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

The Northern California Data Center Market 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, Wholesale, 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.

Northern California Data Center Market Size

Northern California 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 8.50 %
Market Concentration High

Major Players

Northern California Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Northern California Data Center Market Analysis

Northern California had an installed capacity of around 992.87 MW in 2022, expected to increase to 1,947.54 MW by 2029, registering a CAGR of 8.5% during the forecast period. The COVID-19 pandemic positively affected the data center market. The pandemic led to the rapid acceptance of digitalization in the city. Since every industry suddenly became dependent on smart devices and the internet, the data center market grew during the pandemic.

  • Data centers in San Jose, Santa Clara, and San Francisco form the underpinning for Northern California, also known as the Silicon Valley wholesale, colocation, and cloud data center market. Despite being the biggest data center collection on the west coast of the U.S., Northern California's Data Center's vacancy rate is the lowermost in the entire country, showcasing the enormous demand for storage volume in Silicon Valley.
  • Northern California, or Silicon Valley, has over 160 data centers which exceed the capacity of nearly 625 megawatts of multi-tenant custom-built power. The data center market's substantial presence has been determined by factors that include the area's history as an internet interchange point (IXP) in the country and its already available network and cloud ecosystem.
  • Inadequate available volume was a persistent to be circumstance for the San Francisco Bay Area, causing an aggregate of 67 MW engaged during the year 2022. With an available space rate that lasts to drift within the range of three to four percent, growth has grown to keep up with the heavy demand in the area.
  • Data Centers in the area have all initiated new amenities that will considerably escalate their capacity in the current market. Additionally, On the cloud provider side, AWS and Microsoft have made several distinguished moves to enlarge their self-built volume in the market.
  • Similar to numerous recognized data center markets around the globe, Santa Clara endures inadequate availability of land along with unfulfilled demands concerning the accessibility of power in some submarkets. Despite increasing land and power charges, Silicon Valley remains a strong market as rental fees rise and occupants carry on to desire space in this crucial region.

Northern California Data Center Market Trends

Growing cloud applications, AI, and Big Data are expected to fuel the market growth

  • The growing adoption of cloud applications, artificial intelligence (AI), and big data drives the demand for data center construction. As more businesses and organizations shift their operations to the cloud, they require more significant and advanced data centers to support their needs.
  • Cloud applications have become increasingly popular in recent years, allowing businesses to access software and services over the Internet rather than installing and maintaining them on their hardware. This has led to a surge in demand for cloud-based data storage and processing capabilities, which large data centers typically provide.
  • AI and big data also require significant data storage and processing power. AI algorithms require vast amounts of data to be processed quickly, and big data analytics require massive amounts of storage and processing power to handle large datasets. This has increased demand for data centers with advanced computing capabilities, such as graphics processing units (GPUs) and artificial intelligence accelerators.
  • Furthermore, the increasing need for data privacy and security drives the demand for data centers. With the rise in cyber threats and data breaches, businesses and organizations are seeking secure and reliable data storage and processing solutions, which advanced data centers can only provide.
  • In summary, the growth of cloud applications, AI, and big data drives the demand for advanced data centers. As businesses and organizations increasingly rely on these technologies to support their operations, the need for data center construction is expected to continue to grow. This presents a significant opportunity for businesses and investors looking to enter the data center market.
Northern California Data Center Market: Total Inventory Growth, Primary Data Center Markets, Cities, United States, 2015-2022 (In %)

BFSI segment to grow at a noteworthy pace.

  • The BFSI (banking and financial services) segment has been one of the greatest influenced businesses by the digital revolution of industries allowing cost-effective earnings. The augmented penetration of cell phones and fast internet across the region has stimulated people to choose digital banking, which has also led toward incorporating powerful CRM and cloud tools to store and examine data, which is anticipated to augment market growth.
  • The digital ecosystem surrounding a bank is blowing up at a quick pace. With the incessant change in consumer demands, banks have been forced to customize their product offerings according to their needs. Secondly, as consumers embrace a mobile lifestyle and socialize on digital platforms, they expect banks to connect with them on the same platforms.
  • Banks are seeking to transform their product offerings, channels, and customer services to reflect the changing demands of consumers. Banks must integrate business processes with advanced analytical capabilities, continuously refining processes, services, and products in real-time. Thus, banks increasingly rely on the cloud's power to achieve their objectives and manage the current market challenges.
  • The hybrid cloud is expected to command significant demand due to the sensitive nature of data handled by the BFSI enterprises.
Northern California Data Center Market: Net Absorption of Data Centers, Cities, United States, 2021-22 (MW)

Northern California Data Center Industry Overview

The Northern California, 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, Rackspace Technology Inc., Cyxtera Technologies, and Vantage Data Center.

