Arizton Predicts Global Data Center Construction Investment to Reach $323.7 Billion by 2031
2026-07-01 14:13
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en.Wedoany.com Reported - Global investment in data center construction will continue to accelerate. According to the latest research from Arizton Advisory & Intelligence, as hyperscale operators and cloud service providers expand capacity to meet digital infrastructure demands, the market size is projected to grow from $144 billion in 2025 to $323.72 billion by 2031, at a compound annual growth rate of 14.46%. Compared to 2024, investment is expected to increase by approximately 56%, highlighting the scale of capacity expansion underway in major global markets.

In terms of investment breakdown, during the 2026-2031 period, colocation data centers will lead the market with an investment of $1.06 trillion, a white space area of 412.32 million square feet, and a power capacity of 98,809 MW. Hyperscale data centers follow closely with an investment of $473.33 billion and a power capacity of 44,682 MW. Enterprise data centers continue to see declining investment as workloads shift to cloud and colocation facilities. In terms of infrastructure, UPS systems with capacities exceeding 750 kVA and employing N+1, N+N, and 2N redundancy are becoming standard configurations, as seen in Sify Technologies' Rabale data center (N+N redundancy, 10-minute backup) and KIO Networks' MEX 6 data center (900 kVA UPS). Despite sustainability efforts, generators remain critical for backup power, with examples including Africa Data Centres' JHB1 (48-hour backup), Equinix BG2 (N+1 diesel generators), and Gulf Data Hub's Dubai data center (16,000 kVA N+1, 24-hour fuel storage). Advanced cooling systems are also improving efficiency, such as NTT DATA's Ho Chi Minh City Data Center 1, Urbacon DC5 (N+1 direct evaporative cooling), and Moro Hub's Dubai data center (N+1 chillers, CRAH units, and hot/cold aisle containment).

AI workloads have increased the power and cooling demands of modern data centers, making AI-ready infrastructure a priority for new developments worldwide. Compared to traditional data centers, facilities designed for AI applications require higher rack densities, GPU-ready environments, liquid cooling, and more resilient power systems. AI-ready hyperscale capacity is expected to nearly triple over the next five to six years. This is reflected in a series of major investments, such as the $500 billion Stargate project in the United States, Alibaba Group's $69.05 billion AI infrastructure project in China, and Oracle's planned $40 billion investment in NVIDIA GB200 chips for OpenAI infrastructure. National-level AI initiatives in Europe and Latin America are also driving increased demand for hyperscale and cloud-ready data centers.

On a regional level, the United Kingdom and Germany continue to dominate the European data center construction market, accounting for 19.59% and 13.74% of regional investment in 2025, respectively. The Asia-Pacific region saw investment increase by nearly one-third within a year, with data center construction investment growing 31.99% year-over-year to $34.65 billion in 2025, of which China accounted for 41.81% of regional investment. Colocation data centers remain the primary investment segment in Africa, accounting for approximately $966 million of the region's $1.24 billion data center construction market in 2025, while enterprise data centers account for about $277.5 million. Nordic countries are attracting data center development through natural cooling and renewable resources, including hydropower, wind, and geothermal energy. The market in this region is expected to reach 109.61 million square feet in area by 2031, with power capacity increasing to 28,307 MW.

The competitive landscape remains highly fragmented, with over 359 suppliers involved in hyperscale, colocation, enterprise, and wholesale data center development. Global operators such as AWS, Microsoft, Google, Meta, Equinix, Digital Realty, NTT DATA, and Vantage Data Centers are expanding their footprints, while regional suppliers are strengthening their presence in North America, Europe, Asia-Pacific, and Latin America through localized investments and capacity expansion.

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