News
July 3, 2026

Arizton Forecasts Global Data Center Construction Investment to Reach $323.7 Billion by 2031

Construction Owners Editorial Team

Highlights

  • Arizton projects global data center construction investment will reach $323.72 billion by 2031.
  • The market is expected to grow at a 14.46% compound annual growth rate from 2025 through 2031.
  • Colocation facilities are projected to account for the largest share of construction spending.
  • Expansion activity is being driven by hyperscale cloud demand and digital infrastructure growth.
  • Power redundancy and advanced cooling systems remain major components of new facility development.

Data center construction activity continues to expand globally as cloud providers, hyperscale operators and colocation developers increase investment in digital infrastructure capacity. New market research from Arizton projects substantial growth in data center construction spending through the end of the decade, reflecting continued demand for high-capacity computing facilities and resilient power infrastructure.

The research firm estimates global investment in data center construction will rise from approximately $144 billion in 2025 to $323.72 billion by 2031.

Expansion of Colocation and Hyperscale Facilities

According to the report, colocation developments are expected to represent the largest segment of planned investment between 2026 and 2031. The sector is projected to account for more than $1 trillion in cumulative investment activity tied to new capacity, white floor space expansion and power infrastructure deployment.

Hyperscale facilities also remain a major driver of construction activity as cloud providers continue to expand regional and international footprints. Enterprise-owned facilities are projected to represent a smaller share of future investment as organizations migrate workloads to cloud and colocation environments.

The report identified North America, Europe, the Middle East and Asia-Pacific markets among the regions experiencing continued expansion in digital infrastructure construction.

Power and Cooling Infrastructure Demand

Electrical resiliency and thermal management systems remain central to data center project planning as operators seek to support higher-density computing environments and uptime requirements.

The report noted growing adoption of high-capacity uninterruptible power supply systems featuring N+1, N+N and 2N redundancy configurations. Backup generation systems also continue to play a major role in facility design despite increasing focus on sustainability and energy efficiency.

Cooling technologies, including direct evaporative systems, chiller-based configurations and hot-aisle containment strategies, are being incorporated into large-scale developments to improve operational efficiency and reliability.

Digital Infrastructure Construction Trends

Rising demand for artificial intelligence workloads, cloud computing and edge infrastructure has accelerated procurement and construction activity across the global data center sector. Contractors, developers and equipment suppliers are seeing increased opportunities tied to mission-critical facility delivery, electrical systems installation and mechanical infrastructure integration.

Large-scale data center developments also continue to influence regional utility planning, land acquisition strategies and industrial construction pipelines in major markets.

Why It Matters

For contractors and developers, sustained growth in data center construction represents one of the largest long-term opportunities within the industrial and mission-critical construction sectors. Projects typically require specialized expertise in power systems, mechanical infrastructure, structural engineering and phased construction delivery.

The forecast also highlights the increasing importance of resilient electrical infrastructure and energy-efficient cooling systems as owners and operators scale facilities to meet rising digital demand worldwide.

Source: Yahoo Finance.

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