United States Data Center Construction Market Report by Tier Type, Infrastructure, Vertical, States and Company Analysis, 2026-2034

United States Data Center Construction Market Size and Forecast

United States Data Center Construction Market will grow from US$ Billion in 2025 to US$ Billion in 2034, at a Compound Annual Growth Rate of % from 2026–2034. Market expansion will be driven by increasing AI and cloud computing workloads, hyperscale data center development, rising data consumption, and growing digital infrastructure investments. Demand for high-density computing, advanced cooling systems, energy-efficient facilities, and resilient infrastructure will further support construction activity across major U.S. data center regions.

What Is the United States Data Center Construction Market and Its Uses & Popularity?

The United States data center construction market covers the development, expansion, modernization, and upgrading of facilities used to house servers, storage systems, networking equipment, power infrastructure, cooling systems, security systems, and other digital infrastructure. Data centers support cloud computing, artificial intelligence (AI), machine learning, enterprise applications, streaming, e-commerce, financial services, telecommunications, and digital government services. Demand is particularly strong for hyperscale, colocation, enterprise, and high-density AI facilities.

The market is expanding rapidly because companies require greater computing and storage capacity. CBRE reported that primary North American data-center supply increased 36% year over year to 9,432 MW in 2025, while vacancy fell to a record-low 1.4%. Net absorption reached 2,497.6 MW, demonstrating strong demand for newly constructed capacity. AI workloads are further increasing requirements for high-density computing, advanced liquid cooling, larger power blocks, and resilient infrastructure, making data-center construction a critical component of the U.S. digital economy.

Digital Infrastructure launches in USA Government

The U.S. National Science Foundation announced launch of the NSF Open Knowledge Network (NSF OKN), a national open-data infrastructure that links 43 interconnected knowledge graphs and tens of billions of connected facts across health, the environment, justice, manufacturing, and national security. The network is live and open to the public at okn.us. NSF OKN provides a structured, persistent, verifiable knowledge layer to complement contemporary artificial intelligence models, providing grounding of facts, attribution, and knowledge governance essential to critical AI applications in a number of fields. OKN's value goes beyond machines querying structured knowledge: Its deeper value provides AI systems with a shared, explicit, interoperable, and auditable representation of the world on which they are expected to reason and act.

The National Nuclear Security Administration (NNSA) announces a significant milestone in its digital modernization efforts with the establishment of a Secret/Restricted Data (S/RD) Enterprise Cloud environment in collaboration with Amazon Web Services (AWS). The S/RD Enterprise Cloud environment represents a transformative step in NNSA's mission to modernize its digital infrastructure while connecting its geographically dispersed sites into a unified, secure digital ecosystem.

Growth Driver in the Market

Rapid Expansion of Artificial Intelligence and High-Density Computing

The rapid adoption of artificial intelligence is one of the strongest drivers of U.S. data-center construction. Generative AI, machine learning, large language models, inference, and accelerated computing require substantially more computing capacity than many traditional workloads. Berkeley Lab’s 2025 U.S. Data Center Energy Usage Report found that U.S. data-center electricity consumption increased 14% between 2023 and 2024, with GPU- and ASIC-accelerated servers contributing to the increase. The report’s reference case projects another 22% increase in electricity consumption from 2024 to 2025 and 29% from 2025 to 2026. Demand is translating directly into new construction and expansion of existing facilities. CBRE reported that primary-market data-center capacity under construction reached 5,994.4 MW at the end of 2025, while 74.3% of capacity under construction had already been preleased in H1 2025.  AI infrastructure also requires specialized designs, including high-density racks, liquid cooling, upgraded electrical systems, and larger power capacity. These requirements are encouraging developers to build new AI-ready campuses and retrofit existing facilities, supporting sustained construction spending across major U.S. markets.

