U.S. Data Center Construction Market Poised to Surge, Led by AI Demand and Sustainable Innovations

The U.S. data center construction market is poised for substantial growth, driven by an increasing demand for artificial intelligence (AI) and the entry of new players. As of 2024, the market was valued at $48.18 billion and is forecasted to reach $112.33 billion by 2030, growing at a compound annual growth rate (CAGR) of 15.15%. Major global colocation operators such as Equinix, Digital Realty, QTS Realty Trust, CyrusOne, Aligned Data Centers, DataBank, Iron Mountain, Vantage Data Centers, and STACK Infrastructure are key players in this market. Market Dynamics and AI Influence The market has seen a surge in new entrants, including Bitcoin companies, which are now supporting AI workload deployments. This trend is particularly pronounced in key geographical regions where land and power resources are abundant, allowing these new entrants to thrive and compete effectively. Notable among these is Northern Virginia, which is expected to add over 9 gigawatts (GW) of data center capacity between 2025 and 2030, primarily due to contributions from Fairfax, Loudoun, and Prince William counties. AI's contribution to the data center market's growth has been significant, accounting for over 50% of market expansion in 2024. The emergence of advanced AI technologies like ChatGPT by OpenAI has shifted AI from a supportive role to a central driver of the industry. OpenAI itself increased its data center presence through collaborations with Oracle and the establishment of new facilities in Texas, which saw a data center capacity addition of around 350 megawatts (MW) in 2024, with colocation contributing over 60% of these additions. Geographical Analysis Northern Virginia This region is the dominant player in the U.S. data center market, with over 9 GW of additional capacity expected by 2030. The concentration of data center activity in counties such as Fairfax, Loudoun, and Prince William underscores its continued prominence. Texas Texas is the second-largest market, with cities like Dallas, Austin, Irving, San Antonio, and Houston attracting significant investments from both hyperscale self-built and colocation operators. The state added around 350 MW of data center capacity in 2024, with colocation facilities making a substantial contribution. Georgia Georgia, particularly the Atlanta area, has gained significant momentum. The market, transitioning from a Tier-II status to a key destination, is expected to add over 2.2 GW of capacity by 2030, thanks to the availability of land and power. Arizona Phoenix and surrounding areas like Mesa, Goodyear, and Chandler are becoming increasingly attractive for data center development. The region's better power availability, lower disaster risks, and cost efficiency make it a favorable choice. Illinois Key locations such as Chicago, Elk Grove Village, and Aurora are emerging as Midwest data center hubs. The strategic position of Chicago and the growing demand from cloud service providers are driving persistent growth. Oregon Portland and Hillsboro are among the fastest-growing markets, supported by abundant power, business-friendly tax policies, and cool climates, which facilitate sustainable cooling methods. New York/New Jersey These regions remain crucial for colocation facilities despite space constraints for hyperscale development. The Northeast is expected to see growth in edge data center facilities, particularly in areas with limited space. Sustainable and Innovative Practices To address the surge in demand and environmental challenges, data center operators are increasingly embracing innovative and sustainable practices. These include the use of energy-efficient infrastructure and carbon-free solutions to reduce operational costs and promote environmental responsibility. Nuclear Power Some operators are exploring nuclear power as a low-carbon energy source. In a notable move, Google partnered with Kairos Power to utilize small nuclear reactors for powering its AI data centers, aiming to deploy its first reactor by 2030. This partnership highlights the industry's commitment to sustainable, high-capacity power solutions. Sustainable Building Materials Microsoft, for example, utilized cross-laminated timber (CLT) in the construction of its Northern Virginia data centers, aiming to reduce the embodied carbon footprint by up to 35% compared to steel and 65% compared to concrete. This approach demonstrates the importance of sustainable materials in the industry’s future growth. Leading Hyperscale Operators Leading hyperscale operators like Amazon Web Services (AWS), Microsoft, Meta, and Google are continuously expanding their self-built presence across top U.S. data center markets. These companies are likely to coexist with colocation operators, further driving market expansion. Industry Insider Evaluation Industry experts predict that the integration of AI and the adoption of sustainable practices will be crucial for the future of the U.S. data center construction market. The entry of new players, especially those with significant land and power resources, indicates a healthy and competitive market environment. Major companies, including Google and Microsoft, are leading the way in sustainability, setting a benchmark for the industry. This growth trajectory not only meets the increasing technological demands but also aligns with the urgent need for environmentally responsible business practices. About the Companies: - Equinix: A global interconnection and data center company operating in multiple regions. - Digital Realty: Specializes in providing data center services and solutions worldwide. - Google: A leading technology company investing heavily in AI and sustainable energy sources for its data centers. - Microsoft: Committed to using sustainable building materials and renewable energy for data center operations. - AWS: Continues to expand its presence, focusing on scalable and efficient infrastructure. For detailed insights, the "U.S. Data Center Construction Market - Industry Outlook & Forecast 2025-2030" report by ResearchAndMarkets.com offers a comprehensive analysis of the market, covering key trends, opportunities, and restraints. The report spans 501 pages and provides the latest data on the international and regional markets, highlighting the critical role of these trends in shaping the future of the data center industry.