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Data Center Construction Market to Hit $431.39B by 2031 as Colocation Operators Capture 54% Revenue Share in 2025, Says Mordor Intelligence

globenewswire.com
HPQ Mentioned as a major company in the Network Attached Storage market, which is projected to grow significantly. No specific positive or negative news about HPQ itself. DELL Identified as a major player in both the Network Attached Storage and Modular Data Center markets, both of which are experiencing growth. No specific sentiment towards Dell itself. NTAP Listed as a major company in the growing Network Attached Storage market. The article does not provide specific details or sentiment regarding NetApp's performance or outlook. WD Mentioned as a major company in the Network Attached Storage market, which is expected to grow. The article does not offer specific commentary or sentiment on Western Digital. IBM Listed as a major company in the Modular Data Center market, which is projected for strong growth. The article does not provide specific positive or negative sentiment for IBM. HPE Identified as a major company in the Modular Data Center market, which is experiencing significant growth. The article does not provide specific sentiment for HPE.

Data Center Construction Market to Hit $431.39B by 2031 as Colocation Operators Capture 54% Revenue Share in 2025, Says Mordor Intelligence Hyderabad, India, March 05, 2026 (GLOBE NEWSWIRE) -- According to a new report published by Mordor Intelligence, the data center construction market size was valued at USD 281.34 billion in 2025 and is projected to grow from USD 300.38 billion in 2026 to USD 431.39 billion by 2031, registering a CAGR of 7.51% during the forecast period (2026–2031). The report highlights how the increasing demand for digital infrastructure, hyperscale cloud facilities, and AI-driven computing environments is accelerating investments in data center development worldwide.

The data center construction market growth is being fueled by rapid digital transformation across industries, increasing enterprise cloud adoption, and expanding colocation infrastructure. As organizations continue migrating workloads to cloud platforms and deploying high-performance computing systems, the data center construction industry is witnessing significant expansion in both developed and emerging economies.

Key Trends Shaping the Data Center Construction Market

Powered Land Developments Accelerating Data Center Projects

Developers are increasingly preparing large sites with essential infrastructure such as power connections, fiber networks, and regulatory approvals before tenants commit to construction. This “powered land” approach helps companies start building data centers much faster by removing long approval and utility setup timelines. As demand for digital infrastructure grows, sites that are ready for immediate development are becoming highly attractive to cloud providers and hyperscale operators. However, successful projects still depend on the availability of reliable connectivity and utility support, as power readiness alone may not be enough to secure tenant interest.

Rising AI and Cloud Workloads Reshaping Data Center Infrastructure

The rapid expansion of cloud services, artificial intelligence applications, and large-scale data analytics is transforming the way data centers are designed and built. Modern computing environments now require significantly higher power density and advanced cooling systems to support intensive workloads. Technology companies are investing heavily in large hyperscale campuses that provide greater operational flexibility and capacity to handle unpredictable computing demand. At the same time, the industry faces a shortage of specialized technicians capable of deploying next-generation cooling and power systems. As a result, developers who collaborate early with experienced infrastructure and cooling partners often gain a competitive advantage in delivering projects faster within the evolving data center construction market.

“Our analysis indicates that sustained investment in hyperscale campuses and colocation facilities continues to shape global data center construction activity, with project pipelines expanding as digital infrastructure demand rises,” says Ashish Gautam, Senior Research Manager at Mordor Intelligence. “We apply a consistent, data-validated research framework and cross-check industry inputs, giving decision-makers a dependable view of market direction and capital planning.”

Table of Contents for Data Center Construction Industry Report

1. INTRODUCTION

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/data-center-construction-market?utm_source=globenewswire

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

6. COMPETITIVE LANDSCAPE

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

For details on major players in the data center construction market, visit - https://www.mordorintelligence.com/industry-reports/data-center-construction-market/companies?utm_source=globenewswire

Regional Expansion in the Data Center Construction Industry

North America continues to be a major hub for data center development as global technology companies invest heavily in large-scale digital infrastructure. Strong cloud adoption, the presence of hyperscale providers, and access to advanced connectivity networks are supporting new facility construction across the region. At the same time, sustainability regulations and energy efficiency standards are increasingly influencing how new data centers are designed and operated.

Asia-Pacific is also witnessing rapid expansion as digital services, e-commerce platforms, and cloud adoption accelerate across emerging economies. Governments and international technology firms are investing in localized data infrastructure to meet data sovereignty requirements and growing internet usage. In several markets across the region, space constraints and rising demand are encouraging the adoption of high-density computing environments and advanced cooling technologies.

Related Reports by Mordor Intelligence

Network Attached Storage Market Size

The Network Attached Storage (NAS) market was valued at USD 39.62 billion in 2025 and is projected to grow from USD 46.32 billion in 2026 to USD 101.24 billion by 2031, at a CAGR of 16.93%. Growth is driven by increasing enterprise data volumes, rising cloud adoption, and the need for centralized and scalable storage solutions across organizations.

Hewlett-Packard Development Company, Dell Technologies Inc., NetApp Inc., Synology Inc., and Western Digital Corp. are the major companies operating in this market.

Read more about companies active in the Network Attached Storage Market:

https://www.mordorintelligence.com/industry-reports/network-attached-storage-nas-market/companies?utm_source=globenewswire

United States Data Center Market Report

The United States data center market is estimated at USD 122.08 billion in 2026, growing from USD 114.48 billion in 2025, and is projected to reach USD 168.34 billion by 2031, at a CAGR of 6.64%. Expansion is supported by increasing investments in hyperscale facilities, cloud infrastructure, and AI-driven computing workloads.

Modular Data Center Market Share

The modular data center market was valued at USD 41.35 billion in 2025 and is expected to grow from USD 42.65 billion in 2026 to USD 101.22 billion by 2031, registering a CAGR of 18.87%. Demand is rising as organizations seek flexible, scalable, and rapidly deployable data center solutions to support digital transformation and edge computing.

IBM Corporation, Huawei Technologies Co. Ltd, Baselayer Technology LLC, Dell Technologies Inc., and Hewlett-Packard Enterprise Co. are the major companies operating in this market.

Read more about companies active in the Modular Data Center Market:

https://www.mordorintelligence.com/industry-reports/modular-data-center-market/companies?utm_source=globenewswire

About Mordor Intelligence

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.