Providing Data Center insights to

1700+ Enterprises Across
100+ Countries

5X YOUR REVENUE, KNOW HOW arrow
PREBOOK THIS REPORT - SAVE 10% THIRD EDITION

U.S. Data Center Construction Market - Industry Outlook & Forecast 2022-2027

TO BE PUBLISHED Aug 2022
PAGES 446
DELIVERY FORMAT PDF

THE U.S. DATA CENTER CONSTRUCTION MARKET WAS VALUED AT USD 20.13 BILLION IN 2021 AND IS EXPECTED TO REACH USD 24.70 BILLION BY 2027, GROWING AT A CAGR OF 3.47%.

The U.S. Data Center Construction Market Research Report Includes Size, Share, and Growth in Terms of

  • Facility Type: Colocation, Hyperscale, and Enterprise Data Centers
  • Infrastructure: Electrical Infrastructure, Mechanical Infrastructure, and General Construction
  • Electrical Infrastructure: Uninterruptible Power Supply (UPS) Systems, Generators, Power Distribution Units, Transfer Switches & Switchgear, and Other Electrical Infrastructure
  • Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
  • Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers, & Dry Coolers, Economizer & Evaporative Coolers, and Other Cooling Units
  • Cooling Techniques: Air-based Cooling Techniques and Liquid-based Cooling Techniques
  • General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression, Physical Security, and Data Center Infrastructure Management (DCIM)/Building Management Systems (BMS)
  • Tier Standards: Tier I & II, Tier III, and Tier IV
  • Geography: The US (Western, South-Eastern, Mid-Western, South-Western, and North-Eastern)

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2022–2027.

Prebook Tag
Licence Types What are these?
10 % OFF

Save 10% on this report.
Discount already applied

GET ACTIONABLE INSIGHTS ON HOW COVID-19 IS IMPACTING YOUR BUSINESS
Enquire Now Download Free Sample

Most Exhaustive Report

icon-pages

446 Pages

icon-table

47 Tables

icon-chart

138 Charts

icon-region

5 Regions

icon-country

1 Countries

icon-company

120 Companies

icon-market

9 Market Segment

U.S. DATA CENTER CONSTRUCTION MARKET REPORT SCOPE

Report Attribute Details
Market Size (2027) USD 24.70 Billion
Market Size (2021) USD 20.13 Billion
MARKET SIZE - AREA (2027) 20.07 million Square Feet
POWER CAPACITY (2027) 2,825 MW
CAGR (2022-2028) 3.47%
BASE YEAR 2021
FORECAST YEAR 2022-2028
MARKET SEGMENTS Facility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Tier Standards
GEOGRAPHIC ANALYSIS US (Western, South-Eastern, Mid-Western, South-Western, and North-Eastern)

MARKET INSIGHTS

The U.S. data center construction market size was valued at USD 20.13 billion in 2021 and is expected to reach USD 24.70 billion by 2027, growing at a CAGR of 6.99%. The U.S. is the most mature data center development and operations market. The growing popularity of IoT, the emergence of 5G networks, and the demand for streaming online entertainment content at high speeds are the significant factors driving the growth of the data center construction market in the US.

Increasing data traffic has created additional demand for developing many data centers that support data generated by businesses and consumers. The use of cloud computing services and applications will continue to grow in the US, further developing large hyperscale cloud-based centers. Some preferred locations by operators in the US are Virginia, Texas, California, Illinois, Georgia, Oregon, Nevada, Arizona, and Ohio. Virginia and Texas are the leading states in data center investments in 2021.

U.S. DATA CENTER CONSTRUCTION MARKET OPPORTUNITIES

  • The US has emerged as the most prominent cloud market in the world with the presence of major global cloud operators. The wide adoption of cloud services has increased the country's need for data center construction.
  • There is increased growth of hyperscale facilities in the US, such as Facebook, Microsoft, Amazon Web Services, Apple, and Google. In 2021, about 27 hyperscale data centers began operations or were under construction in the US.
  • The modern data center is based upon Tier standards to evaluate facilities based on the efficiency, performance, and redundancy of the infrastructure the Uptime Institute gives. Other standards for construction include LEED Certification, TIA 942, and ANSI/BICSI 002-2019 certifications.
  • The Western US expects to dominate the market in terms of overall investment during the forecast period, garnering over $6.6 billion. However, the South-Eastern and Mid-Western US will compete with the Western US regarding investments and the number of projects during the forecast period.
  • Cloud expansion in the US involves a mix of colocation & self-built workloads. Collectively, colocation operators and investments are boosting the region's growth of data center construction.
  • The construction of data center in the US is growing substantially, with leading service providers investing significantly in new developments and expansions. There has been significant growth in M&A under Joint ventures, which have positively impacted the construction market's growth.

