U.S. Data Center Market Size & Share Analysis, Growth Potential, Price Trends, Regional Insights (2026–2031)
UNITED STATES DATA CENTER MARKET SIZE AND SHARE
| MARKET SIZE (INVESTMENT) | USD 494.49 Billion |
| MARKET SIZE (AREA) | 52.57 million Square feet |
| MARKET SIZE (POWER CAPACITY) | 13,565 MW |
| CAGR - INVESTMENT (2025-2031) | 8.75% |
| HISTORIC YEAR | 2022- 2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| MAJOR PLAYERS | Arista NetworksAtosBroadcomCisco SystemsDataDirect Networks (DDN)Dell TechnologiesExtreme Networks |
UNITED STATES DATA CENTER MARKET ANALYSIS
The U.S. data center market size is projected to grow from USD 298.97 billion in 2025 to USD 494.49 billion by 2031, registering a CAGR of 8.75% during the forecast period. Growth is driven by increasing cloud adoption, edge computing, and rising demand for AI, big data, and IoT applications.
Data center investments increased significantly in 2025 compared with 2024, supported by strong construction activity from hyperscale and colocation operators. The growing adoption of AI is expected to further accelerate demand. However, construction costs remain high, ranging from USD 9 million to USD 14 million per MW, driven by land constraints, labor expenses, inflation, and limited power availability.
Large-scale projects are strengthening the market's investment outlook. In January 2024, the Stargate Project was announced by OpenAI, Oracle, SoftBank, and MGX, with planned investments exceeding USD 100 billion. Meanwhile, sustainability initiatives are improving access to renewable energy. In July 2025, Google signed a multi-billion-dollar hydroelectric framework agreement with Brookfield Renewable to secure up to 3 GW of firm hydropower, including initial contracts worth USD 3 billion in Pennsylvania.
Demand remains strong in major data center hubs such as Northern Virginia, Silicon Valley, Chicago, Dallas–Fort Worth, and Phoenix, driven by AI and cloud workloads. However, power shortages, limited land availability, and lengthy utility connection timelines are restricting supply, contributing to low vacancy rates, rising rents, and increased pre-leasing activity.
Developers are also expanding into secondary markets, including Austin, Seattle, Charlotte, Denver, and Minneapolis, to diversify capacity. Nevertheless, grid limitations, community opposition, and infrastructure bottlenecks remain key considerations for future investments and project development.
U.S. DATA CENTER MARKET INSIGHT BY AREA
The U.S. data center market by area is projected to reach approximately 52.57 million square feet by 2031, supported by the expansion of major data center hubs across the country. The growing concentration of data center developments in key locations is driving demand for suitable industrial land. However, land prices vary significantly across regions depending on power availability, connectivity, and proximity to major business centers. As operators continue to acquire land to accommodate new construction and expanding capacity requirements, competition for strategically located sites is expected to intensify, potentially leading to further increases in land prices and overall development costs.
U.S. DATA CENTER MARKET INSIGHT BY POWER CAPACITY
The U.S. data center market by power capacity is projected to reach approximately 13,565 MW by 2031, supported by capacity additions from colocation service providers and hyperscale operators developing their own facilities. Virginia remains a leading hub for new capacity, driven by colocation developments and hyperscale investments from companies such as AWS and Microsoft. Texas, Illinois, and Arizona are also expanding capacity nationwide. However, the growing power requirements of AI workloads are placing increasing pressure on electricity infrastructure. Reliable power availability is expected to remain a critical factor influencing site selection, project development, and overall growth in the U.S. data center market in the coming years.
Key Report Takeaways
- Facility Type - Based on facility type, the enterprise data centers segment is expected to maintain a leading position in the U.S. data center market.
- Infrastructure - Based on infrastructure, the general construction segment held the largest share of the U.S. data center market.
- IT Infrastructure - Based on IT infrastructure, the server segment accounted for the largest share of the U.S. data center market.
