The U.S. data center construction market is expected to expand significantly over the next several years, driven by rising demand for artificial intelligence infrastructure and high-performance computing facilities.
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According to a new report from Research and Markets, the sector is projected to grow from $83.97 billion in 2025 to $154.49 billion by 2031, representing a compound annual growth rate (CAGR) of 10.7%.
The surge in investment reflects the growing need for hyperscale facilities capable of supporting large-scale AI workloads, which require significantly more computing power than traditional data processing systems.
The rapid adoption of artificial intelligence across industries is expected to dramatically expand hyperscale data center capacity in the coming years.
Major technology companies including Apple, Amazon Web Services, Google, Meta Platforms and Microsoft are among the leading investors shaping the data center construction landscape.
Industry analysts say AI workloads could nearly triple the capacity requirements of hyperscale data centers within the next five to six years, prompting operators to design facilities specifically optimized for high-density AI computing.
Companies such as Digital Realty, Equinix, CyrusOne, DataBank, NTT and Vantage Data Centers are expanding facilities to meet this demand.
A key factor behind the market’s growth is the rapid increase in GPU deployment for AI processing.
AI-based data centers rely heavily on graphics processing units because they can perform massively parallel computations, allowing companies to train and run AI models far more efficiently than traditional processors.
The growing need for GPU-powered facilities is also pushing developers to build high-density, scalable data center campuses capable of handling intensive AI training and real-time inference workloads.
For example, cloud infrastructure company Lambda is developing a next-generation AI data center in Kansas City that will host more than 10,000 NVIDIA Blackwell Ultra GPUs as part of a phased expansion.
As AI workloads dramatically increase computing power requirements, data centers are also facing rising challenges related to heat generation and energy consumption.
To address these issues, operators are investing in advanced cooling technologies designed to support high-density computing environments.
These solutions include:
The market is also seeing an increase in partnerships between data center operators, chip manufacturers, cooling technology providers and energy companies to develop more sustainable infrastructure.
In one major agreement announced in 2025, Switch and Schneider Electric signed a $1.9 billion cooling infrastructure deal, the largest data center cooling contract in North America.
Under the partnership, Schneider Electric will provide prefabricated power modules and Uniflair chiller systems for Switch facilities across the United States.
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Growth in the U.S. data center construction market is expected to be widespread, with strong development activity in multiple regions.
The report highlights particularly strong expansion potential in:
These regions are attracting new projects due to land availability, power access, and favorable regulatory environments, making them attractive destinations for large-scale data center investments.
Industry experts say artificial intelligence will remain the dominant force driving data center development through the end of the decade.
As organizations increasingly rely on AI, machine learning and Internet of Things technologies, computing infrastructure must scale rapidly to meet performance requirements.
This trend is expected to support continued investment in hyperscale facilities, advanced cooling systems and energy-efficient data center design, ensuring the sector remains one of the fastest-growing segments of the digital infrastructure market.
Originally reported by Research and Markets in Yahoo Finance.
