Los Angeles Data Center Market Size
| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 173.14 megawatt |
| Market Volume (2030) | 215.76 megawatt |
| CAGR (2025 - 2030) | 4.50% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Los Angeles Data Center Market Analysis
The Los Angeles Data Center Market size is estimated at 173.14 megawatt in 2025, and is expected to reach 215.76 megawatt by 2030, at a CAGR of 4.5% during the forecast period (2025-2030).
A data center is a specific area inside a structure or a collection of designs that includes computer systems and related equipment, such as networking and storage systems.
- Los Angeles, home to Hollywood, the world's most famous entertainment industry center, has thriving media and entertainment hubs that contribute significantly to the density of, and ubiquitous connectivity to, the city's data centers. The high pace of movie production each year has been demonstrated to increase data center leasing activity rates in and around the area.
- Los Angeles is one of the most significant cities in the United States, with a population of about four million. Over 82% of this population has broadband internet access, contributing to the vast connection Los Angeles and its data centers enjoy. Los Angeles has a GDP of over US$940 billion, and its data center business is growing to a significant contribution from the digital economy.
- As the rise of AI takes the stage, hyperscale, and edge fuel data center demand. The broad adoption of cloud computing and artificial intelligence (AI) drives exponential growth for the data center business.
- Real estate prices in Los Angeles have surged due to issues such as a scarcity of adequate land, increasing demand from other businesses, and zoning constraints. As a result, land and construction costs have risen significantly, making it harder for data center operators to obtain a satisfactory return on investment.
- The epidemic also increased network and internet traffic due to the work-from-home lifestyle, more internet-based activities, and social media usage. While timelines and schedules are shrinking, data center projects are growing.
Los Angeles Data Center Market Trends
Growing Cloud Applications, AI, and Big Data
- The growing adoption of cloud applications, artificial intelligence (AI), and big data is driving the demand for the data center market. As more businesses and organizations shift their operations to the cloud, they require larger and more advanced data centers to support their needs.
- Cloud applications have become popular in recent years because they enable businesses to access software and services via the Internet rather than installing and maintaining them on their hardware. This has increased demand for cloud-based data storage and processing capabilities, which big data centers usually provide.
- For instance, in December 2022, a new Oracle Cloud Infrastructure (OCI) region officially began operations in Chicago, according to Oracle. The new area, which is Oracle's fourth in the United States and 41st overall, is a public cloud region. The business also runs two general US Government regions, three Department of Defense-specific US Government regions, several US National Security regions, a TikTok plant in Texas, and regions in Ashburn, Virginia, Phoenix, Arizona, and San Jose, California.
- Additionally, the growing data privacy and security requirement is fuelling demand for data centers. Because of the increase in cyber risks and data breaches, businesses and organizations are looking for secure and dependable data storage and processing solutions, which advanced data centers can only offer. The need for data centers will likely increase as businesses and organizations increasingly rely on these technologies to support their operations. This is a significant potential for companies and investors interested in entering the data center market.
High Adoption Of Hyperscale Data Center
- The rising adoption of hyperscale data centers is a significant driver of the data center construction market. Hyperscale data centers are large-scale facilities that are designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
- These data centers are typically owned and operated by cloud service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as large enterprise companies like Facebook and Apple. Hyperscale data centers are characterized by their massive scale, with some facilities spanning over a million square feet and containing tens of thousands of servers.
- As the demand for digital IT infrastructure grows, hyperscalers and edge data centers are expected to be the fastest-growing segments of the data center market. Indeed, the hyperscale market is predicted to increase by 20% between 2021 and 2026 as more major IT businesses seek to address the rising demand for data processing and storage. With 314 new hyperscale sites under construction globally now, the number is likely to exceed 1,000 by the end of 2024, up from roughly 500 locations just five years ago. According to Uptime Institute, the United States has 53% of hyperscale capacity.
- With hyperscale demand at an all-time high, we anticipate an increase in partial-interest exchanges and forward sales of new builds. Furthermore, rising interest rates will likely boost sale-leaseback transactions for businesses looking to raise capital.
