The U.S. data center construction market is experiencing significant growth, with a CAGR of 11.69% projected during 2023-2029, according to the latest research report from Arizton. This surge is being driven by the increasing demand for data storage and processing capabilities, as businesses continue to embrace digital transformation and cloud computing. Major players in the tech, real estate, and infrastructure sectors are investing heavily in building and upgrading data centers to meet this demand.
Key hubs for data center development have emerged across the country, with Northern Virginia leading the way as the renowned “Data Center Alley” due to its proximity to Washington D.C. and excellent connectivity. Silicon Valley remains a prominent location for data centers, benefiting from its tech-focused ecosystem. Dallas-Fort Worth has also become a significant hub in the Southwest U.S., offering cost-effective solutions and strategic geographic positioning. Meanwhile, Chicago is a major data center hub with its central location and robust network connectivity.
The market segmentation insight shows that core & shell development will contribute the largest market share, with the Northeastern region expected to see a surge in brownfield projects due to location constraints. Air-based cooling techniques are also set to occupy a major share in the market, reaching $3.60 billion by 2029. Innovations in cooling systems, such as using outside air for cooling without onsite water requirements, are driving market growth further.
Mergers and acquisitions (M&A) and joint venture (JV) activities in the U.S. data center market have also been on the rise. Recent examples include Amazon’s acquisition of a former insulation factory in Santa Clara, California, and the formation of Gigapower, LLC, a joint venture between AT&T and BlackRock. These activities are fueled by the expansion in cloud and edge computing, as well as the increasing reliance on digital infrastructure for data storage and processing capabilities.
The report covers various aspects of the data center construction market, including investment in different areas such as facility type, infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, general construction, tier standards, and geography. Key players in the market include data center support infrastructure providers like ABB, Caterpillar, and Schneider Electric, as well as data center contractors like AECOM, Corgan, and Turner Construction.
In conclusion, the U.S. data center construction market is poised for continued growth as businesses increasingly rely on data centers to power technologies like 5G, IoT, and AI. With ongoing investments and developments in the sector, the future looks bright for the data center construction market in the United States.
It seems like the article you are referring to is about the US data center construction market with a projected investment to reach $47.72 billion by 2029. This investment is expected to double in the next 6 years. The article does not specifically mention any of the states you listed (Alabama, Florida, Virginia, Texas, Tennessee) but rather discusses the overall trends and projections for the data center industry in the US.