Data Center Engineering Market Report

Data Center Engineering Market Report

Data Center Engineering Market Report
Report code - SR4573 Published On : Jan,2026 No. of Pages: 120
Data Center Engineering Market Size, Share, Trend, Forecast, Competitive Analysis, and Gro See more...

Market Insights

“The data center engineering market value was US$2.5 billion in 2023 and is likely to grow at an impressive CAGR of 14.9 % in the long run to reach US$8.5 billion in 2032.”

Market Dynamics

Introduction

The data center engineering market is the foundation of the current digital economy, delivering the experience needed to design, construct, and operate highly resilient, efficient, and scalable installations. These services span critical infrastructure systems, including electrical, highly sophisticated cooling and mechanical systems, fire protection, civil and structural design, and physical security. Engineering solutions maintain industry standards of uptime, safety, and sustainability by ensuring the smooth integration and optimal operation of these systems. This renders them essential in fueling hyperscale, colocation, enterprise, and edge data centers through digital infrastructure in the world.

The demand for cloud computing, the increase in data traffic, as well as the quick development of hyperscale and edge data centers are driving the market growth. The changing engineering services are advancing sophisticated design tools, sustainable infrastructure provisions, and energy-efficient technologies in order to meet the increasing complexity of the industry. There are also the tight regulatory frameworks, increased cybersecurity issues, and green pressure that are driving up the need for special engineering solutions. Data center engineering can become a foundation for facilitating enterprises and service providers to address next-generation digital needs because it guarantees consistency in performance and long-term functionality.

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

  • In 2024, Blackstone, in partnership with CPP Investments, acquired Asia-Pacific data center operator AirTrunk to strengthen its global digital infrastructure platform and expand exposure to hyperscale-oriented data center engineering, construction, and power integration requirements across the region.
  • In 2024, KKR partnered with Energy Capital Partners (ECP) to form a long-term strategic platform focused on large-scale data center and power infrastructure development, aimed at accelerating hyperscale campus engineering, grid connectivity, and energy-intensive facility design across key U.S. markets.
  • In 2023, Digital Realty entered into a joint venture with TPG to scale hyperscale data center capacity in Northern Virginia, enabling operational optimization, standardized facility engineering, and faster deployment of large, stabilized hyperscale assets through institutional partnerships.

Market Segments' Analysis

Segmentations

List of Sub-Segments

Segments with High-Growth Opportunity

Engineering-Type Analysis

Electrical, Mechanical/Cooling, Fire and Security Systems, Civil/Structure, and Other Engineering

Electrical services are anticipated to contribute the largest share and to grow at the fastest rate in the coming years.

Data Center-Type Analysis

Hyperscale, Colocation, Enterprise, and Edge

Colocation data centers are expected to be the demand generator for engineering services. In contrast, hyperscale data centers are likely to grow at the fastest rate in the coming years.

Region Analysis

North America, Europe, Asia-Pacific, and The Rest of the World

North America is anticipated to maintain its dominance in the global market, while Asia-Pacific is expected to witness the fastest growth owing to rising digital infrastructure investments.

 

 

By Data Center Type

Colocation data centers are expected to remain dominant, whereas hyperscale data centers will be the fastest-growing type of the market during the forecast period.

Based on data center type, the market is segmented into enterprise, colocation, hyperscale, and edge data centers. Colocation data centers are expected to maintain their dominant position in the market, supported by their flexible, multi-tenant business model and broad customer base. Enterprises increasingly prefer colocation facilities to reduce capital expenditure, improve scalability, and access high-reliability infrastructure without owning and operating data centers themselves. Continuous onboarding of new customers and regular capacity expansions translate into sustained demand for resilient power infrastructure, including backup generators. Their standardized designs, strong uptime commitments, and presence across key global markets further reinforce colocation data centers as the backbone of the current data center ecosystem.

At the same time, hyperscale data centers are projected to be the fastest-growing category during the forecast period. The explosive growth of cloud services, artificial intelligence, big data analytics, and digital platforms is driving massive investments by leading cloud service providers. Hyperscalers are rapidly expanding existing campuses and developing new, large-scale facilities to support soaring compute and storage requirements. These developments require high-capacity, highly reliable backup power systems, accelerating generator demand. As hyperscalers also pursue energy efficiency and sustainability, their scale and innovation focus are reshaping growth dynamics across the data center power infrastructure market.

By Engineering Type

Electrical engineering is expected to remain the dominant and fastest-growing engineering type of the market during the forecast period.

Based on engineering type, the market is segmented into electrical, mechanical/cooling, fire and security systems, civil/structure, and other engineering. Electrical engineering is expected to remain the dominant segment in the data center engineering market, as power reliability and efficiency are central to data center operations. From high-voltage utility connections and substations to UPS systems, switchgear, and backup generators, electrical design forms the backbone of uninterrupted data availability. Rising rack densities, AI-driven workloads, and stricter uptime requirements are increasing the complexity and scale of electrical systems, sustaining strong demand for advanced electrical engineering expertise across new builds and expansions.

