U.S. Data Center Market Landscape 2024-2029

100 pages

xx tables

xx charts

5 region

1 countries

xx company

10 segments

Purchase Options

$4500.00
$5500.00
$6500.00
$4000.00

Have a question?

Please get in touch with our team in case of any queries

+1-312-235-2040

THE U.S. DATA CENTER MARKET SIZE WITNESSED INVESTMENTS OF USD 101.59 BILLION IN 2023 AND WILL WITNESS INVESTMENTS OF USD 148.52 BILLION BY 2029, GROWING AT A CAGR OF 6.54% DURING THE FORECAST PERIOD.

The U.S. Data Center Market Size, Share, & Trends Analysis by

  1. Facility Type: Hyperscale Data Centers, Colocation Data Centers, and Enterprise Data Centers
  2. Infrastructure: IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and General Construction
  3. IT Infrastructure: Server Infrastructure, Storage Infrastructure, and Network Infrastructure
  4. Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, Power Distribution Units, and Other Electrical Infrastructure
  5. Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
  6. Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, Economizers & Evaporative Coolers, and Other Cooling Units
  7. Cooling Techniques: Air-based and Liquid-based
  8. General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Physical Security, Fire Detection & Suppression, and DCIM
  9. Tier Standard: Tier I & II, Tier III, and Tier IV
  10. Geography: U.S. (South-Eastern U.S., South-Western U.S., Western U.S., Mid-Western U.S., and North-Eastern U.S.)

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.

Customize this Report

This report includes market data points, ranging from trend
analyses to market estimates & forecasts that you can customize

THE U.S. DATA CENTER MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE (INVESTMENT)USD 148.52 Billion (2029)
MARKET SIZE (AREA)24.30 million sq. Feet (2029)
MARKET SIZE (POWER CAPACITY)4,563.0 MW (2029)
CAGR - INVESTMENT (2023-2029)6.54%
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
MARKET SEGMENTSFacility Type, Infrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standard, and Geography
GEOGRAPHIC ANALYSISU.S. (South-Eastern U.S., South-Western U.S., Western U.S., Mid-Western U.S., and North-Eastern U.S.)
Interested in this Report?

Download a Sample!

MARKET OUTLOOK

The U.S. data center market will witness investments of USD 148.52 billion by 2029, growing at a CAGR of 6.54% during the forecast period. The market is aided by the high use of cloud-based services across regions, followed by digitalization initiatives, the demand for streaming online entertainment content at high speeds, the deployment of Artificial Intelligence, 5G services, and other factors. The U.S. data center market witnessed investments from several colocation, hyperscale, and data center operators. Also, the south-eastern US data center market is the most developed and mature compared with other states, holding the highest share.

KEY TRENDS

Data Center Operators Making Efforts to be More Sustainable and Environmentally Friendly

  • The increase in energy consumption and carbon emissions has led the operators to address these issues. Many companies in the United States data center market purchase clean, renewable energy to power their current and future facilities, reducing their environmental impact.
  • Despite the high energy cost, major companies like Google, Microsoft, Digital Realty, CyrusOne, Meta (Facebook), QTS Realty Trust, and Amazon Web Services continue to procure renewable energy to reduce emissions, achieve carbon neutrality, and promote sustainability.
  • In January 2024, Microsoft signed a new solar Power Purchase Agreement (PPA) of 125 MW with Apex Clean Energy in Ohio. The 125 MW Wheatsborough Solar project is currently being developed and slated to come online by 2025.

AI Transforming the Landscape of the U.S. Data Center Market

  • The AI industry is set to increase the size of hyperscale data centers significantly. Even though the current AI investments haven’t fully compensated for the growth in hyperscale data centers, the capacity of these data centers, especially for AI workloads, is expected to almost triple in the next six years.
  • Data centers will play a crucial role in the success of AI, but they also pose a challenge for providers. The high computational performance and energy consumption of GPUs and other specialized chips used in AI, such as ASICs and FPGAs, require massive power as rack densities rapidly increase.
  • In October 2023, Meta resumed building its data centers in Temple, Texas, and Kuna, Idaho. The company updated its data center design to accommodate more powerful GPUs for AI work in the coming year. These centers will be the first to use this new design.

Sustainable and Innovative Data Center Technologies

  • There is an increasing focus on sustainable and innovative data center technologies. With the growing awareness of environmental concerns and the need for energy efficiency, U.S. data center market operators are investing in cutting-edge solutions.
  • Innovations like liquid cooling systems and advanced data center designs are being implemented to enhance energy efficiency and reduce heat emissions. The development of Artificial Intelligence (AI) and Machine Learning (ML) solutions is aiding in predictive maintenance, optimizing operations, and reducing energy consumption.
  • Hydrotreated Vegetable Oil (HVO) fuel is being used to replace traditional diesel generators. In September 2023, Vantage Data Centers recently shared its plan to use HVO fuel instead of traditional diesel fuel in its generators. The company will likely deploy HVO fuel for generators in Santa Clara, California.

