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Global Data Center Construction Market Size, Share, Trends, and Forecast 2026-2031 | AI and Cloud Demand Drive 14.45% CAGR and a $323.72 Billion Market by 2031

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GOOGL Google is mentioned as a recipient of renewable energy from TotalEnergies and is making significant investments in AI and cloud infrastructure in Germany, indicating expansion and commitment to sustainability in data centers. AMZN Amazon has secured significant wind power agreements in Finland, highlighting its commitment to renewable energy for its data center operations, which are crucial for AI and cloud workloads. EQIX Equinix's Stockholm facilities operating on 100% renewable energy are highlighted as an example of sustainable data center development, aligning with the growing demand for AI and cloud infrastructure. MSFT Microsoft is expanding its AI and cloud infrastructure capacity in Germany, demonstrating growth and investment in the data center sector driven by AI demand. META Meta plans a substantial investment of approximately $600 billion in US digital infrastructure over three years, signaling aggressive expansion in data centers driven by AI and other digital demands. CAT Caterpillar is mentioned as an infrastructure provider for the data center construction market, suggesting its involvement in supplying equipment for power generation and other critical systems. ETN Eaton is identified as an infrastructure provider within the data center construction market, suggesting its contribution to power management and distribution solutions. LEG Legrand is mentioned as an established infrastructure provider for the data center construction market, indicating its role in supplying electrical and network infrastructure. VRTX Vertiv is listed as an infrastructure provider in the data center construction market, suggesting its role in thermal management, power, and IT infrastructure solutions. J Jacobs is listed as a contractor in the data center construction market, suggesting its role in providing engineering and construction services for these facilities.

Global Data Center Construction Market Size, Share, Trends, and Forecast 2026-2031 | AI and Cloud Demand Drive 14.45% CAGR and a $323.72 Billion Market by 2031 Dublin, Sept. 29, 2026 (GLOBE NEWSWIRE) -- "Global Data Center Construction Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.

The global data center construction market was valued at USD 144.00 billion in 2025 and is projected to reach USD 323.72 billion by 2031, expanding at a CAGR of 14.45%. Growth is being driven by accelerating artificial intelligence adoption, cloud migration, hyperscale expansion, rising data consumption, and demand for high-density computing infrastructure.

Data Center Construction Market Segmentation Insights

Colocation data centers are expected to lead the market across investment, white floor space, and power capacity during 2026-2031. The segment is projected to attract approximately $1.06 trillion in investment, add 412.32 million sq. ft. of white floor space, and account for 98,809 MW of power capacity. Hyperscale data centers represent the second-largest segment, with projected investments of $473.33 billion and 44,682 MW of capacity. Enterprise facilities hold a smaller share as organizations continue shifting workloads from on-premises infrastructure to cloud, hyperscale, and colocation environments.

Operators are deploying high-capacity UPS systems exceeding 750 kVA, supported by N+1, N+N, and 2N redundancy. Generators also remain critical where grid reliability and power availability present operational risks. At the same time, facilities are adopting cleaner backup power technologies, advanced cooling systems, liquid-based cooling, cold aisle containment, and designs aligned with ASHRAE guidelines and Uptime Institute Tier standards.

AI Infrastructure Drives Data Center Development

AI is transforming data center design by increasing rack power density, cooling requirements, and overall campus capacity. AI-ready facilities are being engineered to support GPU, ASIC, and FPGA deployments, with greater use of liquid cooling and energy-efficient electrical infrastructure. Hyperscale capacity dedicated to AI workloads is expected to nearly triple over the next five to six years.

Renewable Energy and Data Center Sustainability

Increasing AI and cloud workloads are intensifying electricity and cooling demand, making sustainability a central consideration in global data center construction. Operators are securing renewable power purchase agreements, investing in on-site solar and wind generation, deploying battery storage, and improving water and energy efficiency.

In November 2025, TotalEnergies signed a 15-year agreement to provide Google with 1.5 TW-hours of renewable energy from an Ohio solar farm. The Nordic region continues to attract hyperscale development through abundant low-carbon electricity. Equinix's Stockholm facilities operate on 100% renewable energy, EcoDataCenter's Falun campus uses wind and hydropower, and Amazon has secured 472 MW of wind power agreements in Finland.

Latin America is also strengthening its renewable energy position, while the UAE is targeting zero carbon emissions by 2050 and a renewable energy share of 50% within its energy mix. Across the market, AI data centers are expanding sustainability priorities beyond Power Usage Effectiveness (PUE) to include water consumption, carbon-free energy procurement, waste heat reuse, grid-responsive operations, and lifecycle impact.

Regional Data Center Construction Market Outlook

Competitive Landscape

The global data center construction market includes major investors and operators such as Amazon Web Services (AWS), Apple, CyrusOne, DataBank, Digital Realty, EdgeConneX, Equinix, Google, Iron Mountain, Meta, Microsoft, NTT DATA, QTS Realty Trust, STACK Infrastructure, ST Telemedia Global Data Centres (STT GDC), Switch, and Vantage Data Centers.

Recent commitments include Google's $6.38 billion (€5.5 billion) investment in Germany, Microsoft's expansion of AI and cloud infrastructure capacity in Germany, and Meta's planned investment of approximately $600 billion in US digital infrastructure over three years. The market also features established infrastructure providers including ABB, Caterpillar, Cummins, Eaton, Legrand, Schneider Electric, Siemens, Stulz, and Vertiv, alongside contractors such as AECOM, Arup, DPR Construction, Jacobs, Mace, Turner Construction, and Turner & Townsend.

Market Segmentation Covered

Key Questions Addressed

Key Attributes:

For more information about this report visit https://www.researchandmarkets.com/r/wsa1k6

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