Northwest Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2029)

The Northwest 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 value (MW) for all the above segments.

Northwest Data Center Market Size

Northwest Data Center Market Summary
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Study Period 2017-2029
Base Year For Estimation 2022
Forecast Data Period 2023 - 2029
Historical Data Period 2018 - 2021
CAGR 17.50 %
Market Concentration Low

Major Players

Northwest Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Northwest Data Center Market Analysis

The Northwest Data Center market is valued at 285.52MW in the current year and is expected to register a CAGR of 17.5% during the forecast period to 979.41MW by the next five years. A data center is a specific area inside a structure or a collection of designs, including computer systems and related equipment, such as networking and storage systems.

  • Portland's designation as a secondary market has gained traction due to solid demand for data centers serving the Pacific Northwest, affordable land, sustainable practices, and a variety of incentive programs. The Portland market has been one of the most sought-after in recent years, with commissioned power increasing by more than 700% between Q2 2019 and Q2 2022.
  • The market is poised for ongoing expansion thanks to strong tax incentives, solid network access, a growing IT workforce, and decreased power costs. Oregon is one of just five states without a sales tax, which also has the infrastructure needed to run a business that other tax-free jurisdictions might not have. For example, compared to other West Coast markets, the operational costs of a data center in Oregon are also much lower than the national average-a robust data center pipeline results from these qualities and the low amount of available inventory.
  • The region has serious data gravity issues, even though the concentration of data-driven global firms and high-tech startups creates several new business prospects across industries. This data explosion has significant ramifications. This is because enterprise management gets more challenging when more data is generated and processed throughout organizational locations.
  • Furthermore, with the outbreak of COVID-19, the country was significantly affected, which disrupted data center service providers in the region. Moreover, with the nationwide travel ban enforced in the country, many organizations adapted to work from home, which increased the data traffic significantly and put tremendous pressure on the data center, coping with the existing capacities to prevent downtime.

Northwest Data Center Market Trends

Rising Adoption of Hyperscale Data Centers

  • Portland/Hillsboro is becoming increasingly popular because of its low-cost electricity and tax breaks. In addition to the current inventory of 63.4 MW, the market has 18 MW under construction. With new construction accounting for 28% of its existing stock, it is one of the fastest-growing markets in the United States and Canada. Hillsboro has an appealing property tax abatement program and low-cost renewable energy utility programs, making it a popular destination for businesses looking to offset their data costs.
  • The power needs of data center users will increase, resulting in more extensive leasing agreements in 2023. Power supply issues will be the main barrier to new growth in several key markets, such as Northern Virginia, Hillsboro, and Silicon Valley. As a result, secondary markets with more affordable land, more abundant power, and advantageous tax incentives will see an increase in hyper scale demand.
  • Washington's accessible rural real estate also lends itself to massive data center footprints. SDC Quincy offers 528,000 square feet of purpose-built colocation space spread over three strategically constructed buildings, allowing users of nearly any size, including hyperscalers, to benefit from modular efficiency. There are options for built-to-suit powered shells, hybrid configurations, and wholesale turnkey colocation modules, all maintained by an award-winning critical environment management staff.
  • With over 1,200 technology enterprises in the metro, technology is essential to the city's economy. Because of the high number of technological enterprises, the Portland area has earned the moniker Silicon Forest. The site also houses facilities for software companies and internet startup companies, some of which are backed by local seed funding organizations and business incubators. Intel, the world's largest maker of computer components, employs about 15,000 people in the Portland area, with many locations near Hillsboro, west of downtown Portland.
Northwest Data Center Market: Absorption Rate in Selected Data Center Markets, United States in 2022 (in MW)

Digitilization will drive the Market

  • The government and defense sector is expected to generate significant demand for data center construction in the country over the forecast period. Government initiatives such as the Federal Cloud Computing Strategy - Cloud Smart and digitalizing public accessibility platforms are the greatest sources of demand for data centers nationwide.
  • The COVID-19 pandemic catalyzed to advance of the digitization of government, public and defense sectors in the region. Further, the ever-evolving citizen's demand for more efficient and digital government is expected to drive the demand for data centers over the forecast period. With the proliferation of digital transformation, the government and defense sector is witnessing exponential data growth. Meeting the growing need to store, process, and analyze ever-increasing volumes of data, is driving the need for data center construction in the federal government and defense of the country.
  • In the upcoming years, the demand for data center building is anticipated to be driven by several government programs designed to increase cloud use in federal government organizations. For instance, the US government unveiled The Cloud Smart Strategy in October 2018. The Cloud Smart plan offers further direction on workforce skills, procurement, and security to promote cloud adoption and deployment in the Federal Government. To modernize federal information technology (IT), increase citizen-facing services and accessibility, and protect cybersecurity, adopting the Federal Cloud Computing Strategy, often known as Cloud Smart, is essential.
  • The usage of smartphones and social media, the country's government's emphasis on the digital economy, and the rise in technology-driven businesses led to rapid data usage and storage growth in the IT sector. Data centers are becoming increasingly crucial parts of the IT infrastructure.
Northwest Data Center Market: Net Absorption vs. Under Construction, by Secondary Market, Hillsboro & Central Washington, 2022, in %

