According to TechSci Research report, “North America Data Center Construction Market – By Country, Competition Forecast & Opportunities, 2030F”, The North America Data Center Construction Market was valued at USD 76.56 Billion in 2024 and is expected to reach USD 110.76 Billion by 2030 with a CAGR of 6.19% during the forecast period.
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Advancements in edge computing are driving growth in the North America data center construction market. Edge computing involves deploying data processing closer to the data source to reduce latency and improve the performance of applications that require real-time data analysis. As the number of IoT devices and connected systems increases, there is a growing need for edge data centers that can provide localized processing and storage capabilities. This trend is particularly relevant for industries such as autonomous vehicles, healthcare, and manufacturing, where low-latency data processing is critical. The construction of edge data centers is expanding to meet the demands of these applications, leading to increased investments in infrastructure and the development of new facilities across North America.
Modular data center designs are gaining traction in the North America construction market due to their flexibility, scalability, and cost-effectiveness. Modular data centers, which involve prefabricated components that can be quickly assembled on-site, offer a solution to the growing demand for rapid deployment and scalability. These designs enable operators to expand their data center capacity in a phased manner, aligning infrastructure growth with business needs. The modular approach also allows for easier upgrades and maintenance, reducing downtime and operational disruptions. This trend is particularly beneficial for colocation providers and enterprises seeking to rapidly adapt to changing technology requirements and market conditions. As a result, modular data center solutions are becoming a preferred choice for both new construction and expansion projects.
Market Drivers
- Surging Data Traffic and Cloud Adoption
The explosive growth in data generation, driven by the proliferation of connected devices, IoT applications, and streaming services, is fueling demand for robust and scalable data centers. Enterprises and cloud providers are investing heavily in infrastructure to handle this surge. - Expansion of Hyperscale and Colocation Providers
The region is witnessing large-scale investments from hyperscale companies and colocation service providers. These players are constructing advanced data center facilities to meet enterprise demands for flexible, secure, and scalable computing resources. - Government and Regulatory Support
Federal and state-level policies that support digital infrastructure development, energy efficiency incentives, and tax benefits for green buildings are encouraging data center construction across the U.S. and Canada. - Digital Transformation Across Industries
Businesses across finance, healthcare, retail, and manufacturing sectors are digitizing operations, requiring more processing power, storage, and real-time data access — all of which boost demand for modern data centers. - Edge Computing Proliferation
To meet the need for low-latency data processing, companies are investing in edge data centers in suburban and rural areas, driving construction activity outside traditional tech hubs.
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Based on End-User Industry, BFSI dominated in the North America Data Center Construction Market in 2024. The BFSI industry is experiencing unprecedented growth in digital transformation initiatives. Financial institutions are increasingly adopting technologies such as cloud computing, big data analytics, and artificial intelligence to enhance operational efficiency, improve customer experiences, and drive innovation. These technologies require robust and scalable data infrastructure to handle large volumes of sensitive financial data securely and efficiently. Consequently, BFSI organizations are investing heavily in new data center construction to support their expanding digital operations.
Regulatory compliance is a significant driver for data center investments within the BFSI sector. Financial institutions must adhere to stringent data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) and various national standards. To ensure compliance and safeguard customer information, these organizations require highly secure and reliable data centers with advanced security measures, redundant systems, and rigorous data protection protocols.
The BFSI sector also demands high availability and uptime for its data center operations. Financial transactions and services must be continuously accessible, and any downtime can lead to substantial financial losses and reputational damage. As a result, BFSI companies prioritize building and upgrading data centers with advanced redundancy, disaster recovery capabilities, and robust infrastructure to ensure uninterrupted service delivery. Furthermore, the rise of fintech and digital banking services has intensified the need for sophisticated data center solutions. These emerging technologies and platforms require scalable and flexible data infrastructure to accommodate growing transaction volumes and user demands.
Market Trends
- Green and Sustainable Data Centers
There’s a clear shift toward energy-efficient designs and the use of renewable energy sources. LEED-certified facilities, advanced cooling technologies, and water conservation measures are becoming standard in new construction projects. - Modular and Prefabricated Data Centers
To accelerate deployment and reduce costs, many companies are adopting modular and prefabricated construction techniques. These allow faster rollout, scalability, and easier customization. - Rise of AI-Optimized Infrastructure
Data centers are being designed to support the high-density power and cooling needs of AI and machine learning workloads. Infrastructure is evolving to accommodate GPUs, TPUs, and other specialized hardware. - Hybrid and Multi-Cloud Ecosystems
The architectural complexity of data centers is increasing as organizations opt for hybrid and multi-cloud strategies, requiring integrated infrastructure capable of seamless connectivity with various cloud platforms. - Focus on Physical and Cybersecurity
Data center construction projects are increasingly prioritizing both physical security systems (biometric access, surveillance) and cybersecurity infrastructure to protect sensitive data and meet compliance standards.
The rapid growth of cloud computing, big data analytics, and emerging technologies also contributes to the increased demand for data centers in Canada. As Canadian businesses and global tech giants expand their digital operations, there is a growing need for high-capacity and scalable data centers. This surge in demand drives significant investments in new data center construction projects across the country.
Canada’s strong network connectivity and proximity to the U.S. market enhance its attractiveness for data center investments. The country’s well-developed telecommunications infrastructure facilitates seamless data transfer and connectivity between Canada and major U.S. technology hubs, supporting cross-border business operations and data exchange. Canada’s stable political and economic environment provides a secure and reliable foundation for long-term investments in data center infrastructure. This stability, combined with the aforementioned factors, makes Canada a key player in the North America Data Center Construction market and drives its rapid growth during the forecast period.
Key market players in the North America Data Center Construction market are: –
- Amazon Web Services, Inc.
- Microsoft Corporation
- Google LLC
- Equinix, Inc.
- Digital Realty Trust Inc.
- NTT DATA, Inc.
- Vertiv Group Corp.
- CyrusOne LLO
- Iron Mountain, Inc.
- CBRE, Inc.
- Turner Construction Company
- Skanska USA Inc.
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“The North America Data Center Construction market presents numerous opportunities, driven by surging demand for cloud services, big data, and artificial intelligence. Opportunities include expanding infrastructure to support hybrid and multi-cloud environments, integrating advanced energy-efficient technologies, and enhancing cybersecurity measures. The rise of edge computing and the need for localized data processing create potential for new data center projects. Government incentives for green energy and sustainable construction practices offer financial benefits for developing eco-friendly facilities. Companies can capitalize on these trends by investing in innovative, scalable, and resilient data center solutions to meet evolving market demands.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.
Market Opportunities
- Rural and Tier 2/3 City Expansion
As land and energy costs rise in major metro areas, data center construction is expanding into smaller cities and rural regions, opening new markets and benefiting from lower operational costs. - 5G-Enabled Infrastructure Development
The rollout of 5G is generating opportunities for data centers closer to the network edge. Construction companies have a chance to lead the development of micro-data centers that support faster data transmission and mobile computing. - Demand from Emerging Technologies
Technologies like augmented reality (AR), virtual reality (VR), blockchain, and autonomous vehicles are increasing computing requirements. This surge presents opportunities for specialized data center builds tailored to high-performance computing. - Retrofit and Modernization Projects
Existing data centers are undergoing upgrades to improve energy efficiency, support higher-density workloads, and comply with new environmental regulations. Construction firms can capitalize on these retrofit demands. - Strategic Partnerships and Alliances
Collaboration between real estate developers, cloud service providers, and construction firms is becoming more common, creating opportunities to tap into co-investment models and long-term service contracts.
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