Growing Cloud Computing, Digital Services, and Hyperscale Capacity Requirements

Expansion of cloud computing and digital services is creating sustained demand for new U.S. data-center facilities. Cloud providers, hyperscalers, enterprises, streaming platforms, financial institutions, retailers, and software companies continue increasing their requirements for computing, storage, networking, and geographically distributed infrastructure. The scale of demand was reflected in 2025 market performance: CBRE reported 2,497.6 MW of net absorption across eight primary North American data-center markets, up 38% from 1,809.5 MW in 2024. Total supply simultaneously increased 36% to 9,432 MW, yet vacancy still declined to only 1.4%. This tight supply-demand environment encourages developers to accelerate new construction, expand existing campuses, and secure future capacity through preleasing. Northern Virginia alone recorded 1,102 MW of net absorption in 2025, while Dallas-Fort Worth absorbed 470.8 MW. Data-center construction is also spreading beyond traditional hubs as developers search for available land, power, and suitable connectivity. Markets including Atlanta, Texas, Pennsylvania, Nevada, and Michigan are gaining attention. As cloud applications and digital services become more distributed, demand for regional facilities and lower-latency infrastructure is expected to support continued construction.

Rising Investment in Digital Infrastructure and Power-Ready Facilities

Over the preceding decade, spending increased by about 900%, reflecting the combined influence of AI, cloud adoption, and broader digitalization. Power availability has become a central factor in determining where new facilities are built. Developers increasingly prioritize sites with access to large, reliable electricity supplies, transmission infrastructure, and opportunities for on-site generation. Goldman Sachs estimated that U.S. data-center power demand could rise from 31 GW in 2025 to 66 GW in 2027, more than doubling in two years, primarily because of AI infrastructure growth. The construction market is therefore evolving toward large-scale, power-intensive campuses designed for AI and hyperscale workloads. Investments in substations, backup generation, cooling, energy management, and resilient electrical infrastructure are creating additional construction opportunities and increasing the value of power-ready sites.

Power Availability, Grid Constraints, and Lengthy Infrastructure Timelines

Power availability represents a major challenge for U.S. data-center construction because new AI and hyperscale facilities require enormous amounts of electricity. Developers may secure land and financing but still face delays while waiting for utility interconnections, transmission upgrades, substations, and additional generation capacity. CBRE reported that power availability and infrastructure delivery timelines were among the most decisive factors affecting U.S. data-center site selection in 2025. The scale of potential demand illustrates the challenge. Goldman Sachs projected U.S. data-center power demand could increase from 31 GW in 2025 to 66 GW in 2027. It also estimated that only approximately 50%–60% of data-center capacity scheduled for the following one to two years could come online on time because of delays and cancellations. Reuters reported that several U.S. utilities had received data-center power requests exceeding their existing peak capacity, illustrating the pressure placed on electricity infrastructure. These constraints can extend project schedules, increase development costs, and shift construction toward regions with faster access to power.

Rising Construction Costs, Skilled-Labor Shortages, and Permitting Delays

Increasing construction costs, limited skilled labor, equipment availability, zoning requirements, and lengthy permitting processes can constrain the pace of U.S. data-center development. Modern facilities require specialized electrical, mechanical, cooling, networking, security, and building systems, while AI facilities require substantially higher power densities and more advanced cooling technologies. These requirements increase project complexity and the amount of specialized labor needed. CBRE reported that total primary-market capacity under construction declined from 6,350.1 MW at the end of 2024 to 5,994.4 MW at the end of 2025, marking the first decline in construction activity since 2020. The company attributed extended project timelines partly to permitting, zoning approvals, and difficulties securing adequate power. CBRE also noted that construction-worker shortages are encouraging community colleges and technical schools to expand mechanical, electrical, and plumbing training programs. Rising input costs add another layer of pressure: The Conference Board identified escalating input costs, longer construction lead times, and power-infrastructure constraints as key risks associated with the rapid U.S. data-center buildout.