SEGMENTATION INSIGHTS

  • Numerous innovative power and cooling systems have recently been launched, emphasizing sustainability. Infrastructure providers are increasingly concentrating on developing products that minimize environmental impact.
  • In recent years, operators in the U.S. data center market have been implementing new and energy-efficient cooling systems intending to reduce power consumption by up to 50%. This trend is expected to continue in the forecast period as U.S. data center market vendors continually invest in developing more efficient products.
  • The US data center market for liquid immersion and direct-liquid cooling solutions is experiencing strong growth owing to the increased deployment of artificial intelligence and machine learning workloads during the forecast period.
  • Traditionally, data center operators have adopted VRLA batteries; however, data center operators are now moving towards lithium-ion batteries. For instance, the Ashburn data center campus of EdgeCore Digital Infrastructure is equipped with lithium-ion batteries in UPS systems.
  • Traditionally, diesel fuels have been the go-to choice for operators in the U.S. data center market due to their reliability. However, with a growing emphasis on reducing carbon emissions and achieving sustainability goals, there's a noticeable shift towards more eco-friendly alternatives. One such alternative is Hydrotreated Vegetable Oil (HVO), a renewable diesel fuel gaining popularity for its environmental benefits.
  • In addition to constructing and developing data centers, the U.S. data center market companies emphasize strengthening physical security, fire detection systems & monitoring and managing the facilities through a real-time Data Center Infrastructure Management (DCIM) system.

GEOGRAPHICAL ANALYSIS

  • Northern Virginia is evolving into a multi-state market characterized by rapid data center developments spanning hundreds of acres. Although there's a trend towards establishing large data center campuses in peripheral regions, smaller opportunities remain available in conventional data center clusters like Ashburn.
  • The state of Georgia is actively showcasing its support for the data center industry through the implementation of tax exemptions on high-technology data center equipment, extending this benefit until 2033. This initiative draws significant attention to the Atlanta market, where numerous data center projects are currently in development or planning phases.
  • Constructing data centers in the Midwestern U.S. is a significant focal point for hyperscale operators as they develop facilities in key locations like Illinois, Iowa, Nebraska, and Ohio. This market is anticipated to expand steadily, driven by the activities of major hyperscale companies.
  • Texas is becoming a thriving data center hub in the U.S. owing to significant activities from the colocation and hyperscale operators. Pre-leasing remains a common trend, with most new constructions committed to single users before construction begins.
  • The Western U.S. region stands as a developed and mature market for data centers, hosting all the major hyperscalers like Google, Meta (formerly Facebook), and Microsoft in prime locations such as Oregon, Idaho, Utah, and California. Given its preferred location for hyperscale operators, investments in this area are anticipated to increase throughout the forecast period.
  • The growth of the data center market in New York and New Jersey is primarily driven by the continuous demand for data center space, positioning the area as a key connectivity hub within the heart of New York City's financial center. Compared to other regions, this area is anticipated to see lower investments in hyperscale data centers. However, investments in edge data centers are projected to grow considerably in the coming years, particularly in areas where space is available at a premium price.

VENDOR LANDSCAPE

  • The U.S. data center market features a variety of active participants and vendors, contributing to its expansion. Those vendors that provide innovative and advanced technologies stand a better chance of securing a larger US data center market share throughout the forecast period.
  • Some of the top IT and support infrastructure providers active in the U.S. data center market include Arista Networks, Broadcom, Cisco Systems, Hewlett Packard Enterprise, Dell Technologies, IBM, NetApp, ABB, Caterpillar, Cummins, Eaton, Legrand, Schneider Electric, Vertiv, STULZ, Rolls-Royce Power Systems, Siemens, Delta Electronics and others.
  • The top colocation operators involved in the expansion and development of data center facilities across the US data center market include Equinix, Digital Realty, Iron Mountain, STACK Infrastructure, Vantage Data Centers, CyrusOne, Switch, NTT DATA, Compass Datacenters, DataBank, QTS Realty Trust, Aligned Data Centers, and others.
  • Hyperscale operators such as Meta (Facebook), Microsoft, Amazon Web Services (AWS), Google, and Apple are expanding their presence by developing new data center campuses across the United States.
  • The U.S. data center market will likely witness new players' entry. In 2023, some new entrants include Rowan Digital Infrastructure, Crane Data Centers, NE Edge, Edged Energy, Corscale Data Centers, Quantum Loophole, and others. However, these new players will likely face competition from local and established global players.

