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United States Data Center Market Size, Growth, Analysis: By Component: Solution, Services; By IT Infrastructure: Network, Storage, Server; By Type: Cloud Data Center, Colocation Data Center, Edge Data Center, Hyperscale Data Center, Others; By Design; By Enterprise Size; By End Use; Regional Analysis; Competitive Landscape; 2024-2032
United States Data Center Market Outlook
The United States data center market size reached approximately USD 18.50 billion in 2023. The market is projected to grow at a CAGR of 9.5% between 2024 and 2032, reaching a value of around USD 42.10 billion by 2032.
Key Takeaways
- The United States boasts 2,701 data centers in 2022, followed by Germany, the UK, and China.
- Data centers are concentrated in major US cities such as Seattle, Dallas, Los Angeles, Portland, Chicago, and Atlanta, among others.
- Northern Virginia is a major hub of data centers, attributed to its proximity to physical infrastructure that forms internet foundations.
A data center is a physical facility that houses multiple computers to process, store, and share data. It centralises an organisation's IT operations and provides services such as data storage, management, backup, and recovery. The United States is one of the largest-growing economies in the world, which is likely to boost the growth of public cloud-based data centers in the forecast period.
Furthermore, The IT industry dominates the United States as the largest private sector employer in the country, where data centers are widely used. In recent years, the importance of data centers has increased worldwide due to the increasing digitisation of business processes, cloud usage, and big data. The United States data center market growth can be attributed to changes in working habits, technological advancements and the growth of cloud-based technologies, among others.
Key Trends and Developments
The rising popularity of e-commerce platforms, growing internet users, the rising norm of work-from-home, and technological advancements and innovations are positively impacting the United States data center market growth.
| Date | Company | Action | Location |
| Jun 23rd, 2023 | SBA Communications | Launched an Edge data center | Arlington, Texas, United States |
| July 12th, 2023 | Akamai | Opened three new cloud data centers facilities | United States, France, and India |
| Oct 31st, 2023 | DataBank | Acquired nearly 95 Acres of land for a new data center campus | Atlanta |
| Dec 3rd, 2023 | Prince William County Board of Supervisors | Approved one of the world’s largest data centers | Northern Virginia |
| Factors | Explanation |
| Rise in demand for e-commerce | The surge in the popularity of e-commerce platforms and online retail has increased the demand for data centers as they enable retailers to leverage accumulated data for providing useful customer insights and optimising business processes. |
| Growing internet usage | Data center workloads are increasing amid the rising demand for improving application performance, storage requirements, and mobile data use due to growing internet usage. |
| Rise in work-from-home culture | Data centers and online backups have become vital to helping bridge the technological gap amidst the rising norm of work-from-home. |
| Technological advancements and innovations | Technological advancements and the emergence of technologies such as AI and machine learning are expected to surge the spending on flexible data center strategies with liquid cooling strategies. |
United States Data Center Market Trends
E-commerce companies are investing heavily in new data centers to improve their management practices. For instance, Walmart is one of the major e-commerce brands contributing to the data center boom in the United States.
E-commerce companies can leverage the data that they accumulate and use it to form incredibly useful insights on their customers and optimise their business processes. By quietly observing their consumption habits, companies can learn not only about current behaviours but also about future trends.
The emergence of 5G technology, machine learning, and artificial intelligence is significantly surging data volume, aiding the United States data center market growth. Hyperscale data centers are significantly gaining popularity as they can scale up quickly to meet rising data volumes, provide flexibility to users, and reduce downtimes. Moreover, the rising demand for cloud services and the growing requirements for efficient and reliable capacity is surging the adoption of hyperscale data centers.
Market Segmentation
“United States Data Center Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
| Market Breakup | Categories |
| Component | Solution, Services |
| IT Infrastructure | Network, Server, Storage |
| Type | Cloud Data Center, Colocation Data Center, Edge Data Center, Hyperscale Data Center, Others |
| Design | Traditional, Containerised, Modular |
| Enterprise Size | Small and Medium Enterprises, Large Enterprises |
| End Use | BFSI, IT and Telecom, Manufacturing and Automotive, Government, Healthcare, Gaming and Entertainment, Retail and E-Commerce, Others |
| Region | New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, Far West |
The demand for colocation data centers is expected to increase due to its positive attributes including scalability, physical security, and better connectivity.