KEY TRENDS DRIVING THE MARKET

Impact of Cloud Connectivity 

  • After the COVID-19 outbreak, there was a growth in cloud services in the United States data center market as enterprises shifted their workloads to the cloud infrastructure. For instance, YouTube migrated its infrastructure to the cloud.
  • Many hyperscale facilities are being built, enabling cloud service providers to expand their cloud region across the US.
  • Government agencies have migrated their applications to a private cloud environment where cloud service providers operate.
  • Major regional cloud service providers plan to collaborate to provide cloud-based services. Collaborations with the new entrants to colocate their workloads with the existing colocation operators.
  • The growing use of cloud computing applications and services in the US will aid in developing cloud-based hyperscale data centers.
  • The economy projects will increase due to the investments paving the way for more construction projects across the states.

Big Data & IoT Driving the Market Growth

  • The US is one of the major hubs for IoT and big data, where most data is being generated. As a result, the deployment of hyperscale investment was witnessed in the country to keep the data secured.
  • There is a high internet penetration rate in the US, i.e., around 85%, which increases the amount of data generated. Also, the country contributes over 50% of the world's spending on big data and analytics solutions.
  • In August 2021, AT&T and Cisco partnered to launch 5G services to boost performance for Internet of Things (IoT) applications across the US.
  • Metaverse is gaining popularity allowing the users to connect via VR (Virtual Reality) and AR (Augmented Reality), generating vast amounts of data using connected devices such as mobile phones & computers.
  • The adoption of IoT will drive the demand for edge data center construction requiring low latency with high computing capabilities.

Rising Colocation Investments

  • Prominent investors in the US include Equinix, Digital Realty, CyrusOne, Google, QTS Realty Trust, Vantage Data Centers, and NTT Global Data Centers.
  • In February 2021, A 36MW IT load facility was launched by NTT Global Data Centers in Hillsboro, Oregon.
  • In May 2021, TA Realty announced its plan to develop a 300MW data center campus in Loudoun County, Virginia, spanning 1.5 million sq. ft.
  • In April 2021, the Construction of a 240MW data center campus was started by NTT Global Data Centers in Arizona.
  • In April 2021, Construction of a 48MW facility named ORD-1 was commenced by Aligned, which will be expandable to 60MW.
  • An increase in investments will help provide revenue opportunities to construction contractors and infrastructure providers worth billions of dollars.

Tax Incentives Boosting Construction Market

  • One of the essential enablers for the data center construction market is tax incentives and breaks offered in states and countries across the US, which helps yield high savings while incorporating other specified benefits.
  • Rhode Island has passed an act for exception from property and sales tax for 50 years for data centers fulfilling the criteria.
  • Tax relief of around $150 million was offered to Facebook by Utah’s local community for 20 years.
  • In 2020, Michigan approved $20 million under tax incentives for Switch Data Centers for data center construction.
  • A Data Center Investment Program was established in Illinois to provide local and state tax exemptions to the operators and owners.

COMPETITIVE ANALYSIS

  • The market consists of contractors, architectural and engineering firms, physical security vendors, and DCIM service providers. With the growing construction of hyperscale facilities, revenue opportunities for construction contractors are high as several centers are developing. Some major construction contractors operating in the market include AECOM, DPR Construction, Corgan, Turner Construction, and Jacobs and Holder Construction.
  • Construction contractors collaborate with infrastructure vendors to provide modular infrastructure solutions, helping them manage costs and scaling. Manufacturers such as Huawei offers prefabricated modular facilities such as FusionDC1000B, which can be small or medium-sized and incorporate Artificial Intelligence.
  • The increasing number of cloud regions will benefit construction contractors, infrastructure providers, architectural and engineering firms, and others.
  • Vendors are focusing on the regions with the lower labor and land costs while confirming the data center construction specifications are followed.
  • The market competitiveness will be increased by the high costs of modern security systems being procured. At the same time, the DCIM/BMS solutions will remain competitive for decreasing the OPEX of the facility.

Frequently Asked Questions

What will be the U.S. data center construction market size by 2027?

The U.S. data center construction market size is expected to reach USD 24.70 billion by 2027.

What will be the market size in terms of area for the U.S. Data Center Construction Market by 2027?

The U.S. data center construction market by area is expected to reach 20.07 million square feet by 2027.

