Is Cloud Based Service the Big Thing in the Data Center Market in US?


According to the latest Arizton's market research report, the data center market in US to cross over USD 96 billion by 2026, growing at a CAGR of around 3% during the forecast period.

Data Center Market in US - Growth Analysis

The digitalization of businesses are driving the demand for cloud-based services in data centers. The advancement of technologies such as IoT, big data, and cloud computing have brought many changes in the data center market in US. Government agencies were also involved in migrating their applications to a private cloud environment operated by service providers such as Microsoft, AWS, Oracle, Google, and IBM. Large organizations are shifting to cloud solutions to organize their work on cloud platforms. Cloud computing in the US is witnessing growth due to investments from different service providers. For data centers offering colocation and cloud-based services, the average rack power density has increased over the last few years. The growth of blockchain and cryptocurrency mining which operates at a higher rack power density of over 20 kW is witnessing growth in the data center market in the US.

What’s Trending in the Market?

  • Data center market in the US encourages acquisitions of data centers by real estate and investment firms.
  • In 2020, companies such as fifteenfortyseven Critical Systems Realty, CyrusOne, and Stream Data Center invested around USD 200 million in US.
  • Google has also taken several measures to be environmentally friendly. The company is exploring AIs to achieve higher energy efficiency levels.

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Key Offerings:

  • Market Size & Forecast by Revenue | 2020−2026
  • Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
  • Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography
  • Competitive Landscape – 6 key data centers critical (IT) infrastructure providers, 7 key data center support infrastructure providers, 7 key data center contractors, 12 key data center investors, 23 other prominent critical (IT) infrastructure providers, 23 other prominent support infrastructure providers, 19 other prominent construction contractors, and 19 other prominent data center investors

Data Center Market in US – Geographic Analysis

South East is the developed data center market in US. Recently, more than 35 data centers were developed in the region. Colocation data center providers have a share of over 50% in the overall investment in the region. Virginia is the biggest and most active data center market in the US. Virginia is followed by Alabama and Georgia in terms of investment, with over USD 1.3 billion and USD 1.1 billion, respectively. Alabama received significant investments from hyperscale data center operators Facebook and Google in 2020. The construction of new facilities in the region will offer new opportunities for IT and support infrastructure vendors and contribute significantly to a growth in their revenue. With the increased integration of IoT and DCIM solutions, and enhanced physical security, it contributes high revenue for general construction contractors in US.

Strategies Adopted by Players in the Data Center Market in US

ODM providers are supplying systems that are based on the Open Compute Project (OCP) design, which is contributed by hyperscale providers in the market. ODM server manufacturers are going to be a major challenge to other vendors such as Hewlett Packard Enterprise, Dell Technologies, IBM, Inspur, Lenovo, and Cisco Systems. Hewlett Packard Enterprise is a major vendor in the server market. Servers are in high demand owing to the higher deployment of infrastructure for big data analytics workloads. Players in the data center market in US offering concentrated technologies such as cloud, big data, AI, and IoT-based application workloads. Major drivers that will grow the competition among vendors in the data center market in US are drop in prices of switch ports and the disintegration of hardware and software in network infrastructure offerings. Over the next few years, data center operators will consider the adoption of lithium-ion batteries, fuel cell technology, and intelligent PDUs to improve the efficiency of the facility. Data center operators are selecting those players that provide real-time monitoring and management solutions integrated with cooling systems, creating competition, and prompting players to innovate their solutions.

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