New market research released November 26, 2025, projects the United States data center construction market will surge from $17.01 billion in 2024 to $28.95 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.09% through 2033. The growth reflects massive industry investment in cloud computing, artificial intelligence, and digital transformation initiatives.
The data center construction boom is being fueled by rapid expansion in artificial intelligence infrastructure and cloud computing services. Major tech firms are investing aggressively in new facilities to support massive workloads. The Stargate project—a joint venture between OpenAI, SoftBank, and Oracle announced in January 2025—calls for a $500 billion investment in AI infrastructure, including 20 new data centers across the United States.
Amazon is similarly aggressive with its expansion plans. In June 2025, Amazon announced a $10 billion expansion of its North Carolina data center campus, which will consist of 20 buildings and generate 500 high-skilled jobs while boosting local STEM education and workforce training initiatives. This single project exemplifies the scale of investment driving the market.
Additionally, EDGNEX Data Centers by DAMAC announced a $20 billion U.S. expansion aiming for 2,000 megawatts (MW) of capacity in January 2025, with potential to quadruple depending on market demand. The investment is expected to expand significantly across the Sunbelt and Midwest regions to support hyperscalers and AI growth.
The underlying driver of this construction surge is explosive growth in data consumption across all industries. According to CTIA's 2024 Annual Wireless Industry Survey, U.S. wireless networks transmitted a record 100.1 trillion megabytes of data in 2023—an 89% increase since 2021. This unprecedented growth in data traffic creates an immediate need for expanded data center capacity.
The proliferation of cloud services, Internet of Things (IoT) devices, and 5G connectivity is compounding demand. Cloud computing adoption continues to accelerate, with businesses of all sizes moving workloads to public cloud platforms. The combination of cloud dependency, big data analytics, and rapid industry digitization means data centers have become essential infrastructure investments across sectors.
Data center construction is highly concentrated in regions with robust digital infrastructure and technology ecosystems. The market is concentrated in California, Texas, New York, and Florida, which benefit from strong cloud adoption, abundant energy resources, favorable regulatory environments, and government support for technology investments.
Market analysis identifies the following as key states driving growth:
The shift to remote and hybrid work arrangements is another critical factor driving data center expansion. Approximately 68% of technology workers operate remotely, and roughly 22 million Americans (14% of the total U.S. workforce) now work entirely remotely. This structural shift requires robust, scalable data center infrastructure capable of supporting continuous digital operations, real-time collaboration tools, and secure remote access.
Contractors report that remote work dependency means data centers must maintain peak reliability and capacity at all times—no longer can infrastructure be tailored to office-based operations.
Beyond hyperscale cloud data centers, edge computing growth is driving demand for decentralized data center facilities positioned closer to end users for improved performance and reduced latency. This represents a fundamental shift from centralized data center models to distributed infrastructure that requires geographic diversity.
Edge computing applications in autonomous vehicles, real-time video processing, industrial IoT, and augmented reality demand infrastructure located at network edges rather than consolidated in traditional data center hubs. This creates construction opportunities across more regions than traditional hyperscale models.
Energy efficiency and environmental sustainability have become central to modern data center construction. Operators are increasingly incorporating green building practices, including advanced cooling systems, renewable energy sources, and innovative power distribution designs. New facilities are being engineered to meet aggressive carbon reduction targets.
Government incentives supporting renewable energy adoption and energy efficiency standards are accelerating sustainable data center construction. Favorable regulatory requirements and tax breaks for clean energy infrastructure are further driving market expansion. Construction firms are responding with specialized expertise in modular data center construction, which offers flexibility, rapid deployment, and cost savings for expanding operations.
Despite robust growth prospects, the data center construction market faces significant challenges. High capital investment costs remain a major barrier, with expenses covering land acquisition, construction materials, sophisticated cooling systems, and security infrastructure. Operational costs for staffing, maintenance, and electricity add to the financial burden.
Supply chain disruptions continue to impact project timelines and costs. Building cost inflation, regulatory compliance complexity, and strict energy efficiency requirements in some states add to project complexity. Smaller firms and new market entrants face particular challenges competing for projects against established contractors with access to capital and relationships with hyperscale cloud providers.
Regulatory and permitting requirements also present obstacles, including data security compliance, environmental impact assessments, and zoning approvals that vary significantly by jurisdiction.
The construction industry is responding to this unprecedented demand with specialized expertise. Major construction firms including AECOM, Turner Construction, Whiting-Turner Contracting, DPR Construction, Skanska USA, and others are ramping capacity to serve the data center market. Turner Construction, for example, doubled its data center revenue in 2025, with data center projects now representing 40% of its $40.3 billion order backlog.
For general contractors and specialty trades, the data center boom represents sustained, high-value construction opportunity extending through 2030 and beyond. Firms with experience in:
...are well-positioned to capture significant project opportunities.
The volume of data center construction has implications throughout the supply chain. Materials including steel, copper, concrete, and specialized equipment will see sustained demand. Workforce requirements will escalate, particularly for skilled trades in electrical, mechanical, and structural work. Project management and engineering resources will remain in high demand.
The projected 6.09% CAGR through 2033 represents a sustained, multi-decade growth cycle for data center construction. Unlike cyclical construction markets, data center demand is driven by fundamental infrastructure requirements that continue to intensify as digital transformation accelerates across all industries.
Contractors positioned with specialized expertise, financial capacity, and project delivery track records in data center construction are well-positioned for years of stable, profitable work ahead.
Source: Research and Markets/GlobeNewswire Report, November 26, 2025; Turner Construction data; CTIA 2024 Annual Wireless Industry Survey
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