As per the United States data center market analysis, the demand for colocation data centers (colo) is increasing due to their ability to provide an ideal environment for accommodating hybrid cloud infrastructure, provide high-speed connectivity, and ensure strict security measures, among others.
Under this facility, multiple clients rent a floor, rack space, and equipment from a third-party supplier to facilitate their own data center needs. This type of data center helps small businesses with limited IT resources to get computing power and storage.
The increasing launch of colocation solutions is also propelling the United States data center market. For instance, in August 2023, Digital Realty announced the availability of PlatformDIGITAL®, high-density colocation services that enable businesses to overcome proximity and processing challenges associated with unstructured data.
Meanwhile, the demand for edge data centers is increasing in the US amid the rise of streaming devices, personal devices, and smart technology. As this data center is located at the edge, it creates lower latency and increases IT security and reliability. In addition, hyperscale data centers are increasingly being developed due to their improved cooling efficiency, enhanced energy efficiency, and improved economies of scale.
In December 2023, Digital Realty established a joint venture with Blackstone Inc. to develop four hyperscale data center campuses in Frankfurt, Paris, and Northern Virginia to support nearly 500 megawatts (MW) of total IT load.
The demand for data centers in BFSI is expected to increase due to the former’s ability to ensure safety and security.
The BFSI sector represents a significant portion of the United States data center market share. In the fast-moving world of finance, data centers play a vital role in ensuring the security and efficiency of transactions. Financial institutions include organisations such as banks and investment firms that rely on the data center to control and process huge amounts of data related to day-to-day operations.
The market is anticipated to grow at a healthy pace in the forecast period as data centers provide advanced security measures, such as biometric authentication and 24/7 monitoring, to ensure that financial data is guarded against unauthorised access and cyber threats.
Moreover, the United States data center market expansion is being fuelled by the growing adoption of digital technologies such as Electronic Patient Records (EPR), geolocation services, and nurse call stations in the healthcare sector. Data centers are crucial to streamline the management and storage of medical prescriptions and records.
Meanwhile, the retail and e-commerce sector uses data centers to prevent downtimes, enhance security, improve flexibility and power online applications and services. Retailers are increasingly focusing on providing a personalised and efficient shopping experience to customers, surging the demand for data centers to enhance operational efficiency, improve productivity, and reduce costs.
Competitive Landscape
United States data center market players are focusing on technological advancements and innovations to gain a competitive edge
| Company | Founded | Headquarters | Description |
| Oracle Corp. | 1977 | Texas, United States | American multinational computer technology company with a global data center network offering physical security and monitoring solutions |
| American Tower Corporation | 1995 | Massachusetts, United States | Provider of digital communications infrastructure with assets and solutions including wireless and broadcast towers |
| Cyxtera Technologies Inc. | 2017 | Florida, United States | Pioneer of data center and interconnection services with a network of over 61 data centers |
| Iron Mountain, Inc. | 1951 | Massachusetts, United States | American enterprise information management services company and a member of the FTSE4Good index |
Other players in the United States data center market are Alphabet Inc., Equinix, Inc., Digital Realty Trust Inc., CyrusOne Inc., DataBank, Ltd., NTT Ltd., Flexential Corp., and Vantage Data Centers Management Company, LLC, among others.