Frequently Asked Questions

How big is the U.S. data center market?

The U.S. data center market size was valued at USD 101.59 billion in 2023 and is expected to reach USD 148.52 billion by 2029.

What is the growth rate of the U.S. data center market?

The U.S. data center market share by investment is growing at a CAGR of 6.54% during the forecast period.

What is the estimated market size in terms of area in the U.S. data center market by 2029?

Regarding area, the U.S. data center market is expected to reach 24.30 million square feet by 2029.

How many MW of power capacity is expected to reach the U.S. data center market by 2029?

In the U.S. data center market, power capacity is expected to reach 4,563.0 MW by 2029.

What are the key trends in the U.S. data center market?

Some key trends in the U.S. data center market include 5G enhancing the demand for edge data centers, adoption of advanced UPS batteries, rise in rack power density, sustainable and innovative data center technologies, deployment of microgrids in data centers, and AI transforming the landscape of the market.

The U.S. data center market by investment is projected to surpass USD 148.52 billion by 2029, growing at a CAGR of 6.54% from 2023 to 2029.

The following factors are likely to contribute to the growth of the U.S. data center market during the forecast period:

  • Significant Development of Data Center Facilities
  • Ongoing Investments by Hyperscale Operators in the US
  • Rise in M&A as well as Joint Venture Activities
  • Tax and Sales Incentives are a Major Boost for Data Center Growth
  • Increase in the Adoption of Cloud-Based Services and the Shift from On-Premises to Cloud Platforms
  • Enhance Connectivity Driving Growth in the US Data Center Market
  • Data Centers are Becoming more Important Due to Big Data, the Internet of Things (IoT), as well as Augmented Reality (AR) and Virtual Reality(VR)

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the U.S. data center market and its market dynamics for 2024−2029. It provides a detailed overview of several market growth enablers, restraints, and trends. The study also includes the industry's demand and supply aspects.

Segmentation by Facility Type

  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers

Segmentation by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Segmentation by IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Segmentation by Cooling Techniques

  • Air-based
  • Liquid-based

Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security
  • Fire Detection & Suppression
  • DCIM

Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

Segmentation by Geography

  • The U.S.
    • South-Eastern U.S.
    • South-Western U.S.
    • Western U.S.
    • Mid-Western U.S.
    • North-Eastern U.S.

For more details, please reach us at [email protected]