- As a result of these benefits, the adoption of hyperscale data centers is expected to continue to grow in the coming years, driving the demand for data center construction. This presents a significant opportunity for businesses and investors looking to enter the data center market, particularly in regions with a high demand for cloud-based services and applications.
Los Angeles Data Center Industry Overview
The Los Angeles Data Center Market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include Digital Realty Trust, Inc., DataBank, Equinix Inc., CoreSitea, and Cogent.
April 2024: CenterSquare Investment Management (CenterSquare) is investing in Aligned Data Centers (Aligned). This investment is through a partnership with Macquarie Asset Management, which holds a majority stake in Aligned Data Centers. CenterSquare, based in suburban Philadelphia, manages about USD 13 billion in assets as of December 2023, with offices in New York, London, Los Angeles, and Singapore.
November 2023: Lumen Technologies introduced its first Network-as-a-Service (NaaS) capability, expanding the service from 23 data centers to 136 across North America. Lumen has extended its NaaS reach to Digital Realty and Equinix Fabric customers in several key markets, including Ashburn, Va., Atlanta, Chicago, Dallas, and Los Angeles.
Los Angeles Data Center Market Leaders
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Digital Realty Trust, Inc.
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DataBank
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Equinix Inc.
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CoreSite
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Cogent
- *Disclaimer: Major Players sorted in no particular order
Los Angeles Data Center Market News
- In September 2023, Equinix revealed that its data centers in Los Angeles and Sydney, Australia, will connect to Southern Cross Cables' latest NEXT submarine cable system. This enhancement strengthens the bandwidth link between Australia, New Zealand, and the United States.
- In May 2024, Prime Data Centers, a wholesale data center provider, announced that Madrid will be the site of its new 26,000 square-meter data center. Prime also plans to open another data center in Los Angeles this October.
Los Angeles 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 Los Angeles Data Center Market is segmented by 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)), and Non-Utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
| By DC Size | Small | |||
| Medium | ||||
| Large | ||||
| Massive | ||||
| Mega | ||||
| By Tier Type | Tier 1 & 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By Absorption | Utilized | By Colocation Type | Retail | |
| Wholesale | ||||
| Hyperscale | ||||
| By End User | Cloud & IT | |||
| Telecom | ||||
| Media & Entertainment | ||||
| Government | ||||
| BFSI | ||||
| Manufacturing | ||||
| E-Commerce | ||||
| Other End User | ||||
| Non-Utilized | ||||
| Small |
| Medium |
| Large |
| Massive |
| Mega |
| Tier 1 & 2 |
| Tier 3 |
| Tier 4 |
| Utilized | By Colocation Type | Retail | |
| Wholesale | |||
| Hyperscale | |||
| By End User | Cloud & IT | ||
| Telecom | |||
| Media & Entertainment | |||
| Government | |||
| BFSI | |||
| Manufacturing | |||
| E-Commerce | |||
| Other End User | |||
| Non-Utilized | |||
Los Angeles Data Center Market Research Faqs
How big is the Los Angeles Data Center Market?
The Los Angeles Data Center Market size is expected to reach 173.14 megawatt in 2025 and grow at a CAGR of 4.5% to reach 215.76 megawatt by 2030.
What is the current Los Angeles Data Center Market size?
In 2025, the Los Angeles Data Center Market size is expected to reach 173.14 megawatt.
Who are the key players in Los Angeles Data Center Market?
Digital Realty Trust, Inc., DataBank, Equinix Inc., CoreSite and Cogent are the major companies operating in the Los Angeles Data Center Market.
What years does this Los Angeles Data Center Market cover, and what was the market size in 2024?
In 2024, the Los Angeles Data Center Market size was estimated at 165.35 megawatt. The report covers the Los Angeles Data Center Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Los Angeles Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Los Angeles Data Center Industry Report
Statistics for the 2025 Los Angeles Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Los Angeles Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