In October 2020, DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed services, acquired 95 acres of land near Lithia Springs in Atlanta. This acquisition is aimed at dramatically expand its capacity and ability to meet the growing regional demand for colocation space and power over the next decade. DataBank helps the world's largest enterprises, technology, and content providers ensure their data and applications are secure, compliant, and ready to scale to meet the needs of the artificial intelligence era.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Component |
|
| Breakup by IT Infrastructure |
|
| Breakup by Type |
|
| Breakup by Design |
|
| Breakup by Enterprise Size |
|
| Breakup by End Use |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Opportunities and Challenges in the Market
8 North America Data Center Market Overview
8.1 Key Industry Highlights
8.2 North America Data Center Historical Market (2018-2023)
8.3 North America Data Center Market Forecast (2024-2032)
8.4 North America Data Center Market Share by Country
8.4.1 United States
8.4.2 Canada
9 United States Data Center Market Overview
9.1 Key Industry Highlights
9.2 United States Data Center Historical Market (2018-2023)
9.3 United States Data Center Market Forecast (2024-2032)
10 United States Data Center Market by Component
10.1 Solution
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Services
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
11 United States Data Center Market by IT Infrastructure
11.1 Network
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Storage
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 Server
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
12 United States Data Center Market by Type
12.1 Cloud Data Center
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Colocation Data Center
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Edge Data Center
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Hyperscale Data Center
12.4.1 Historical Trend (2018-2023)
12.4.2 Forecast Trend (2024-2032)
12.5 Others
13 United States Data Center Market by Design
13.1 Traditional
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 Containerised
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Modular
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
14 United States Data Center Market by Enterprise Size
14.1 Small and Medium Enterprises
14.1.1 Historical Trend (2018-2023)
14.1.2 Forecast Trend (2024-2032)
14.2 Large Enterprises
14.2.1 Historical Trend (2018-2023)
14.2.2 Forecast Trend (2024-2032)
15 United States Data Center Market by End Use
15.1 BFSI
15.1.1 Historical Trend (2018-2023)
15.1.2 Forecast Trend (2024-2032)
15.2 IT and Telecom
15.2.1 Historical Trend (2018-2023)
15.2.2 Forecast Trend (2024-2032)
15.3 Manufacturing and Automotive
15.3.1 Historical Trend (2018-2023)
15.3.2 Forecast Trend (2024-2032)
15.4 Government
15.4.1 Historical Trend (2018-2023)
15.4.2 Forecast Trend (2024-2032)
15.5 Healthcare
15.5.1 Historical Trend (2018-2023)
15.5.2 Forecast Trend (2024-2032)
15.6 Gaming and Entertainment
15.6.1 Historical Trend (2018-2023)
15.6.2 Forecast Trend (2024-2032)
15.7 Retail and E-Commerce
15.7.1 Historical Trend (2018-2023)
15.7.2 Forecast Trend (2024-2032)
15.8 Others
16 United States Data Center Market by Region
16.1 New England
16.1.1 Historical Trend (2018-2023)
16.1.2 Forecast Trend (2024-2032)
16.2 Mideast
16.2.1 Historical Trend (2018-2023)
16.2.2 Forecast Trend (2024-2032)
16.3 Great Lakes
16.3.1 Historical Trend (2018-2023)
16.3.2 Forecast Trend (2024-2032)
16.4 Plains
16.4.1 Historical Trend (2018-2023)
16.4.2 Forecast Trend (2024-2032)
16.5 Southeast
16.5.1 Historical Trend (2018-2023)
16.5.2 Forecast Trend (2024-2032)
16.6 Southwest
16.6.1 Historical Trend (2018-2023)
16.6.2 Forecast Trend (2024-2032)
16.7 Rocky Mountain
16.7.1 Historical Trend (2018-2023)
16.7.2 Forecast Trend (2024-2032)
16.8 Far West
16.8.1 Historical Trend (2018-2023)
16.8.2 Forecast Trend (2024-2032)
17 Market Dynamics
17.1 SWOT Analysis
17.1.1 Strengths
17.1.2 Weaknesses
17.1.3 Opportunities
17.1.4 Threats
17.2 Porter’s Five Forces Analysis
17.2.1 Supplier’s Power
17.2.2 Buyer’s Power
17.2.3 Threat of New Entrants
17.2.4 Degree of Rivalry
17.2.5 Threat of Substitutes
17.3 Key Indicators for Demand
17.4 Key Indicators for Price
18 Competitive Landscape
18.1 Market Structure
18.2 Company Profiles
18.2.1 Alphabet Inc.
18.2.1.1 Company Overview
18.2.1.2 Product Portfolio
18.2.1.3 Demographic Reach and Achievements