- Electrical Infrastructure - Based on electrical infrastructure, the uninterruptible power supply (UPS) segment held the largest share of the U.S. data center market
- Mechanical Infrastructure - Based on mechanical infrastructure, the cooling systems segment held the largest share of the U.S. data center market
- Cooling Systems - Based on cooling systems, the chiller units segment held the largest share of the U.S. data center market
- Cooling Techniques - Based on cooling technique, the air-based cooling segment held the largest share of the U.S. data center market
- General Construction - Based on general construction, the core and shell development segment held the largest share of the U.S. data center market
- Tier Standard - Based on tier standards, the Tier III segment held the largest share of the U.S. data center market
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
U.S. Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
UNITED STATES DATA CENTER MARKET TRENDS AND DRIVERS
TRENDS
AI Transforming the Landscape of the Data Center Market
The rapid growth of the artificial intelligence (AI) industry is expected to significantly expand hyperscale data center capacity over the coming years. Although current AI-related investments have not yet fully matched the pace of hyperscale data center expansion, capacity dedicated to these facilities, particularly for AI-intensive workloads, is projected to nearly triple over the next five to six years. The increasing adoption of AI across industries such as healthcare, finance, manufacturing, and technology is driving demand for advanced computing infrastructure capable of processing large volumes of data efficiently. In response, data center operators are developing new facilities designed to accommodate high-density AI workloads, supported by advanced servers, high-performance computing systems, and enhanced power and cooling infrastructure. This shift is expected to accelerate hyperscale development and increase investment in next-generation data center infrastructure.
Renewable Energy and Sustainability Initiatives by Data Center Operators
The rapid expansion of AI and cloud computing workloads is significantly increasing energy consumption across the data center industry. As operators scale their infrastructure to support growing computing requirements, sustainability has become a critical priority for controlling carbon emissions, optimizing operational costs, and maintaining long-term power grid stability. Data center operators are increasingly focusing on energy-efficient infrastructure, renewable energy integration, advanced cooling technologies, and responsible water management to minimize their environmental impact. Furthermore, local governments and surrounding communities are becoming more concerned about the environmental and infrastructure challenges associated with large-scale data center developments, including excessive electricity consumption, pressure on water resources, rising emissions, and noise pollution. These concerns are leading to greater scrutiny of new projects, encouraging operators to adopt sustainable design practices and demonstrate environmental responsibility. As a result, sustainability is expected to play an increasingly important role in data center site selection, project approvals, infrastructure planning, and long-term operational strategies.
RESTRAINTS
Power Availability and Grid Challenges
The U.S. data center market is facing significant challenges related to power availability and infrastructure capacity, which could constrain the pace of future development. One of the major concerns is the growing delay in grid connections, as utility providers struggle to accommodate the increasing electricity requirements of new and expanding data center facilities. The rapid adoption of artificial intelligence (AI), cloud computing, and high-performance computing is further increasing power consumption, placing additional pressure on existing electricity infrastructure. In many locations, limited grid capacity, lengthy approval processes, and the time required to develop new transmission and distribution infrastructure are delaying project completion. These constraints can increase development costs, affect construction timelines, and limit the availability of suitable sites for new facilities. As a result, securing reliable and sufficient power capacity is becoming a critical factor influencing site selection, investment decisions, and the overall growth of the U.S. data center market.
Concerns Over Carbon Emissions from Data Centers
Data centers require substantial amounts of electricity to support continuous operations, high-performance computing, data storage, and cooling systems. As digital services, cloud computing, and artificial intelligence (AI) applications continue to expand, energy consumption across data centers and transmission networks is increasing. These facilities and networks account for approximately 1% of global energy-related greenhouse gas emissions, highlighting the environmental impact of growing digital infrastructure. With electricity demand expected to rise further, concerns about carbon emissions, climate change, and long-term energy sustainability are becoming increasingly important. Data center operators are therefore under growing pressure to improve energy efficiency, adopt renewable energy sources, and implement advanced cooling technologies to reduce their environmental footprint. Maintaining reliable power supplies while limiting emissions is expected to remain a key challenge for the data center industry as it continues to expand.
U.S. DATA CENTER MARKET DRIVERS
M&A and Joint Ventures Enabling Data Center Construction Growth
The growing demand for AI-driven computing infrastructure is creating substantial capital requirements that can be challenging for individual operators to manage independently. As a result, data center companies are increasingly pursuing mergers and acquisitions (M&A) and joint ventures to combine financial resources, secure essential grid connections, and accelerate the development of large-scale facilities. These strategic partnerships help distribute investment risks, strengthen access to power and supporting infrastructure, and improve coordination with utility providers. Furthermore, collaborative investment models enable companies to expand their operational capabilities, enter emerging markets, and respond more effectively to the rising demand for AI and cloud computing infrastructure.
Tax and Sales Incentives are a Major Boost for Data Center Growth
Data centers play a vital role in the digital economy, prompting governments worldwide to introduce policies that support infrastructure development and investment. Many governments offer tax incentives, financial benefits, and other supportive measures to attract data center operators and encourage the establishment of new facilities. These incentives help reduce initial investment costs and operational expenses while creating a favorable environment for market expansion. In addition, some government programs encourage operators to adopt energy-efficient technologies, integrate renewable energy sources, and implement sustainable operating practices. Such initiatives are expected to support data center development while promoting greater energy efficiency and environmental sustainability.
