The Booming U.S. Data Center Construction Market: Trends and Implications (2024)

Virginia’s Meadowville Technology Park will soon be home to a 139,000-square-foot data center with a 20-megawatt initial capacity that is expected to eventually double to 40 megawatts.

The project is being developed by Dublin, Ireland-based data center developer Chirisa, with DPR Construction selected as the general contractor, according to an article in Construction Dive.

The new data center will complement Chirisa’s existing 242,000 sq.ft. data center at the park, which is currently being upgraded to 18 megawatts from its current 6-megawatt capacity. The developer is also seeking to build a third data center at the park on the 300,000 sq.ft. site of an unfinished industrial project that was originally supposed to be a packaging factory.

The Booming U.S. Data Center Construction Market: Trends and Implications (1)

In recent years, the United States has witnessed a significant surge in the construction of data centers, a trend driven by an insatiable demand for data processing and storage capabilities.

This boom is not just a response to the increasing consumption of digital services by consumers and businesses, but also a strategic move by tech giants and investors to future-proof infrastructure in an increasingly digital world.

Understanding the Data Center Construction Boom

Drivers of Growth:

Several key factors contribute to the rapid expansion of data center construction in the U.S.:

Digital Transformation: As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed.

Internet of Things (IoT) and AI: The proliferation of IoT devices and the advancement in AI technologies have created vast amounts of data that need processing and storage, further fueling the demand for data centers.

Remote Work and Learning: The shift towards remote work and online education, significantly accelerated by the COVID-19 pandemic, requires substantial data processing capabilities, which data centers provide.

Legal and Regulatory Factors: Data sovereignty laws and privacy regulations, such as GDPR in Europe, are prompting companies to localize data storage and processing, leading to increased construction of data centers across the U.S.

Geographic Hotspots:

While data centers are being built across the country, certain regions have emerged as hotspots, including Northern Virginia, which hosts the largest concentration of data centers globally. Other significant areas include Silicon Valley, Dallas, Chicago, and Phoenix. These regions are favored due to their relatively low energy costs, favorable climate for natural cooling, and robust connectivity infrastructure.

Trends in Data Center Construction

Sustainability Focus:

One of the most noteworthy trends in data center construction is the focus on sustainability. Companies are increasingly adopting green building practices and striving to achieve energy efficiency and reduce carbon footprints. This involves the use of renewable energy sources, advanced cooling mechanisms, and innovative architectural designs that minimize energy consumption.

Modular and Scalable Designs:

The uncertainty and rapid evolution of technology demand flexibility in data center design. Modular data centers, which are prefabricated units that can be easily shipped and assembled, are becoming popular due to their scalability. These allow businesses to scale their data processing capabilities as needed without a significant upfront investment in a permanent facility.

Edge Computing:

To reduce latency and increase the speed of data processing, there is a growing trend towards building smaller, localized data centers closer to users. This concept, known as edge computing, is particularly beneficial for real-time data processing applications, such as those used in autonomous vehicles and real-time analytics.

Economic and Community Impact

Job Creation:

The construction of data centers is a significant job creator, both during the construction phase and for ongoing operations. Each new data center requires a workforce for IT management, maintenance, security, and administration, providing a boost to local economies.

Infrastructure Development:

Data center construction often leads to improvements in local infrastructure, including upgrades to power grids, water supply, and telecommunications networks. This can have broader benefits for communities, improving the overall business environment and quality of life.

Challenges and Considerations

Despite the benefits, the boom in data center construction comes with its set of challenges:

Energy Consumption: Data centers are intensive energy users, and as their number grows, so does their impact on the energy grid and resources. Balancing this demand with the need for sustainability is a continuing challenge.

Community Relations: The construction of large facilities can sometimes meet with opposition from local communities, particularly if it leads to concerns over resource use, environmental impact, or aesthetic changes.

Technological Changes: Rapid technological advances can make a data center obsolete if not designed with future trends in mind, posing risks for developers and investors.

GPRS Services Ensure Safe Construction/Renovation of Data Centers

The construction of data centers in the United States is a dynamic market characterized by rapid growth and significant investment.

Driven by the need to support an ever-growing demand for digital services, this trend is reshaping the landscape of U.S. infrastructure. While it brings substantial economic and technological benefits, it also presents challenges that require innovative solutions and thoughtful planning. As the digital world continues to evolve, so too will the strategies for data center development, ensuring they meet the future's needs efficiently and sustainably.

GPRS offers a suite of subsurface damage prevention, existing condition documentation, and construction & facilities project management services designed to keep projects such as the construction of data centers on time, on budget, and safe.

Our concrete scanning, utility locating, video pipe inspection, and leak detection services mitigate subsurface damage while breaking ground, or coring or cutting concrete. Utilizing state-of-the-art technology such as ground penetrating radar (GPR), electromagnetic (EM) locating, and remote-controlled sewer pipe inspection rovers, our SIM and NASSCO-certified Project Managers (PMs) provide you with a comprehensive understanding of your site’s subsurface infrastructure.

To visualize what’s above ground and capture our PMs’ utility locating and concrete scanning markings, our 3D laser scanning and photogrammetry services provide you with 2-4 mm-accurate data that will aid you in both project planning, and operation and maintenance (O&M) activities down the road. And our in-house can visualize this data in whatever deliverable format and software you require.

All this field-verified data is at your fingertips 24/7 thanks to SiteMap® (patent pending), GPRS’ cloud-based project & facility management application that provides accurate existing condition documentation to protect your assets and people.

SiteMap® allows for secure collaboration between you and your team members whenever and wherever you may be located. Securely access and share your data at any time, from any computer, tablet, or mobile device.

GPRS’ SiteMap® team members are currently scheduling live SiteMap® demos. Click below to schedule yours and see how SiteMap® can help you plan, design, manage, dig, and build better today!

Schedule Your SiteMap Demo Today

The Booming U.S. Data Center Construction Market: Trends and Implications (2024)
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