat loads from high-density computing and AI workloads. Liquid cooling systems are increasingly being integrated with closed-loop chilled water architectures, improving heat transfer efficiency while minimizing water consumption and supporting more sustainable data center operations.
INSIGHTS BY GENERAL CONSTRUCTION
Based on general construction, core & shell development remains dominant, accounting for the largest share in 2025. Core and shell development is becoming the dominant hyperscale data center model, enabling rapid and phased expansion of AI-ready capacity by pre-building power- and cooling-intensive infrastructure while maintaining flexible white space for tenant-specific deployment. This approach supports faster capacity expansion and allows operators to respond efficiently to the growing demand for high-density computing infrastructure.
Data center construction costs in North America typically range between $10 million and $13 million per MW, driven by rising investment in AI-ready infrastructure, high-density power and cooling systems, sustainability requirements, and escalating equipment and grid interconnection costs.
INSIGHTS BY TIER STANDARDS
The Tier III standard dominates the market and shows the highest growth during the forecast period. Most new data centers are designed according to Tier III standards, with a minimum of N+1 redundancy in power and cooling infrastructure. This level of redundancy enables continuous operations during maintenance and equipment failures, improving reliability and reducing downtime. The increasing adoption of Tier III standards is supporting market growth by meeting the reliability requirements of cloud, colocation, and enterprise customers while enabling operators to expand data center capacity efficiently.
GEOGRAPHY ANALYSIS
US
Canada
Other Regions in North America
COMPETITIVE LANDSCAPE
The North America data center construction market is characterized by the presence of major hyperscale cloud providers, colocation operators, and infrastructure developers, including Amazon Web Services (AWS), Apple, Applied Digital, Bell, Cologix, Compass Datacenters, CyrusOne, DataBank, Digital Realty, Equinix, eStruxture Data Centers, Google, Meta, Microsoft, NTT DATA, QScale, STACK Infrastructure, Urbacon Data Centre Solutions, Vantage Data Centers, and others.
The North America data center construction market continues to attract large-scale investments from major operators. For example, in May 2026, Google announced a $15 billion investment to develop a new hyperscale data center campus in New Florence, Missouri. The project includes the addition of 500 MW of new power capacity in collaboration with Ameren to support growing AI and cloud computing demand.
New Entrants include Ada Infrastructure, Ardent Data Centers, Beacon AI Centers, CleanArc Data Centers, Fleet Data Centers, Metrobloks, Prometheus Hyperscale, Quantum Loophole, Related Digital, Rowan Digital Infrastructure, Tract, and Yondr Group. These companies are expanding the market by developing hyperscale- and AI-ready campuses in emerging locations, increasing competition and supporting the region's growing demand for cloud and AI infrastructure.
North America Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
RECENT INDUSTRY DEVELOPMENTS
TABLE OF CONTENTS FOR NORTH AMERICA DATA CENTER INDUSTRY REPORT
NORTH AMERICA DATA CENTER MARKET REPORT SCOPE
By Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
By Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
By IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
By Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
By Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
By Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
By Cooling Techniques
- Air-based
- Liquid-based
By General ConstructionDCIM
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
By Tier Standard
- Tier I & II
- Tier III
- Tier IV
By Geography
- North America
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
Research Outputs
Syndicated reports, custom consulting assignments, and facility-level databases.
Facility-level depth
existing and upcoming facilities tracked across North America.
Exclusive research
80% of Arizton reports are exclusive and first-to-market.
Trusted by leaders
200+ Fortune 500 companies rely on Arizton research.
24x7 availability
Continuous analyst and post-sale support.
Free customization
15–20% free customization on every license tier.
KEY QUESTIONS ANSWERED IN THE REPORT
How big is the North America data center construction market?
What is the growth rate of the North America data center construction market?
What is the estimated market size in terms of area in the North America data center construction market by 2031?
What are the key trends in the North America data center construction market?
How much MW of power capacity is expected to reach the North America data center construction market by 2031?
Last Refreshed on : September 2026
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