Introduction

The North America Data Center Construction Market refers to the industry involved in designing, building, and delivering data center facilities across the United States, Canada, and Mexico. This includes civil works, electrical and mechanical infrastructure, cooling systems, networking and IT systems, site development, and associated support services. End users include hyperscale cloud providers, colocation operators, enterprises, telecom companies, and public sector bodies.

This market plays a central role globally because North America remains a primary hub for digital infrastructure. Demand is driven by cloud computing, artificial intelligence (AI) workloads, streaming media, 5G networks, and edge computing. The market's health strongly influences global supply chains for servers, power equipment, cooling systems, and site infrastructure. In 2024, the North America data center construction market is estimated at USD 76.56 billion, with projections showing strong growth through 2035. Yahoo Finance

Learn how the North America Data Center Construction Market is evolving—insights, trends, and opportunities await. Download report:  https://www.databridgemarketresearch.com/reports/north-america-data-center-construction-market

The Evolution

Data center construction in North America has evolved through several distinct phases.

• In the early days (1990s–2000s), data centers focused on on-premises enterprise facilities, modest size, basic cooling and electrical systems.

• Hyperscale data centers entered the picture in the 2010s, driven by cloud providers like Amazon Web Services, Microsoft Azure, Google Cloud. These facilities needed large-scale power, advanced cooling, larger footprints.

• Modular designs and prefabricated components became more common in mid-2010s, reducing construction timelines and costs.

• Recent years have seen new cooling technologies (liquid cooling, immersion cooling), sustainable design (power from renewables, more efficient PUE designs), and regulatory emphasis on energy consumption and carbon emissions.

Major milestones include expansion of hyperscale campuses, acceptance of stricter environmental and energy regulations, integration of AI workloads with higher power density requirements, and the rise of edge data centers to serve low-latency applications.

Shifts in demand include rising adoption of AI and big data, remote work and streaming accelerating consumption of cloud services, and concern over data sovereignty pushing localized data center construction.

Market Trends

Several important trends are shaping the North America data center construction market:

• Hyperscale expansion: Large cloud providers are committing multi-billion-dollar investments in new campuses. In Arizona, Texas, Georgia, and other states, major hyperscale builds are underway. Mordor Intelligence+2Persistence Market Research+2

• Edge data centers growth: Demand for low latency is pushing smaller installations nearer to end users. Telecom companies, ISPs, and media providers are investing in edge sites. Mordor Intelligence+1

• High-density infrastructure demand: AI and ML workloads demand more power per rack, higher cooling capacity, better electrical infrastructure. This is increasing the share of electrical and power distribution spend. Mordor Intelligence+1

• Sustainability and green power integration: Renewable energy sourcing, energy efficiency, water usage, and carbon-neutral design are influencing site selection and construction practices. Mordor Intelligence+1

• Modular and prefabricated construction: Using off-site prefabricated components for electrical and mechanical systems speeds build times and reduces cost overruns. Mordor Intelligence

• Regulatory and site constraints: Regulatory approvals (zoning, environmental permits), power grid access, and availability of land are increasingly critical factors in determining where and how data centers are built. Mordor Intelligence

Challenges

The market faces significant challenges:

• Power and cooling constraints: Many new data centers require large and stable power supplies; grids in some regions are strained. Cooling requirements for high-density equipment increase water usage, complexity.

• Regulatory delays: Permitting, environmental reviews, impact assessments vary by state and municipality in the U.S., sometimes creating multi-year delays.

• High capital costs and supply chain risks: Cost of power equipment, servers, cooling hardware, building materials has increased. Global supply chain disruptions (semiconductors, specialized components) affect timelines.

• Skilled labor shortage: Electrical and mechanical specialists, technicians experienced with high-density and liquid cooling are less available, pushing up wages. Mordor Intelligence

• Sustainability pressure vs cost: Meeting green building standards, renewable energy sourcing, carbon emissions reductions adds cost to design and construction. Return on those investments can be longer term.

• Latency and site locality pressures: Edge centers require many smaller sites closer to users; site selection becomes critical and sometimes expensive.

Market Scope

Segmentation by Infrastructure Type

• Electrical infrastructure (power distribution units, switchgear, UPS, backup generation)

• Mechanical / cooling infrastructure (air cooling, liquid cooling systems, HVAC, immersion cooling)

• General civil / shell (site preparation, construction, building shell)

• IT infrastructure (racks, servers, networking hardware)

By Tier Type

• Tier I & II (lower redundancy, smaller builds)

• Tier III (common standard, redundant systems)

• Tier IV (highest availability, fault tolerance)

By Data Center Type

• Hyperscale (large campuses built by cloud providers)

• Colocation providers

• Enterprise data centers (private)

• Edge / micro data centers

By End-User Industries

• Cloud service providers / hyperscale

• IT & telecommunications

• Financial services (banking, trading)

• Healthcare

• Public sector / government

• Media, entertainment, and content providers

• Retail and e-commerce

By Geography

• United States (dominant share)

• Canada

• Mexico

Market Size and Factors Driving Growth

Current Valuation

• North America Data Center Construction Market was valued at USD 15,988.24 million in 2021 and is expected to reach USD 37,660.91 million by 2029, registering a CAGR of 18.30% during the forecast period of 2022-2029.

