Building, Construction & Industrials
Data centers are moving to the edge.
Construction spend is not slowing down. It is changing direction. Our analysis shows where the next four years of data center construction actually go, and what it means for the suppliers building it.
Data Centers: Prepare for the Shift to the Edge
Ducker Carlisle’s full analysis of the shift from hyperscale to edge, and what it means for suppliers.
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$90 – $100B
Projected 2029 U.S. data center construction spend, up from $60.0B in 2025
13%
Colocation CAGR, 2025 to 2029, overtaking hyperscale at 12 percent
17%
Network & External Connectivity share of edge project spend, up from 9 percent at hyperscale
−8%
Enterprise data center construction CAGR, 2025 to 2029
Data center construction is moving from hyperscale to the edge, changing where it happens, what gets built, and what suppliers need to deliver to win.
The growth engine flips after 2026.
Hyperscale data centers built the current boom. From 2026 to 2029, colocation construction spend grows faster, and enterprise data center construction contracts. The segment that defined the AI infrastructure buildout is no longer the fastest-growing one.
SOURCE: FIGURE 1, CAGR TABLE (2026–2029)
Key Findings
Three shifts suppliers need to plan around
FINDING 01
The growth engine flips after 2026.
Colocation overtakes hyperscale on growth rate, 13 percent CAGR versus 12 percent from 2026 to 2029, while enterprise data center construction contracts.
FINDING 02
The product mix is shifting with it.
Network and External Connectivity spend nearly doubles its share of edge project spend versus hyperscale, 17 percent versus 9 percent, at the expense of Building Site spend.
FINDING 03
Edge developers need more from their suppliers.
With fewer technical resources than hyperscale developers, edge developers lean harder on channel fulfillment, inventory management, and integration support to hit go-live.
The opportunity is not disappearing. It is redistributing, across a more fragmented, smaller-footprint edge landscape.
Data Centers: Prepare for the Shift to the Edge
Get the full picture of the edge shift.
See the complete construction forecast, the ecosystem comparison, and the landscape of developers building at the edge.
Download the Report Or book a briefing with the practice → Ducker Carlisle is also tracking the data center construction opportunity for private equity investors evaluating platform and add-on investments in the space. See The Data Center Opportunity.