Data Center Construction Launches in USA

1. Meta Bowling Green Data Center – Ohio, 2025
   Meta announced its new 715,000-square-foot data center in Bowling Green, Ohio, in April 2025. The project represents an investment of more than US$800 million and is expected to employ more than 1,000 construction workers at peak. The facility will support Meta’s expanding digital and AI infrastructure.
2. Meta El Paso Data Center – Texas, 2025
   Meta broke ground on a new data center in El Paso, Texas, backed by a US$1.5 billion investment. The campus is designed to scale to approximately 1 GW and is expected to come online in 2028. Peak construction employment is projected at approximately 1,800 workers, demonstrating the scale of AI-oriented data center construction.
3. Oracle/OpenAI Stargate Data Center – Michigan, 2026
   Oracle, OpenAI, and partners began construction of the Stargate data center campus in Saline Township, Michigan, in June 2026. The project, known as “The Barn,” is planned for approximately 1 GW of capacity and is estimated at around US$10 billion. The first of three planned buildings measures approximately 550,000 square feet.
4. Iron Mountain RCH-1 Data Center Campus – Virginia, 2026
   Iron Mountain and Clark Construction broke ground on a new data center campus in Sandston, Virginia, in July 2026. The 66-acre development is planned to deliver more than 200 MW of total capacity and exceed 1.1 million square feet when fully developed. The campus is designed for hyperscale, neocloud, and AI workloads.
5. Microsoft Atlanta AI Data Center – Georgia, 2025
   Microsoft unveiled construction of a new data center in Atlanta, Georgia, in 2025 as part of its expansion of AI and cloud infrastructure. The facility is planned alongside Microsoft’s Wisconsin infrastructure to support large-scale AI computing and supercomputing workloads using advanced accelerator hardware.
6. Meta Monroe Data Center Campus – Louisiana, 2025
   Meta’s planned data center campus near Monroe, Louisiana, represents an investment exceeding US$10 billion. The custom-designed campus is planned at approximately 4 million square feet, with more than 5,000 construction workers expected at peak. The project is designed to support Meta’s expanding AI computing requirements.
7. Meta Jeffersonville Data Center Campus – Indiana
   Meta’s Jeffersonville, Indiana campus is among its U.S. data center developments supporting the company’s expansion of computing infrastructure. The project was awarded to Turner Construction and forms part of Meta’s broader U.S. campus-development program, alongside projects in Minnesota, Alabama, Wyoming, and South Carolina.
8. Meta Rosemont Data Center – Minnesota
   Meta selected Rosemont, Minnesota, for another major U.S. data center campus as part of its expanding infrastructure network. The development was awarded to Mortenson and is among a group of projects that Meta identified as representing approximately US$800 million each. The projects are intended to increase computing capacity for Meta’s global services and AI workloads.
9. Meta Montgomery Data Center – Alabama
   Meta’s Montgomery, Alabama, data center development is another major campus in the company’s U.S. expansion program. Hensel Phelps was selected for the project, which was included among Meta’s approximately US$800 million campus investments announced in 2024 and developed as part of its continuing data center construction pipeline.
10. U.S. Department of Energy AI/Data Center Sites – 2025
    The U.S. Department of Energy announced in April 2025 that it had identified 16 federal sites for potential data center and AI infrastructure development. The locations were selected because of existing energy infrastructure and the potential to accelerate permitting for additional generation. The initiative demonstrates the growing focus on combining data center construction with new energy infrastructure to address rapidly increasing AI power requirements.

California Strong Data Center Base and Technology Ecosystem

California remains a major U.S. data center construction market because of its technology concentration, enterprise demand, cloud infrastructure, and extensive digital connectivity. The California Energy Commission reports that the state has more than 200 active data centers, making it one of the largest data center markets in the country. In early 2026, data centers represented approximately 1,000 MW, or 2% of California ISO peak electricity demand, with demand projected to reach 4,500 MW, or 9% of peak demand by 2040. Silicon Valley continues to attract hyperscale, cloud, and enterprise projects, although expansion is constrained by electricity availability and construction costs. CBRE reported 489.2 MW of inventory in H2 2025, up 4% year over year, while 144 MW was under construction, with 84% already preleased. California’s clean-energy objectives encourage efficient cooling, renewable power integration, and lower-carbon facility designs. However, high electricity costs, permitting requirements, land constraints, and grid capacity remain important considerations for developers.

