Data Center EPC Market Revenue to Attain USD 86.95 Bn by 2035

Data Center EPC Market Revenue and Trends 2026 to 2035

The global data center EPC market revenue surpassed USD 28.50 billion in 2025 and is predicted to attain around USD 86.95 billion by 2035, growing at a CAGR of 11.80%. The market is driven by the rapid adoption of cloud computing, AI applications, streaming video services, and digital transformation within enterprises.

Market Overview

The data center EPC market includes engineering, procurement, and construction services necessary to build data centers from scratch. The steps involved in the construction of data centers include site selection, civil works, power distribution, cooling network infrastructure, fire suppression, and security systems. This market encompasses large-scale computing centers owned by cloud service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud.

This market also involves colocation facilities where multiple clients lease space, edge data centers near end-users to enable latency-sensitive applications, and expansion of existing facilities. All the phases in a data farm development project, from feasibility, permitting, and design, procurement of equipment and materials, through construction and testing, to handling over the data center, are under the purview of this market.

What are the Major Drivers of the Data Center EPC Market?

Adoption of Liquid Cooling Solutions

There is a rising adoption of direct-to-chip liquid cooling solutions, whereby the coolant is supplied to cold plates directly mounted on the processor and graphics chips in order to absorb heat in an efficient manner. AI and high-performance computing chips have high power requirements, which result in the production of a lot of heat that cannot be cooled through air conditioning systems without the consumption of excess energy. In 2025, EdgeConneX reported that it is constructing a single-tenant, 23-megawatt data center in Chicago utilizing Lambda’s hybrid cooling solutions, including both liquid-to-chip direct cooling and air-cooling systems.

Usage of Prefabricated Modular Construction

There is an emerging trend of using prefabricated modular construction process, which involves constructing entire modules that include electrical switchgear systems, generator systems, chiller plants, and IT infrastructure in factories and shipping to sites for assembly. With prefabrication, the process takes significantly less time since civil work and foundation work take place concurrently with the manufacturing of mechanical and electrical equipment in the factories. In 2025, Siemens Smart Infrastructure and Delta Electronics launched a global partnership in developing modular power systems for data centers consisting of integrated UPS systems, switchgear, battery, and cooling, which significantly reduces the construction time.

Government Initiatives Promoting Data Center Construction and Sustainability

Governments across the globe have taken initiatives to speed up the process of data center approvals and ensure that new facilities adhere to stringent sustainability norms. Data centers consume an immense amount of electricity and water; thus, they are becoming culprits of negative environmental impact. This necessitates the establishment of new policies regarding sustainability.

In 2026, U.S President Donald Trump signed Executive Order 14318 entitled “Accelerating Federal Permitting of Data Center Infrastructure”. This executive order instructed the Environmental Protection Agency and other government organizations to streamline environmental assessments, provide categorical exclusions from NEPA, and facilitate data center construction on brownfield and Superfund sites.

Rising Global Infrastructure Investments and Power Demand Driving Growth in the Data Center EPC Market

• The US continues to lead the world as the biggest market for data center development, with the International Energy Agency saying that over the 2016-30 period, US electricity demand is forecast to increase by more than 420 TWh, with around 50% of it coming from data centers, creating massive EPC projects between 2024 and 2026.
• In 2025, data center construction investments hit a new high of USD 61 billion globally, according to data from S&P Global reported by The Guardian, reflecting a global data center building boom in response to AI EPC infrastructure services demand.
• The International Energy Agency estimates global data center electricity demand will reach nearly 1,000 TWh by 2026, driving faster integration of solar, wind, storage, and low-carbon grid connections with new EPC data center development.