Northwest Data Center Industry Overview

The Northwest Data Center Market is fragmented in that key vendors utilize inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some of the players as Digital Realty Trust, Inc., Coresite, NTT Data, Cogent and Flexential, among others.

In January 2022, STACK Infrastructure completed its POR3 data center in Hillsboro, adding 180,000 sf and 24MW of power to its portfolio. The facility is 100% powered by renewable energy. STACK also purchased additional land in Hillsboro to total 50 acres.

In January 2023, Aligned Data Centers announced plans for a 108MW data center campus in Hillsboro across two phases of 72MW and 36MW, respectively. Bandwidth Infrastructure Group has added 20,000 miles of dark fiber to the Greater Portland area as data center connectivity demand grows.

Northwest Data Center Market Leaders

  1. Digital Realty Trust, Inc.

  2. CoreSite

  3. NTT Ltd

  4. Flexential

  5. Cogent

*Disclaimer: Major Players sorted in no particular order

Northwest Data Center Market Concentration

Northwest Data Center Market News

  • January 2023: In collaboration with Principal Asset Management, Crane Data Centers developed a 100MW data center complex in Forest Grove (a few miles from Hillsboro). The first phase is expected to deliver 50MW over 35 acres.
  • May 2022: Intel was building a USD 700 million research center in Hillsboro. The facility likely studied new technologies to increase data center operating efficiency. To achieve this, the 200,000-square-foot research lab was expected to primarily focus on reducing data centers' heating, cooling, and water needs. The facility was scheduled to open in late 2023.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Smartphone Users

    2. 4.2 Data Traffic per Smartphone

    3. 4.3 Mobile Data Speed

    4. 4.4 Broadband Data Speed

    5. 4.5 Regulatory Framework

    6. 4.6 Value Chain Analysis


    1. 5.1 IT Load Capacity

    2. 5.2 Raised Floor Space

    3. 5.3 Number of Racks


    1. 6.1 By DC Size

      1. 6.1.1 Small

      2. 6.1.2 Medium

      3. 6.1.3 Large

      4. 6.1.4 Massive

      5. 6.1.5 Mega

    2. 6.2 By Tier Type

      1. 6.2.1 Tier 1 & 2

      2. 6.2.2 Tier 3

      3. 6.2.3 Tier 4

    3. 6.3 By Absorption

      1. 6.3.1 Utilized

        1. By Colocation Type

          1. Retail

          2. Wholesale

          3. Hyperscale

        2. By End-User

          1. Cloud & IT

          2. Telecom

          3. Media & Entertainment

          4. Government

          5. BFSI

          6. Manufacturing

          7. E-Commerce

          8. Other End-User

      2. 6.3.2 Non-Utilized


    1. 7.1 Company Profiles

      1. 7.1.1 Digital Realty Trust, Inc.

      2. 7.1.2 CoreSite

      3. 7.1.3 NTT Ltd.

      4. 7.1.4 Flexential

      5. 7.1.5 H5 Data centers

      6. 7.1.6 Quality Technology Services

      7. 7.1.7 Involta

      8. 7.1.8 T5 Datacenters

      9. 7.1.9 Lunavi

      10. 7.1.10 Cogent

      11. 7.1.11 Digital Fortress

      12. 7.1.12 OneNeckITSolutionsLLC

      13. 7.1.13 EdgeConneX, Inc.

      14. 7.1.14 Fifteen Forty seven

      15. 7.1.15 Opus Interactive

    2. 7.2 Market share analysis (In terms of MW)

    3. 7.3 List of Companies

Northwest 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 Northwest 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 value (MW) for all the above segments.

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Frequently Asked Questions

The Northwest Data Center Market is studied from 2017 - 2029.

The Northwest Data Center Market is growing at a CAGR of 17.5% over the next 5 years.

Digital Realty Trust, Inc., CoreSite, NTT Ltd, Flexential, Cogent are the major companies operating in Northwest Data Center Market.

Northwest Data Center Industry Report

Statistics for the 2023 Northwest Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Northwest Data Center analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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