Data Center Roll-Out to See $3.2 Trillion Flow to Construction Sector

Data center development associated with the expansion of AI infrastructure is projected to drive $3.2 trillion in revenue for the construction sector through 2050, according to PwC. A survey of 377 engineering and construction (E&C) executives revealed that the proportion expecting revenue from data center projects will rise by 20% over the next five years. Furthermore, executives anticipate that data centers' share of total corporate revenue will expand by an average of 26% during this period.

E&C leadership also anticipates increased demand within sectors supporting data center growth. Power, utilities, and grid infrastructure—already established within E&C portfolios—are expected to see their mean revenue share rise by 11% over five years. Other growth segments include renewable energy, hydrogen, and carbon capture (expanding by 26%) and advanced manufacturing (increasing by 24%).

This shift occurs as many E&C firms reduce exposure to residential and commercial building construction, with 42% citing an exit or reduction in these categories. Conversely, 51% expect to expand into other infrastructure projects, including energy and transportation. Approximately 91% of executives anticipate their firm’s revenue share from specific markets will shift by at least five percentage points, with 29% expecting changes of 20 percentage points or more.

“The volume of upcoming work exceeds the realistic capacity of most E&C firms. As projects increasingly integrate power, digital, and industrial assets, securing these contracts will rely on more than individual firm strengths. Success will depend on the effective integration of partners, technology, and commercial terms to ensure projects are delivered on schedule and within budget,” stated Daryl Walcroft, Global Engineering and Construction Leader at PwC US.

The Gulf Cooperation Council (GCC) remains a dominant geographic growth region, with its influence expected to expand. The share of executives identifying the region as a primary revenue opportunity is projected to rise from 38% to 47% over five years. Annual infrastructure expenditure across the GCC is forecasted to increase by 75%, rising from $200 billion in 2024 to $349 billion by 2050.

South and Southeast Asia are also gaining significance, rising to 27% each from previous levels. The Asia Pacific region remains the world’s largest market for infrastructure investment, representing over half of projected spending through 2050. Annual expenditure there is expected to grow from $2.3 trillion to $3.6 trillion by mid-century. Meanwhile, US market expectations remain steady at 33%, while Western Europe is projected to decline slightly to 23% by 2031.

Operational speed is a primary factor in this rollout as AI implementation expands across the value chain. When identifying critical customer attributes for the next five years, 43% of respondents prioritized speed over schedule and budget certainty (40%). Despite this emphasis on speed, roughly half of the executives cited supply-chain constraints and long-lead equipment delays as significant barriers to delivery.

Technology is increasingly fundamental to the industry rollout. The median percentage of respondents utilizing AI and advanced technology across the value chain is expected to rise from 52% to 69% within five years. Among "future-fit" firms—the top 20% of respondents—this figure is projected to increase from 62% to 81%.

AI remains a significant technological priority, primarily for augmenting knowledge-intensive tasks such as design and engineering rather than automating physical construction. Half of the respondents identified AI for estimating and bidding as one of the three most important technologies for their strategic goals. However, as technology gains importance, approximately two-thirds of executives identified talent shortages as a growth barrier.

To capitalize on emerging growth, 52% of executives prioritized expansion into integrated infrastructure programs combining multiple systems, such as energy and data centers. Additionally, 44% ranked expansion into lifecycle services as a top strategic action, aligning with new customer segment expansion. Future-fit organizations are 20% more likely than the industry average to prioritize these lifecycle services.

The survey reveals a notable tension between strategic ambition and investment growth. Only 12% of respondents identified asset operations and maintenance as one of the three sectors expected to see the largest investment increase over five years. The vast scale of upcoming investment suggests most E&C firms will encounter more opportunities than they have the capacity to manage.

“Major project success relies on synchronizing designers, contractors, and labor across hundreds of complex interfaces. As delivery teams become larger and more intricate, firms must transition from simple player coordination to the orchestration of the entire performance as the world enters a new investment cycle in the built environment,” stated Rafael Perez Guerra, EMEA Construction Leader at PwC Spain.