North America Data Center Construction Market is Expected to grow at a robust CAGR of 6.19% through 2030F
The
increasing North America data center construction market is driven by growth in
cloud computing and digital services, rise in big data and analytics during the
forecast period 2026-2030.
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. 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.
With
the rising frequency and sophistication of cyber threats, data center security
has become a critical focus in the North America construction market. Data
center operators are investing in advanced security measures to protect their
infrastructure and data from potential breaches. This includes the
implementation of physical security enhancements, such as biometric access
controls, surveillance systems, and perimeter protection, as well as
cybersecurity measures like intrusion detection systems, firewalls, and
encryption. The growing emphasis on data protection is driven by regulatory
requirements, industry standards, and the need to safeguard sensitive
information. As data breaches and cyber-attacks become more prevalent, the
market is seeing increased investment in both physical and digital security
solutions to ensure the integrity and reliability of data center operations.
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North America Data Center Construction Market"
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.
Based
on country, Canada is the fastest growing country in the North America Data Center
Construction Market during the forecast period. Canada’s strategic geographic
location offers distinct advantages for data center construction. The country’s
cool climate significantly reduces the need for energy-intensive cooling
systems, making it an attractive option for data center operators seeking to
minimize operational costs. Cooler temperatures lead to more efficient cooling
processes, thereby lowering overall energy consumption and enhancing
sustainability. This climate advantage positions Canada as a prime destination
for data center investments, particularly for those focused on energy
efficiency and cost reduction. Canada
has become a preferred choice due to its favorable regulatory environment and
government incentives. The Canadian government has implemented policies and
programs that support the development of digital infrastructure, including tax
incentives and grants for green energy projects. These supportive measures
encourage both domestic and international companies to invest in data center
construction and expansion within the country.
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.Top of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“North America Data Center Construction
Market By Type of Data Center (Hyperscale Data Centers, Colocation Data
Centers, Enterprise Data Centers, Edge Data Centers), By Construction Type (New
Construction, Expansion, Retrofit/Upgrade), By Power Capacity (Small Data
Centers, Medium Data Centers, Large Data Centers), By Service Type (Design
& Consulting, Construction & Installation, Project Management), By
End-User Industry (IT & Telecommunications, BFSI, Healthcare, Retail &
E-Commerce, Others), By Country,
Competition, Forecast and Opportunities, 2020-2030F” h,as evaluated the future growth
potential of North America Data Center Construction Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in North America Data Center Construction Market.
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