Who are the key investors in the U.S. data center construction market?

Some key investors include Apple, Amazon Web Services (AWS), CyrusOne, DataBank, Digital Realty, Equinix, Facebook (Meta), Google, Microsoft, and NTT Global Data Centers.

What are the segments covered in the U.S. data center construction market?

Facility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Tier Standards are the segments covered in the market.

What factors drive the growth in the U.S. data center construction market?

Cloud connectivity, construction of modular infrastructures, IoT & big data, tax incentives, and increasing connectivity networks are some factors driving the market growth.

Download Free Sample

The U.S. data center construction market was valued at USD 20.13 billion in 2021 and is expected to reach USD 24.70 billion by 2027, growing at a CAGR of 3.47%. 

The following factors are likely to contribute to the growth of the U.S. data center construction market during the forecast period: 

  • Cloud Connectivity to Drive Demand for Data Centers 
  • Covid-19 Implications on Data Center Market 
  • Construction of Modular Data Centers 
  • IOT & Big Data Drive Demand for Data Center 
  • Tax Incentives to Boost Data Center Market 
  • Increase In Hyperscale Data Center Investments 
  • Increasing Connectivity Network 
  • Rise In Data Center Expansion Initiatives 
  • Colocation Data Center Investments Continue to rise. 

Base Year: 2021 

Forecast Year: 2022-2027 

The study considers the present scenario of the U.S. data center construction market and its market dynamics for 2022−2027. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market. 

Key Data Center Support Infrastructure Providers 

  • ABB 
  • Caterpillar 
  • Cummins 
  • Delta Electronics 
  • Eaton 
  • Legrand 
  • Rolls-Royce 
  • Schneider Electric 
  • STULZ 
  • Vertiv 

Key Data Center Contractors 

  • AECOM 
  • Arup 
  • Black & Veatch 
  • Corgan 
  • DPR Construction 
  • Fortis Construction 
  • Harley Ellis Devereaux (HED) 
  • Holder Construction 
  • Jacobs 
  • Rogers-O’Brien Construction 
  • Syska Hennessy Group 
  • Turner Construction 

Key Data Center Investors 

  • Apple 
  • Amazon Web Services (AWS) 
  • CyrusOne 
  • DataBank 
  • Digital Realty 
  • Equinix 
  • Facebook (Meta) 
  • Google 
  • Microsoft 
  • NTT Global Data Centers  

Other Prominent Support Infrastructure Providers 

  • Airedale International Air Conditioning 
  • Alfa Laval 
  • Asetek 
  • Bloom Energy 
  • Carrier 
  • Condair 
  • Cormant 
  • Cyber Power Systems 
  • Data Aire 
  • Enlogic 
  • FNT Software 
  • Generac Power Systems 
  • Green Revolution Cooling (GRC) 
  • HITEC Power Protection 
  • Johnson Controls 
  • KOHLER 
  • KyotoCooling 
  • Mitsubishi Electric 
  • Natron Energy 
  • NetZoom 
  • Nlyte Software 
  • Rittal 
  • Siemens 
  • TRANE (Ingersoll Rand) 
  • Tripp Lite 
  • Yanmar (Himoinsa) 
  • ZincFive 

Other Prominent Construction Contractors 

  • AlfaTech 
  • BlueScope Construction 
  • Burns & Mcdonnell 
  • CallisonRTKL 
  • Clune Construction 
  • EMCOR Group 
  • EYP MCF 
  • Gensler 
  • Fluor Corporation 
  • Gilbane Building Company 
  • HDR 
  • HITT Contracting 
  • Hoffman Construction 
  • JE Dunn Construction 
  • Linesight 
  • M+W Group (EXYTE) 
  • Morrison Hershfield 
  • Mortenson 
  • Sheehan Nagle Hartray Architects 
  • Structure Tone 
  • The Mulhern Group 
  • The Walsh Group 
  • The Weitz Company 
  • Tindall 

Other Prominent Data Center Investors 

  • Aligned 
  • American Tower 
  • CloudHQ 
  • Cologix 
  • Compass Datacenters 
  • COPT Data Center Solutions 
  • CoreSite Realty 
  • Cyxtera Technologies 
  • DartPoints 
  • DC BLOX 
  • EdgeCore Internet Real Estate 
  • EdgeConneX 
  • EdgePresence 
  • Element Critical 
  • Flexential 
  • fifteenfortyseven Critical Systems Realty 
  • GIGA Data Centers 
  • HostDime 
  • Iron Mountain 
  • Prime Data Centers 
  • QTS Realty Trust 
  • Sabey Data Center 
  • Skybox Datacenters 
  • Stream Data Centers 
  • STACK INFRASTRUCTURE 
  • Switch 
  • T5 Data Centers 
  • Vantage Data Centers 
  • Vapor IO 