Texas Rapid Hyperscale and AI Expansion

Texas has become one of the fastest-growing U.S. data center construction markets, supported by large land parcels, substantial energy resources, major metropolitan areas, and strong demand from hyperscalers and AI providers. Dallas-Fort Worth is particularly important, with CBRE reporting 869.5 MW of existing data center inventory in H1 2025, representing a 47% year-over-year increase. An additional 425.1 MW of colocation capacity was under construction, and 78% was already preleased. Dallas-Fort Worth construction activity is expected to substantially expand regional capacity, while unprecedented land inquiries and power requests demonstrate strong developer interest. Texas’s central location also supports connectivity with major U.S. markets. Rapid expansion is increasingly constrained by electricity infrastructure. In September 2026, Texas temporarily halted new state-issued data center permits while the state’s grid impact was audited; reported projects seeking grid connections exceeded 470 GW, illustrating the scale of development requests relative to current demand. Extreme heat, severe weather, water availability, and grid reliability further influence construction and operating strategies.

New York Financial and Enterprise Demand

New York remains a strategically important data center construction market because of its concentration of financial institutions, media companies, enterprises, and digital services. The New York Tri-State area is classified by CBRE among the eight primary North American data center markets, alongside Northern Virginia, Dallas-Fort Worth, Silicon Valley, Chicago, Phoenix, Atlanta, and Hillsboro. Demand is supported by proximity to major East Coast business centers and the need for secure, low-latency infrastructure. Developers are increasingly incorporating energy-efficient cooling, resilient power systems, modular construction, and high-density infrastructure to accommodate cloud and AI workloads. High land and real-estate costs, permitting requirements, power availability, and infrastructure-delivery timelines can affect project schedules and development economics. CBRE reported that power availability and infrastructure delivery timelines were among the most decisive factors influencing data center site selection across major U.S. markets in H1 2025.

Florida Growing Digital Infrastructure Demand:

Florida is gaining importance as a data center construction location because of population growth, expanding digital services, enterprise activity, and its strategic connectivity with Latin American markets. Miami and Orlando are important locations for colocation, cloud, and enterprise infrastructure, while Florida’s broader business environment supports continued technology investment. Data center construction in Florida increasingly emphasizes hurricane-resistant structures, redundant power systems, backup generation, advanced cooling, and disaster-recovery capabilities. High humidity and extreme weather conditions make facility design and equipment protection particularly important. Across North American markets, developers increasingly prioritize locations with available electricity, land, and infrastructure. CBRE reported that power availability and infrastructure-delivery timelines were major determinants of data center site selection during H1 2025. Florida’s connectivity advantages and expanding digital economy therefore support continued investment, although developers must account for weather resilience, energy requirements, permitting, and construction costs.

Market Segmentations

Tier Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

Infrastructure

• IT Infrastructure
• Miscellaneous Infrastructure
• PD & Cooling Infrastructure

Vertical

• IT & Telecom
• BFSI
• Healthcare
• Government & Defense
• Energy
• Others

States

• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• New Jersey
• Washington
• North Carolina
• Massachusetts
• Virginia
• Michigan
• Maryland
• Colorado
• Tennessee
• Indiana
• Arizona
• Minnesota
• Wisconsin
• Missouri
• Connecticut
• South Carolina
• Oregon
• Louisiana
• Alabama
• Kentucky
• Rest of United States

All the Key players have been covered

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Company Analysis:

• AECOM
• Whiting-turner Contracting Company
• Turner Construction Co.
• Jacobs Solutions Inc.
• DPR Construction
• Skanska USA
• Balfour Beatty US
• Hensel Phelps

Report Details: