Austin Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2031)

The Austin Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), by Tier Type (Tier 1&2, Tier 3, Tier 4), by Absorption (Utilized (Colocation Type (Retail, Wholescale, Hyperscale), End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), Non-Utilized). The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.

Austin Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2031)

Austin Data Center Market Size

Austin Data Center Market Summary
Study Period 2019 - 2031
Base Year For Estimation 2024
Forecast Data Period 2025 - 2031
Historical Data Period 2019 - 2023
CAGR 7.00 %
Market Concentration High

Major Players

Austin Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Austin Data Center Market with other markets in Technology, Media and Telecom Industry

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Austin Data Center Market Analysis

The Austin Data Center Market is expected to register a CAGR of 7% during the forecast period.

  • Artificial intelligence (AI) with machine learning (ML) necessitates the development of brand-new data center infrastructure more than any other application. Artificial intelligence (AI) and machine learning (ML) may require three times the power density of traditional data processing, necessitating a revolution in data center architecture. This is also dependent on sophisticated cooling systems to support the larger output. The intense nature of AI and ML computations may also result in a significant dispersion of computational, memory, and storage resources among many processors in a computational cluster.
  • The developments that are happening toward the data power will drive the studied market. For instance, in April 2022, Austin Commercial, a division of Austin Industries and one of the country's most diverse builders, announced an enterprise collaboration with Versatile. This construction technology pioneer uses artificial intelligence (AI) and the Internet of Things (IoT) to optimize building processes. Versatile's CraneView, which automatically collects and analyses productivity data from construction sites, is the first to be employed by a Texas-based general contractor.
  • A data center must adhere to the following specification to be defined as a Tier III facility. The facility should offer N+1 (the amount required for operation plus a backup) fault tolerance. Also, the Tier III facility providers can undergo routine maintenance without a hiccup in the overall operations. However, unplanned maintenance and emergencies may cause problems affecting the system. These problems may potentially affect customer-facing operations.
  • These data center facilities provide a 99.982% uptime. The companies using these Tier III facilities are often growing companies or businesses that are considerably larger than the average SMBs (Small to Medium Businesses). These Tier III facilities also offer most of the features of a Tier IV infrastructure facility without some elite protection. For instance, enterprises can leverage the advantage of dual power sources and redundant cooling as the network streams are fully backed up.
  • On the flip side, the country's commercial real estate has been constantly evolving and changing due to the continued integration of technology at all levels of the industry and across all property types. As more companies have been transitioning toward cloud computing with major vendors expanding their capacities has been influencing land prices; for instance, Amazon Web Services (AWS) currently has cloud infrastructure in 22 regions and has predicted that new data centers may be needed in hundreds of regions to keep up with demand.
  • According to North American Data Centers Report, the strong leasing activity during the second quarter of the pandemic stemmed from hyperscale companies, as many of these tenants pulled forward their requirements due to the distributed workforce and the work-from-home lifestyle. In addition to remote work, online gaming, social media, video streaming, and e-commerce drove leasing activity during the pandemic. Colocation service providers and cloud have been benefactors of rising SaaS and network customer demand from the pandemic response necessitating remote working and educating. In addition, these services are particularly recession-resistant, and demand for services has been increasing, translating to data center construction projects remaining in progress to ensure they could meet demand.

Austin Data Center Industry Overview

The Austin Data Center market is consolidated with the presence of major players like Digital Realty Trust, Inc., DataBank, CyrusOne, Switch incetc. The companies continuously invest in strategic partnerships and product developments to gain substantial market share. Some of the recent developments in the market are:

  • In May 2023, Skybox Datacenters and real estate developer Prologis are collaborating to build a massive data center facility in Austin, Texas. Skybox, as first reported by Data Centre Frontier (DCF), has revealed plans for PowerCampus Austin, a 600MW facility spread across 160 acres in northeast Austin's Hutto neighborhood. In collaboration with logistics real estate company Prologis, the facility could house up to four million square feet (371,600 square meters) of data center space. Two 300MW private substations would be built on the property. Skybox and Prologis want to construct 6 to 8 buildings with data centers ranging from 24 to 48MW. The 72MW concept envisions a three-story, 700,000 sq ft (65,000 sqm) structure.
  • In September 2022, Logix Fibre Networks has agreed to construct fiber into Sabey Data Centres' new Round Rock data center facility. Logix has announced a capital commitment of USD100 million for 5G growth initiatives and network modernization. Sabey data center tenants will have more connectivity options across Texas due to Logix's network of 295,000+ fiber miles and 100+ on-net data centers. Logix's new offering at Sabey's data center delivers connectivity and extended interconnection opportunities closer to where businesses work in Austin, Texas, and beyond.

Austin Data Center Market Leaders

  1. Digital Realty Trust, Inc.

  2. DataBank Ltd

  3. CyrusOne LLC

  4. Switch, Inc.

  5. Sabey Data Center Properties LLC

  6. *Disclaimer: Major Players sorted in no particular order
Austin Data Center Market Major Players
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Austin Data Center Market News

  • January 2023 : NTT intends to build a new data center in Texas. NTT filed for a new data center dubbed 'TX3 Data Centre' with the Texas Department of Licensing and Regulation (TDLR) . According to the business, the 230,000 square foot (21,350 square metres) facility includes a data center and a two-story office. The corporation intends to invest USD110 million in the project, which is scheduled to start building in March 2023 and finish in April 2024.
  • December 2022 : Equinix, Inc., the world's digital infrastructure firm, announced the first pledge by a colocation data centre operator to reduce overall power consumption by increasing operating temperature ranges within its data centres. Equinix will begin defining a multi-year global roadmap for thermal operations within its data centres immediately, aiming for much more efficient cooling and lower carbon footprints while maintaining the premium operating environment for which Equinix is recognized. This programme is expected to help thousands of Equinix customers to reduce the Scope 3 carbon emissions connected with their data centre operations over time, as supply chain sustainability becomes an increasingly essential aspect of today's enterprises' total environmental activities.

Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. KEY INDUSTRY TRENDS

  • 4.1 Smartphone Users
  • 4.2 Data Traffic per Smartphone
  • 4.3 Mobile Data Speed
  • 4.4 Broadband Data Speed
  • 4.5 Regulatory Framework
  • 4.6 Value Chain Analysis

5. MARKET OUTLOOK

  • 5.1 IT Load Capacity
  • 5.2 Raised Floor Space
  • 5.3 Number of Racks

6. MARKET SEGMENTATION

  • 6.1 DC Size
    • 6.1.1 Small
    • 6.1.2 Medium
    • 6.1.3 Large
    • 6.1.4 Massive
    • 6.1.5 Mega
  • 6.2 Tier Type
    • 6.2.1 Tier 1 & 2
    • 6.2.2 Tier 3
    • 6.2.3 Tier 4
  • 6.3 Absorption
    • 6.3.1 Utilized
    • 6.3.1.1 Colocation Type
    • 6.3.1.1.1 Retail
    • 6.3.1.1.2 Wholesale
    • 6.3.1.1.3 Hyperscale
    • 6.3.1.2 End User
    • 6.3.1.2.1 Cloud & IT
    • 6.3.1.2.2 Telecom
    • 6.3.1.2.3 Media & Entertainment
    • 6.3.1.2.4 Government
    • 6.3.1.2.5 BFSI
    • 6.3.1.2.6 Manufacturing
    • 6.3.1.2.7 E-Commerce
    • 6.3.1.2.8 Other End User
    • 6.3.2 Non-Utilized

7. COMPETITVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Digital Realty Trust, Inc.
    • 7.1.2 DataBank Ltd
    • 7.1.3 CyrusOne LLC
    • 7.1.4 Switch, Inc.
    • 7.1.5 Sabey Data Center Properties LLC
  • *List Not Exhaustive
  • 7.2 Market share analysis (In terms of MW)
  • 7.3 List of Companies
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Austin Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The Austin Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), by Tier Type (Tier 1&2, Tier 3, Tier 4), by Absorption (Utilized (Colocation Type (Retail, Wholescale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)) , Non-Utilized).

The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.

DC Size Small
Medium
Large
Massive
Mega
Tier Type Tier 1 & 2
Tier 3
Tier 4
Absorption Utilized Colocation Type Retail
Wholesale
Hyperscale
End User Cloud & IT
Telecom
Media & Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End User
Non-Utilized
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Frequently Asked Questions

What is the current Austin Data Center Market size?

The Austin Data Center Market is projected to register a CAGR of 7% during the forecast period (2025-2031)

Who are the key players in Austin Data Center Market?

Digital Realty Trust, Inc., DataBank Ltd, CyrusOne LLC, Switch, Inc. and Sabey Data Center Properties LLC are the major companies operating in the Austin Data Center Market.

What years does this Austin Data Center Market cover?

The report covers the Austin Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Austin Data Center Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.

Austin Data Center Industry Report

Statistics for the 2025 Austin Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Austin Data Center analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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