New Entrants 

  • AUBix 
  • Cirrus Data Services 
  • DāSTOR 
  • EdgeX Data Centers 
  • Novva 
  • PointOne 
  • Quantum Loophole 
  • Yondr 

Segmentation by Facility Type 

  • Colocation Data Centers 
  • Hyperscale Data Centers 
  • Enterprise Data Centers 

Segmentation by Infrastructure 

  • Electrical Infrastructure 
  • Mechanical Infrastructure 
  • General Construction 

Segmentation by Electrical Infrastructure 

  • Uninterruptible Power Supply (UPS) Systems 
  • Generators 
  • Power Distribution Units 
  • Transfer Switches & Switchgear 
  • Other Electrical Infrastructure 

Segmentation by Mechanical Infrastructure 

  • Cooling Systems 
  • Racks 
  • Other Mechanical Infrastructure  

Segmentation by Cooling Systems 

  • CRAC & CRAH Units 
  • Chiller Units 
  • Cooling Towers 
  • Condensers & Dry Coolers 
  • Economizer & Evaporative Coolers 
  • Other Cooling Units 

Segmentation by Cooling Techniques 

  • Air-based Cooling Techniques 
  • Liquid-based Cooling Techniques 

Segmentation by General Construction 

  • Core & Shell Development 
  • Installation & Commissioning Services 
  • Engineering & Building Design 
  • Fire Detection & Suppression 
  • Physical Security 
  • DCIM / BMS Solutions 

Segmentation by Tier Standards 

  • Tier I & II 
  • Tier III 
  • Tier IV 

Segmentation by Geography: 

  • THE U.S.  
    • Western 
    • South-Eastern 
    • Mid-Western 
    • South-Western 
    • North-Eastern 
       

For more details, please reach us at enquiry@arizton.com

For more details, please reach us at enquiry@arizton.com

Select a license type that suits your business needs

single-user Single User Licence
$3750.00
  • Report accessible by one user only
  • Free 10% or 3 days of customization
  • Free post-sale service assistance
  • Continuous support through email
Best Value Tag
5-user 5 User Licence
$4250.00
  • Report accessible by 5 users within the organization
  • Free 15% or 4.5 days of customization
  • Free post-sale service assistance
  • Continuous support through email and telephone
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
corporate.png Corporate Licence
$5250.00
  • Free Datasheet worth $1500
  • Report accessible by the entire organization
  • Free 20% or 6 days of customization
  • Free post-sale service assistance
  • Continuous support through email and telephone
  • Direct access to lead analysts
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
datasheet.png Datasheet Licence
$1500.00
  • Report accessible by 1 user only
  • Free 15% or 32 hours of customization
  • Free post-sale service assistance
  • Direct access to lead analysts
Prebook Tag
Licence Types What are these?
10 % OFF

Save 10% on this report.
Discount already applied

Our Clientele

data-center-client

Our Clients Speak

erick

"The report by Arizton was spot on. It not only gave us insight into the pro audio market, we used it to raise funds for our company. The data proved (to the VC we pitched to) that the market was large enough for our company to not only survive but also grow."

Erik Young
CEO, Co-founder
Audink Inc., DBA Audios
SPEAK WITH OUR ANALYST

Want to know more about the report or any specific requirement?

Click to Email +1-312-235-2040

No One Understands the Data Center Market Better than ARIZTON.

banner
10

CATEGORIES

GET SAMPLES BEFORE PURCHASE

500

REPORTS

GET SAMPLES BEFORE PURCHASE

banner
25

COUNTRIES

GET SAMPLES BEFORE PURCHASE

banner
50+

VENDORS

GET SAMPLES BEFORE PURCHASE

Explore Data Center Reports

What makes this report premium?

1.

The exclusive and most exhaustive research report

3.

Reflect the most authentic market sentiments

2.

Continous update with new content and analysis

4.

The reports are best value for money

banner

We Have the Most Exhaustive, Unique & Exclusive Reports for Data Center Market .

premium-man

Why Arizton?

  • 100% Customer Satisfaction
  • 24x7 availability – we are always there when you need us
  • 200+ Fortune 500 Companies trust Arizton's report
  • 80% of our reports are exclusive and first in the industry
  • 100% more data and analysis
  • 1000+ reports published till date