1.    ABOUT ARIZTON
2.    ABOUT OUR DATA CENTER CAPABILITIES
3.    WHAT’S INCLUDED
4.    SEGMENTS INCLUDED
5.    RESEARCH METHODOLOGY
6.    MARKET AT GLANCE
7.    PREMIUM INSIGHTS
8.    INVESTMENT OPPORTUNITIES
8.1.    INVESTMENT: MARKET SIZE & FORECAST
8.2.    AREA: MARKET SIZE & FORECAST
8.3.    POWER CAPACITY: MARKET SIZE & FORECAST
9.    MARKET DYNAMICS
9.1.    MARKET OPPORTUNITIES & TRENDS
9.2.    MARKET GROWTH ENABLERS
9.3.    MARKET RESTRAINTS
9.4.    SITE SELECTION CRITERIA
10.    FACILITY TYPE SEGMENTATION
10.1.    HYPERSCALE DATA CENTERS
10.2.    COLOCATION DATA CENTERS
10.3.    ENTERPRISE DATA CENTERS
11.    INFRASTRUCTURE SEGMENTATION
11.1.    IT INFRASTRUCTURE
11.2.    ELECTRICAL INFRASTRUCTURE
11.3.    MECHANICAL INFRASTRUCTURE
11.4.    COOLING SYSTEMS
11.5.    COOLING TECHNIQUES
11.6.    GENERAL CONSTRUCTION
11.7.    TIER STANDARDS SEGMENTATION
12.    GEOGRAPHY SEGMENTATION
13.    US
13.1.    MARKET SNAPSHOT & KEY HIGHLIGHTS
13.2.    DATA CENTER MARKET BY INVESTMENT
13.3.    DATA CENTER MARKET BY INFRASTRUCTURE
13.4.    DATA CENTER MARKET BY AREA
13.5.    DATA CENTER MARKET BY POWER CAPACITY
13.6.    DATA CENTER MARKET BY SUPPORT INFRASTRUCTURE
13.7.    DATA CENTER MARKET BY IT INFRASTRUCTURE
14.    SOUTH-EASTERN US
14.1.    KEY HIGHLIGHTS & INVESTMENTS
14.2.    MARKET BY INVESTMENT
14.3.    KEY AREA OF DEVELOPMENTS AND FTZS
14.4.    MARKET BY AREA
14.5.    POWER CAPACITY & RENEWABLE ENERGY ADOPTION
14.6.    MARKET BY POWER CAPACITY
14.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
14.8.    MARKET BY INFRASTRUCTURE
15.    MID-WESTERN US
15.1.    KEY INVESTORS & INVESTMENTS
15.2.    MARKET BY INVESTMENT
15.3.    KEY AREA OF DEVELOPMENT AND FTZS
15.4.    MARKET BY AREA
15.5.    POWER CAPACITY & RENEWABLE ENERGY ADOPTION
15.6.    MARKET BY POWER CAPACITY
15.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
15.8.    MARKET BY INFRASTRUCTURE
16.    SOUTH-WESTERN US 
16.1.    KEY INVESTORS & INVESTMENTS
16.2.    MARKET BY INVESTMENT
16.3.    KEY AREA OF DEVELOPMENT & FTZS
16.4.    MARKET BY AREA
16.5.    POWER CAPACITY & RENEWABLE ENERGY ADOPTION
16.6.    MARKET BY POWER CAPACITY
16.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
16.8.    MARKET BY INFRASTRUCTURE
17.    WESTERN US
17.1.    KEY INVESTORS & INVESTMENTS
17.2.    MARKET BY INVESTMENT
17.3.    KEY AREA OF DEVELOPMENT AND FTZS  
17.4.    MARKET BY AREA
17.5.    POWER CAPACITY & RENEWABLE ENERGY ADOPTION
17.6.    MARKET BY POWER CAPACITY
17.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
17.8.    MARKET BY INFRASTRUCTURE
18.    NORTH-EASTERN US
18.1.    KEY INVESTORS & INVESTMENTS
18.2.    MARKET BY INVESTMENT
18.3.    KEY AREA & DEVELOPMENT AND FTZS
18.4.    MARKET BY AREA
18.5.    POWER CAPACITY & RENEWABLE ENERGY ADOPTION
18.6.    MARKET BY POWER CAPACITY
18.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
18.8.    MARKET BY INFRASTRUCTURE
18.9.    MARKET PARTICIPANTS
19.    IT INFRASTRUCTURE PROVIDERS
19.1.    SUPPORT INFRASTRUCTURE PROVIDERS
19.2.    DATA CENTER CONTRACTORS & SUBCONTRACTORS 
19.3.    DATA CENTER INVESTORS
19.4.    NEW ENTRANTS
20.    QUANTITATIVE SUMMARY
21.    APPENDIX
21.1.    ABBREVIATIONS
21.2.    DEFINITIONS
21.3.    SEGMENTAL COVERAGE

Select a license type that suits your business needs

Single User Licence

$4500.00
  • Report accessible by one user only
  • Free 10% or 3 days of customization
  • Free post-sale service assistance
  • Continuous support through email

5 User Licence

$5500.00
  • Report accessible by 5 users within the organization
  • Free 15% or 4.5 days of customization
  • Continuous support through email and telephone
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge

Corporate Licence

$6500.00
  • Free Datasheet worth $1500
  • Report accessible by the entire organization
  • Free 20% or 6 days of customization
  • Free post-sale service assistance
  • Continuous support through email and telephone
  • Direct access to lead analysts
  • Free analyst hour
  • Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge

Datasheet Licence

$4000.00
  • Report accessible by 1 user only
  • Free 15% or 32 hours of customization
  • Free post-sale service assistance
  • Direct access to lead analysts

Frequently Asked Questions

How big is the U.S. data center market?

The U.S. data center market size was valued at USD 101.59 billion in 2023 and is expected to reach USD 148.52 billion by 2029.

What is the growth rate of the U.S. data center market?

The U.S. data center market share by investment is growing at a CAGR of 6.54% during the forecast period.

What is the estimated market size in terms of area in the U.S. data center market by 2029?

Regarding area, the U.S. data center market is expected to reach 24.30 million square feet by 2029.

How many MW of power capacity is expected to reach the U.S. data center market by 2029?

In the U.S. data center market, power capacity is expected to reach 4,563.0 MW by 2029.

What are the key trends in the U.S. data center market?

Some key trends in the U.S. data center market include 5G enhancing the demand for edge data centers, adoption of advanced UPS batteries, rise in rack power density, sustainable and innovative data center technologies, deployment of microgrids in data centers, and AI transforming the landscape of the market.