SEGMENT ANALYSIS
IT INFRASTRUCTURE
Based on IT infrastructure, the server segment accounted for the largest share of the U.S. data center market, representing approximately 77% in 2025. Its leading position is supported by the increasing need for computing capacity to handle cloud-based services, enterprise applications, AI workloads, and growing data processing demands. Servers are available in various configurations, including rack, blade, and tower models, enabling data center operators to address diverse computing requirements, optimize space utilization, and improve operational efficiency. Rack and blade servers are among the most commonly deployed solutions in the market, with leading vendors such as Cisco Systems, Hewlett Packard Enterprise, Dell Technologies, IBM, Lenovo, and NetApp offering a wide range of products to meet evolving data center requirements and support expanding enterprise IT infrastructure.
ELECTRICAL INFRASTRUCTURE
Based on infrastructure, the general construction segment held the largest share of the U.S. data center market, driven by the extensive range of services required to develop and maintain data center facilities. General construction encompasses site preparation, core and shell development, building design services, including architectural and engineering design, and installation and commissioning activities. It also includes essential security systems, such as fire and smoke detection, intruder detection, access control, closed-circuit television (CCTV) surveillance, external vehicle crash barriers, security fencing, and mantraps, along with data center infrastructure management (DCIM). The growing demand for new data center facilities and the expansion of existing infrastructure to support increasing digital workloads continue to reinforce the importance of general construction in the U.S. data center market.
MECHANICAL INFRASTRUCTURE
Based on mechanical infrastructure, the cooling systems segment held the largest share of the U.S. data center market, driven by the increasing need for effective thermal management and energy-efficient operations. Cooling system investments are estimated to account for approximately 15% to 20% of total data center project costs, highlighting their importance in overall infrastructure planning and operational expenditure. Cost-effectiveness, energy efficiency, and system reliability are key factors influencing vendor selection, while data center operators are increasingly adopting advanced accessories and system-level monitoring controls to optimize cooling performance and maintain stable operating conditions. Furthermore, the growing adoption of liquid cooling solutions is supporting the management of heat generated by AI workloads and high-density computing environments, improving overall energy efficiency and enabling data centers to accommodate increasingly demanding computational requirements.
COOLING SYSTEMS
Based on cooling systems, the chiller units segment held the largest share of the U.S. data center market, driven by the growing need for reliable and energy-efficient cooling solutions to maintain optimal operating temperatures. Data centers located in warmer climatic conditions increasingly adopt free-cooling chillers equipped with smart technologies, which enable cooling operations to be adjusted according to outside temperatures and environmental conditions. These systems help optimize energy consumption and improve cooling efficiency when ambient conditions are favorable. Furthermore, demand for chiller units is expected to remain strong among data centers that require efficient thermal management and seek to leverage external environmental conditions to support facility cooling. The increasing deployment of high-density computing infrastructure and AI workloads is also reinforcing the importance of advanced chiller systems in maintaining operational reliability and managing rising heat loads.
GENERAL CONSTRUCTION
Based on general construction, the core and shell development segment held the largest share of the U.S. data center market, driven by the growing need for purpose-built facilities to support expanding digital infrastructure and increasing data center capacity. The development of data center buildings is a complex, collaborative process that brings together leading construction contractors, design and infrastructure service providers, and data center operators. These stakeholders work together to ensure structural integrity, efficient building design, scalability, and compliance with technical and operational requirements. As investments in new data center facilities continue to increase, core and shell development remains a critical component of the construction process, providing the essential building structure and infrastructure needed to accommodate advanced IT equipment and supporting systems.
TIER STANDARD
Based on tier standards, the Tier III segment held the largest share of the U.S. data center market, driven by its ability to provide high availability, operational reliability, and flexibility for maintenance without disrupting services. Tier III data centers feature a minimum N+1 redundancy in their power and cooling infrastructure, ensuring that an additional component is available to support operations in the event of equipment failure or maintenance requirements. The infrastructure components in these facilities are concurrently maintainable, allowing essential systems to undergo scheduled maintenance without interrupting normal operations. Tier III facilities typically experience approximately 1.6 hours of annual downtime, making them a preferred choice for enterprises and service providers that require reliable infrastructure and business continuity.
COOLING TECHNIQUE
Based on cooling technique, the air-based cooling segment held the largest share of the U.S. data center market, supported by its widespread adoption in traditional data center facilities and its ability to maintain optimal operating temperatures. Historically, data centers have relied primarily on air-based cooling systems to dissipate heat generated by servers and other IT equipment. However, the increasing deployment of AI workloads and high-performance computing infrastructure has raised rack power densities, creating significant challenges for conventional cooling methods. In response, technological advancements in air-based cooling systems have improved their performance and enabled them to support workloads exceeding 30 kW per rack. These innovations continue to strengthen the role of air-based cooling in the market, although the growing demand for higher-density computing is also encouraging data center operators to explore advanced cooling technologies.