At the same time, electrical engineering is also projected to be the fastest-growing discipline during the forecast period. Accelerating data center construction, capacity upgrades, and retrofits, combined with the integration of renewable energy, energy storage, and smart power management systems, are expanding the scope of electrical design and optimization. As operators pursue higher efficiency, redundancy, and sustainability, electrical engineering continues to play a critical role in enabling scalable, resilient, and future-ready data center infrastructure.

Regional Analysis

North America is expected to remain the largest market for data center engineering during the forecast period.

North America continues to dominate the data center engineering market, underpinned by its highly advanced digital infrastructure and early adoption of high-density, AI-driven workloads. The region hosts a dense concentration of hyperscale and colocation data centers, supported by sustained capital investments from leading cloud service providers. A mature engineering ecosystem, availability of skilled expertise, and stringent data security and compliance regulations further strengthen demand for sophisticated engineering solutions, reinforcing North America’s leadership in both new developments and complex retrofit projects.

Asia-Pacific, in contrast, is emerging as the fastest-growing market for data center engineering, fueled by rapid digital transformation and accelerating cloud adoption. Expanding internet usage, 5G rollouts, and the rising need for hyperscale and edge facilities are driving large-scale projects across the region. Countries such as China, India, and Singapore are at the forefront, supported by proactive government digital initiatives and increasing emphasis on energy-efficient, sustainable, and scalable data center designs.

Key Players (Based on Dominance)

The market is highly fragmented, with more than 100 players. Most of the major players compete in some of the governing factors, including price, service offerings, and regional presence etc. The following are the key players in the data center engineering market. Some of the major players provide a complete range of services.

Here is the list of the Top Players (Based on Dominance)

  • Jacobs
  • Burns and McDonnell
  • WSP Global
  • EXP
  • Flour Corporation
  • AECOM
  • Arcadis
  • HDR INC.
  • Gensler

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

  • Market structure: Overview, industry life cycle analysis, supply chain analysis.
  • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
  • Market trend and forecast analysis.
  • Market segment trend and forecast.
  • Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
  • COVID-19 impact and its recovery curve.
  • Attractive market segments and associated growth opportunities.
  • Emerging trends.
  • Strategic growth opportunities for the existing and new players.
  • Key success factors.

The data center engineering market is segmented into the following categories. 

Data Center Engineering Market, by Data Center Type

  • Hyperscale (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Colocation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Edge (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Data Center Engineering Market by Engineering Type

  • Electrical (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Mechanical/Cooling (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Fire and Security Systems (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Civil/Structure (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
  • Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Data Center Engineering Market by Region

  • North America (Country Analysis: The USA, Canada, and Mexico)
  • Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe)
  • Asia-Pacific (Country Analysis: China, Australia, Japan, India, and the Rest of Asia-Pacific)
  • Rest of the World (Country Analysis: Brazil, Africa, and Others)

Research Methodology

  • This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center engineering market realities and future market possibilities for the forecast period.
  • The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
  • The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
  • This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
  • More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
  • We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

 

 

Report Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

  • Detailed profiling of additional market players (up to three players)
  • SWOT analysis of key players (up to three players)

Competitive Benchmarking

  • Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]

Frequently Asked Questions (FAQs)

Data center engineering technology refers to the specialized design, integration, and management of critical infrastructure systems such as electrical power, cooling, fire safety, structural, and security systems that ensure the reliable operation of data centers. It combines mechanical, electrical, and civil engineering disciplines with advanced IT infrastructure planning to support high-performance computing, cloud services, and digital storage needs.

The data center engineering market was valued at US$2.8 billion in 2024 and is projected to grow at a robust CAGR of 14.9% over the long term, reaching an estimated US$8.5 billion by 2032.

The data center engineering market is anticipated to grow at an impressive compound annual growth rate (CAGR) of 14.9% during the forecast period (2025–2032), driven by increasing demand for hyperscale facilities, rapid cloud adoption, and expanding digital infrastructure worldwide.

The market is driven by rising cloud adoption, hyperscale expansion for AI and big data, increasing internet penetration, and growing investments in energy-efficient digital infrastructure.

High-growth opportunities lie in the Enterprise data center, with electrical services leading demand, particularly in fast-growing APAC markets like India and China.

Jacobs, Burns & McDonnell, WSP Global, EXP, Fluor Corporation, AECOM, Arcadis, HDR Inc., and Gensler are among the leading players in the Data Center Engineering market, recognized for their expertise in planning, design, and execution of large-scale, complex data center projects worldwide.