Forecast to 2035

• From 2025 through 2031, Mordor forecasts a CAGR of about 6.2%, growing to USD 34.13 billion by 2031. Mordor Intelligence

• If that growth continues or increases slightly in the latter half of the decade (2025-2035), the market may reach USD 50-60+ billion by 2035, depending on accelerating AI and edge demand, regulatory facilitation, and increased investment. This projection assumes similar or slightly higher CAGR beyond 2031.

Key Growth Drivers

• AI and ML workloads: Growing demand for training/inference infrastructure with high power and cooling needs.

• Cloud adoption and data growth: Enterprises shifting more operations to cloud and hybrid environments. Big data, video streaming, gaming, and IoT are increasing storage and processing demand.

• Edge computing and 5G: Demand for smaller, localized data centers for low latency applications (autonomous vehicles, AR/VR, real-time analytics).

• Government and regulatory push for data sovereignty: Local data storage requirements increasing data center builds in certain states or regions.

• Sustainability and ESG targets: Organizations requiring green energy, efficiency, renewable power purchase agreements.

• Financial incentives and tax credits: Some U.S. states and provinces offer incentives, rebates, or favorable regulation to attract data center investment.Opportunities in Emerging Regions of North America

• Canadian provinces with surplus clean power (Quebec, Alberta, British Columbia) offer opportunities for green data center projects.

• Mexico emerging as a lower-cost site for colocation and edge centers, especially for serving Latin American traffic and offloading demand from U.S. border states.

• Secondary U.S. markets where land and power are more accessible: Texas (outside hyperscale hubs), Arizona, Utah, and parts of the Southeast.

• Modular / prefabricated data center models to reduce construction time and cost in smaller markets.

• Innovations in cooling (immersion, ambient, hydrogen cooling) and use of alternative energy sources such as solar, wind, or off-grid generation systems.

Conclusion

The North America data center construction market is entering a phase of strong growth, driven by AI, cloud growth, edge computing, and regulatory trends favoring sustainability and local data storage. It is currently valued in the tens of billions (USD 70-80+ billion region wide depending on definition), with estimates of reaching well over USD 50-60 billion by 2035 for pure construction work, potentially more if full build-out including infrastructure and IT hardware are included.

Success in this market will depend on innovation in cooling, power infrastructure, modular builds, skilled labor availability, and regulatory efficiency. Stakeholders such as developers, builders, service providers, and governments that align with sustainability, speed, and high quality will gain competitive advantage. The market presents expanding opportunities especially in less saturated regions and in meeting the demands of new workload types and regulatory compliance.

Frequently Asked Questions (FAQ)

Q1: What is the current size of the North America Data Center Construction Market?
It is estimated at USD 76.56 billion in 2024 for the broader market. For specific construction-only segments, estimates like USD 23.79 billion in 2025 are reported. Yahoo Finance+1

Q2: What growth rate (CAGR) is expected for 2025-2031 (or beyond)?
Mordor Intelligence forecasts a CAGR of approx. 6.2% through 2031. The U.S. data center construction market shows roughly 10.4% CAGR from 2025-2032 in reports. Mordor Intelligence+1

Q3: Which regions and states dominate market activity?
The United States dominates more than 80-85% of the North America market by expenditure. Key states include Texas, Virginia, Georgia, and other cloud-friendly, power-available, land-affordable areas. Canada and Mexico show growth potential. Mordor Intelligence

Q4: Which segments are the largest by infrastructure type?
Electrical infrastructure (power distribution, UPS, generators) holds a major share; cooling and mechanical systems are rising fastest. Tier III facilities represent major share with Tier IV growing rapidly. Hyperscale/self-built data centers also represent a large‐share segment. Mordor Intelligence

Q5: What are the biggest risks or barriers in this market?
Power availability; regulatory and permitting delays; high cost of construction and components; labor shortages; increasing pressure to meet sustainability and environmental requirements.

Q6: What is expected by 2035 for this market?
Given existing growth, by 2035 the market may exceed USD 50-60+ billion for construction services alone, likely higher when factoring in full data center build-outs and IT/infrastructure deployment. Regions outside major hubs are likely to capture increasing share.

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