  • In April 2022, Nautilus Data Technologies launched its first floating data center. The floating data center is a 7MW Stockton1 data center located at the Port of Stockton, California; the data center is built on the deck of a flatboat on the San Joaquin River. It has a floor space of 10,000 sq ft. The company claims its water-cooling technology allows high-density computing at more than 100kW a rack and a PUE of 1.15. claims that the water-cooling technology in the floating data center allows for easy high-density computing, which can be determined at around 100kW a rack, along with a PUE of 1.15.
  • In January 2022, Black & Veatch Black & Veatch completed commissioning on the world's first commercial data center with zero water consumption in Stockton, located in Northern California-the data center chains resourcefulness with competence, setting a new level in data center invention. As corporations search for dependable, safe data centers to accomplish the digital revolution and handle the growing data growth, the company offers a maintainable substitute for their data center requirements.
  • AWS observed to increase its presence in US West Region with several moves in 2022. At the beginning of the year, AWS bought a seven-acre location in Santa Clara from IPI Partners to construct a supposed 60MW data center. It is expected to be its first self-built data center in the Bay Area. Moreover, the cloud provider announced its plans for two new 49MW facilities located in Gilroy, 40 miles South of Santa Clara. AWS is also said to have occupied 49MW of space in Hines' which is said to be its latest project in Hayward.

Northern California Data Center Market Leaders

  1. Digital Realty Trust, Inc.

  2. DataBank

  3. Rackspace Technology

  4. Cyxtera Technologies, Inc.

  5. Vantage Data Center

*Disclaimer: Major Players sorted in no particular order

Northern California Data Center Market Concentration

Northern California Data Center Market News

  • October 2022: Northern California, also known as Silicon Valley, ranked second for Data Center leasing activity in the first half of 2022. The region increased its capacity by 10% supply in H1 2022. However, it experienced record-low vacancy at 1.3%; silicon valley remains the tightest data center market in the U.S.
  • April 2023: RICloud entered the data center market in San Jose in 2021. Silicon Valley now has 17 similar facilities under construction in the region. This has increased the capacity of silicon valley by a whopping 688MW which is in the works.
  • January 2022: Prime Data Centers publicized its plans for the site on Comstock Street in Santa Clara, next to its current assets. The construction is anticipated to begin in the second half of 2023; the facility is expected to have a total of 9MW capacity at 74,000 sf.

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 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 Tier Type

      1. 6.2.1 Tier 1 & 2

      2. 6.2.2 Tier 3

      3. 6.2.3 Tier 4

    3. 6.3 Absorption

      1. 6.3.1 Utilized

        1. Colocation Type

          1. Retail

          2. Wholesale

          3. Hyperscale

        2. 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 DataBank

      3. 7.1.3 CoreSite

      4. 7.1.4 Vantage Data Center

      5. 7.1.5 Cyxtera Technologies, Inc.

      6. 7.1.6 NTT Ltd

      7. 7.1.7 Rackspace Technology

      8. 7.1.8 Hurricane Electric Internet Service

      9. 7.1.9 Stack Infrastructure

      10. 7.1.10 Cogent

      11. 7.1.11 Cologix

      12. 7.1.12 Lightedge

      13. 7.1.13 EdgeConneX, Inc.

      14. 7.1.14 Lumen Technologies

Northern California 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 Northern California Data Center Market 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, Wholesale, 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 Northern California Data Center Market is studied from 2017 - 2029.

The Northern California Data Center Market is growing at a CAGR of 8.5% over the next 5 years.

Digital Realty Trust, Inc., DataBank, Rackspace Technology, Cyxtera Technologies, Inc., Vantage Data Center are the major companies operating in Northern California Data Center Market.

Northern California Data Center Industry Report

Statistics for the 2023 Northern California Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Northern California 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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