18.2.1.4 Certifications
18.2.2 Oracle Corp.
18.2.2.1 Company Overview
18.2.2.2 Product Portfolio
18.2.2.3 Demographic Reach and Achievements
18.2.2.4 Certifications
18.2.3 American Tower Corporation
18.2.3.1 Company Overview
18.2.3.2 Product Portfolio
18.2.3.3 Demographic Reach and Achievements
18.2.3.4 Certifications
18.2.4 Equinix, Inc.
18.2.4.1 Company Overview
18.2.4.2 Product Portfolio
18.2.4.3 Demographic Reach and Achievements
18.2.4.4 Certifications
18.2.5 Digital Realty Trust Inc.
18.2.5.1 Company Overview
18.2.5.2 Product Portfolio
18.2.5.3 Demographic Reach and Achievements
18.2.5.4 Certifications
18.2.6 Cyxtera Technologies Inc.
18.2.6.1 Company Overview
18.2.6.2 Product Portfolio
18.2.6.3 Demographic Reach and Achievements
18.2.6.4 Certifications
18.2.7 CyrusOne Inc.
18.2.7.1 Company Overview
18.2.7.2 Product Portfolio
18.2.7.3 Demographic Reach and Achievements
18.2.7.4 Certifications
18.2.8 NTT Ltd.
18.2.8.1 Company Overview
18.2.8.2 Product Portfolio
18.2.8.3 Demographic Reach and Achievements
18.2.8.4 Certifications
18.2.9 Iron Mountain, Inc.
18.2.9.1 Company Overview
18.2.9.2 Product Portfolio
18.2.9.3 Demographic Reach and Achievements
18.2.9.4 Certifications
18.2.10 DataBank, Ltd.
18.2.10.1 Company Overview
18.2.10.2 Product Portfolio
18.2.10.3 Demographic Reach and Achievements
18.2.10.4 Certifications
18.2.11 Flexential Corp.
18.2.11.1 Company Overview
18.2.11.2 Product Portfolio
18.2.11.3 Demographic Reach and Achievements
18.2.11.4 Certifications
18.2.12 Vantage Data Centers Management Company, LLC
18.2.12.1 Company Overview
18.2.12.2 Product Portfolio
18.2.12.3 Demographic Reach and Achievements
18.2.12.4 Certifications
18.2.13 Others
19 Key Trends and Developments in the Market
List of Key Figures and Tables
1. North America Data Center Market: Key Industry Highlights, 2018 and 2032
2. United States Data Center Market: Key Industry Highlights, 2018 and 2032
3. United States Data Center Historical Market: Breakup by Component (USD Billion), 2018-2023
4. United States Data Center Market Forecast: Breakup by Component (USD Billion), 2024-2032
5. United States Data Center Historical Market: Breakup by IT Infrastructure (USD Billion), 2018-2023
6. United States Data Center Market Forecast: Breakup by IT Infrastructure (USD Billion), 2024-2032
7. United States Data Center Historical Market: Breakup by Type (USD Billion), 2018-2023
8. United States Data Center Market Forecast: Breakup by Type (USD Billion), 2024-2032
9. United States Data Center Historical Market: Breakup by Design (USD Billion), 2018-2023
10. United States Data Center Market Forecast: Breakup by Design (USD Billion), 2024-2032
11. United States Data Center Historical Market: Breakup by Enterprise Size (USD Billion), 2018-2023
12. United States Data Center Market Forecast: Breakup by Enterprise Size (USD Billion), 2024-2032
13. United States Data Center Historical Market: Breakup by End Use (USD Billion), 2018-2023
14. United States Data Center Market Forecast: Breakup by End Use (USD Billion), 2024-2032
15. United States Data Center Historical Market: Breakup by Region (USD Billion), 2018-2023
16. United States Data Center Market Forecast: Breakup by Region (USD Billion), 2024-2032
17. United States Data Center Market Structure
Key Questions Answered in the Report
In 2023, the market reached an approximate value of USD 18.50 billion.
The market is estimated to grow at a CAGR of 9.5% between 2024 and 2032.
The market is estimated to witness a healthy growth during 2024-2032 to reach around USD 42.10 billion by 2032.
The major market drivers are the rising use of internet, the norm of work-from-home, and an increase in data generation.
The key trends aiding the market expansion include technological advancements and innovations, the introduction of artificial intelligence, and a strong future of 5G.
The major regions in the market are New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.
The various components of data center are solution and services.
The different end uses of data center are BFSI, IT and telecom, manufacturing and automotive, government, healthcare, gaming and entertainment, retail and e-commerce, others.
The major players in the market are Alphabet Inc., Oracle Corp., American Tower Corporation, Equinix, Inc., Digital Realty Trust Inc., Cyxtera Technologies Inc., CyrusOne Inc., NTT Ltd., Iron Mountain, Inc., DataBank, Ltd., Flexential Corp., and Vantage Data Centers Management Company, LLC, among others.
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