Global Data Center Construction Market Set for $324 Billion Boom by 2031
Event summary
- Global data center construction market to grow from $144 billion in 2025 to $323.72 billion by 2031, a CAGR of 14.46%.
- Investments surged 56% year-over-year from 2024 to 2025.
- Colocation data centers lead with $1.06 trillion in investments and 98,809 MW of power capacity by 2031.
- AI workloads driving demand for higher rack densities, GPU-ready environments, and liquid cooling systems.
The big picture
The surge in data center construction reflects the relentless expansion of hyperscale operators and cloud providers, driven by AI workloads requiring more resilient infrastructure. The market's rapid growth underscores the strategic importance of digital infrastructure, with colocation leading investments as enterprise data centers decline. Regional dynamics, particularly in APAC and Europe, highlight localized advantages like renewable energy access shaping global investment patterns.
What we're watching
- AI Infrastructure Demand
- How AI workloads will affect the pace of hyperscale data center construction.
- Regional Investment Shifts
- Whether APAC and Europe can sustain their rapid investment growth in data centers.
- Sustainability vs. Resilience
- The balance between advanced cooling systems and backup power solutions in new constructions.
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