GEOGRAPHY ANALYSIS
Southeastern U.S.
Midwestern U.S.
Northeastern U.S.
COMPETITIVE LANDSCAPE
The U.S. data center market features a competitive landscape comprising established operators, infrastructure developers, colocation providers, and emerging investors. Key market participants include CyrusOne, DataBank, Digital Realty, Equinix, NTT DATA, EdgeConneX, Aligned Data Centers, H5 Data Centers, HostDime, Hut 8, Iron Mountain, QTS Realty Trust, Sabey Data Centers, Skybox Datacenters, STACK Infrastructure, Stream Data Centers, Switch, T5 Data Centers, TierPoint, and Vantage Data Centers, among others.
In June 2025, EdgeCore Digital Infrastructure, a Denver-based data center provider, announced plans to invest $17 billion in developing a 1.1 GW data center facility in Virginia. The proposed campus will span 3.9 million square feet across 697 acres within the Shannon Hill Regional Business Park in Louisa County. Upon completion, the project will become EdgeCore's third data center campus in Virginia, strengthening its presence in one of the country's leading data center markets.
In May 2025, NTT DATA announced a major expansion of its global data center infrastructure, adding more than 370 MW of capacity, launching 10 new data centers, and enabling over 200 MW of AI workloads. The expansion reflects the company's focus on meeting the growing demand for AI-ready infrastructure and high-density computing. NTT DATA is investing in advanced liquid cooling technologies and purpose-built facilities designed to support demanding AI workloads while improving energy efficiency and sustainability across North America, Europe, and Asia.
The U.S. market is also attracting new entrants and infrastructure developers seeking to capitalize on increasing demand for hyperscale, cloud, and AI infrastructure. Emerging participants include Ada Infrastructure, CloudHQ, Beale Infrastructure, CloudBurst Data Centers, CleanArc Data Centers, Edged Energy, Fleet Data Centers, NE Edge, Penzance, Prometheus Hyperscale, Quantum Loophole, Rowan Digital Infrastructure, Related Digital, and Tract, among others. These companies are expanding development pipelines and exploring new locations to address growing requirements for power capacity, land availability, and scalable digital infrastructure.
In October 2025, Related Digital began construction on a $1.2 billion data center campus within the 900-acre Cheyenne Business Parkway in Wyoming. The 115-acre development is planned to support up to 302 MW of IT capacity at full buildout. Its first phase includes a 184,000-square-foot building on 36 acres, with completion scheduled for late 2026. The project highlights the growing interest in emerging data center locations that can accommodate large-scale developments.
Major hyperscale operators are also driving investment across the U.S. data center market, announcing substantial funding commitments to expand capacity over the next three to four years. In November 2025, Google announced plans to develop two new data center campuses in Muskogee County, Oklahoma, as part of a broader $9 billion investment in the state. AWS is also planning to develop two data centers in Madison County, Mississippi, backed by a total investment of $10 billion. The project is expected to generate approximately 1,000 construction jobs and is scheduled for completion by 2027.
In September 2025, Microsoft announced plans for a second large-scale AI data center in Wisconsin, bringing its total planned investment in the state to more than $7 billion. The newly proposed facility, valued at $4 billion, will complement the company's existing $3.3 billion data center development in Mount Pleasant, southeastern Wisconsin. This investment reflects Microsoft's continued focus on expanding AI infrastructure and strengthening its capacity to support growing demand for cloud computing and AI services.
United States Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
RECENT INDUSTRY DEVELOPMENTS
UNITED STATES DATA CENTER COLOCATION MARKET
View Colocation Report →TABLE OF CONTENTS FOR UNITED STATES DATA CENTER INDUSTRY REPORT
UNITED STATES DATA CENTER MARKET REPORT SCOPE
IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Other Cooling Units
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
Research Outputs
Syndicated reports, custom consulting assignments, and facility-level databases.
Facility-level depth
Existing and upcoming facilities tracked across United States.
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KEY QUESTIONS ANSWERED IN THE REPORT
How big is the U.S. data center market?
What is the growth rate of the U.S. data center market?
What are the key trends in the U.S. data center market?
What is the estimated market size in terms of area in the U.S. data center market by 2030?
What is the estimated market size in terms of area in the U.S. data center market by 2030?
Last Refreshed on : October 2026
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