Market Segmentation Overview

• By Service Type: The construction services segment led the data center EPC market with a 40% share in 2025. This is because these services are required for new data center construction. Construction involves all phases, including clearing the site, pouring concrete, erecting structural steel, roof, exterior finishes, and interior finishes.
• By Service Type: The integrated EPC contracts segment is expected to expand at the highest CAGR during the forecast period, since large-scale cloud companies and corporate giants tend to favor a situation where all the engineering, procurement, and construction services are delivered by the same contractor.
• By Data Center Type: The hyperscale data centers segment dominated the data center EPC market with a 40% share in 2025, as organizations such as Amazon, Microsoft, Google, and Meta are constructing huge data center complexes comprising multiple computing center buildings each worth hundreds of millions of dollars.
• By Data Center Type: The colocation data centers segment held the second-largest market share of 30% in 2025, because colocation service providers like Equinix, Digital Realty, CyrusOne, and QTS construct multi-tenant data centers where a number of small businesses could lease a cabinet or group of servers for themselves.
• By Infrastructure Type: The electrical infrastructure segment led the market with a 40% share in 2025, since every data center requires sophisticated electrical equipment such as switchgear, transformers, generators, UPS systems, power distribution systems, and transfer switches.
• By Infrastructure Type: The mechanical infrastructure segment held the second-largest market share of 35% in 2025. This is because all data centers require cooling facilities, which include chillers, pumps, cooling towers, computer room air conditioning, and liquid cooling distribution systems, and other such mechanical components.
• By End-Use Industry: The cloud service providers segment dominated the market with a 40% share in 2025, since prominent cloud providers build new data centers to process and store huge amounts of data produced by various digital services provided by various branches of their corporation. 
• By End-Use Industry: The telecommunications providers segment held the second-largest market share of 15% in 2025, owing to the fact that major telecom operators like AT&T, Verizon, and Deutsche Telekom require numerous edge data centers to run their mobile network services, 5G network infrastructure, and content delivery services.

Regional Analysis

North America led the data center EPC market with a 40% share in 2025, driven by the strong presence of leading hyperscale cloud providers that have collectively invested billions in large-scale data center infrastructure. The U.S. dominated the regional market due to its advanced cloud computing and AI ecosystem, favorable regulatory environment, and a well-established network of EPC contractors and service providers. Canada also recorded notable growth, supported by its cooler climate that reduces cooling energy requirements and its abundant hydroelectric power, which offers cost-effective renewable energy for data center operations.

Asia Pacific is expected to grow at the fastest CAGR during the forecast period, supported by rapid digitalization, rising internet penetration, and strong adoption of cloud services, AI, e-commerce, and digital payments. China leads the region due to its mature technology sector, strict data localization policies, and strong government investments in hyperscale and edge data center infrastructure. India is also emerging as a key contributor, driven by its large mobile and internet user base and government-led digital initiatives such as digital identity and payment systems, which generate massive data volumes requiring large-scale data center capacity.

Data Center EPC Market Coverage

Top Companies in the Data Center EPC Market

Turner Construction Company, DPR Construction, Skanska AB, Mortenson Company, and Bouygues Construction are among the key players involved in the construction of hyperscale and colocation data centers. AECOM, Fluor Corporation, Jacobs Solutions Inc., Black & Veatch, and Bechtel Corporation specialize in large-scale engineering, procurement, and construction management services for data center facilities. In Asia and other emerging regions, companies such as Larsen & Toubro (L&T), Samsung C&T, and China State Construction Engineering Corporation (CSCEC) provide comprehensive EPC services supporting rapid data center expansion.

Segments Covered in the Report

By Service Type

• Engineering Services
• Procurement Services
• Construction Services
• Integrated EPC Contracts (Turnkey Projects)

By Data Center Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers
• Edge Data Centers

By Infrastructure Type

• Electrical Infrastructure (UPS, Switchgear, Power Distribution)
• Mechanical Infrastructure (Cooling Systems, HVAC)
• General Construction (Civil Works, Structural Systems)

By Deployment Model

• New Build Projects
• Expansion & Retrofit Projects

By End-Use Industry

• Cloud Service Providers
• Telecommunications Providers
• BFSI (Banking, Financial Services, Insurance)
• Government & Defense
• Healthcare & Life Sciences
• Retail & E-commerce
• Manufacturing & Industrial

By Region

• North America
• Latin America
• Europe
• Asia-pacific
• Middle and East Africa

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