United States Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

The United States Data Center Market is segmented by Hotspot (Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

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United States Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

United States Data Center Market Size

United States Data Center Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Volume (2025) 20.39 Thousand MW
Market Volume (2030) 26.12 Thousand MW
CAGR 5.08 %
Market Concentration Low

Major Players

United States Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

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United States Data Center Market Analysis

The United States Data Center Market size is estimated at 20.39 thousand MW in 2025, and is expected to reach 26.12 thousand MW by 2030, growing at a CAGR of 5.08%. Further, the market is expected to generate colocation revenue of USD 24,036.4 Million in 2025 and is projected to reach USD 38,675.3 Million by 2030, growing at a CAGR of 9.98% during the forecast period (2025-2030).

The United States data center industry landscape is experiencing significant transformation, driven by evolving enterprise requirements and technological advancements. Tier 3 data centers have emerged as the preferred choice among businesses, particularly SMEs, which comprise 99.9% of active enterprises in the country. The market has witnessed substantial infrastructure development, with 399 Tier 3 certified facilities operational as of 2022, and an additional 73 data centers under construction following Tier 3 standards. This trend reflects the growing demand for facilities offering redundant and dual-powered servers, storage, network links, and other IT components, ensuring robust business continuity and operational reliability.


The data center industry is witnessing a notable shift towards higher tier classifications, with Tier 4 data centers gaining prominence among large enterprises due to their superior uptime guarantee of 99.995%. This contrasts significantly with Tier 1 facilities that offer 99.671% uptime (equivalent to 28.8 hours of downtime annually) and Tier 2 facilities providing 99.741% uptime (22 hours of downtime annually). The market's evolution is particularly evident in the increasing adoption of wholesale colocation services, even among smaller enterprises that traditionally opted for lower-tier facilities, indicating a growing emphasis on reliability and performance over cost considerations.


Infrastructure modernization and capacity expansion initiatives are reshaping the data center market landscape, with providers focusing on developing facilities that can accommodate growing data processing requirements. The surge in IP traffic, which reached an annual run rate of 955.7 exabytes in 2021, has prompted data center operators to enhance their infrastructure capabilities and adopt more efficient technologies. This has led to the emergence of new design standards and operational practices that prioritize scalability and performance optimization while maintaining high reliability standards.


The industry is experiencing a significant transformation in terms of sustainability and operational efficiency, with providers increasingly incorporating advanced cooling technologies and power management systems. Data center operators are implementing innovative solutions to optimize resource utilization and reduce environmental impact while maintaining the high performance standards required by modern enterprises. This focus on sustainability is complemented by the adoption of advanced monitoring and management systems that enable real-time optimization of facility operations, ensuring maximum efficiency while meeting the growing demands of digital transformation initiatives.

Segment Analysis: By Hotspot

Northern Virginia Segment in US Data Center Market

Northern Virginia represents the largest data center market in the United States, commanding approximately 14% market share in 2024. The region's dominance is driven by its strategic advantages, including reliable energy infrastructure through Dominion Virginia Power, which has connected close to 70 data centers with over 2.6 gigawatts of capacity. The market benefits significantly from being the first state to allow colocation data center tenants to receive sales tax exemption benefits. Major providers such as Vantage Data Centers, Quality Technology Services, and Stack Infrastructure are planning to deploy seven mega data centers with a cumulative IT load capacity of 935 MW by 2029, further solidifying the region's position. The area's robust fiber infrastructure, with Virginia Beach serving as the landing point for four new transoceanic fiber connection cables, enhances its appeal to data center operators.

Market Analysis of United States Data Center Market: Chart for By Hotspot

Phoenix Segment in US Data Center Market

Phoenix is emerging as the fastest-growing major data center market in the United States, with an expected growth rate of approximately 19% from 2024 to 2029. The market's rapid expansion is driven by several key factors, including lower power costs compared to West Coast markets, abundant and affordable real estate, and attractive tax incentives. The greater Phoenix region ranks in the top five for regional fiber-optic deployments in the United States, with more than 156,000 miles of fiber-optic network capacity. Companies like Vantage Data Centers, Stack Phoenix, and Stack Infrastructure have planned to launch four data centers with a cumulative IT load capacity of 648 MW, demonstrating strong investor confidence in the region. The market's desert terrain and flat topography provide abundant developable land, making it ideal for building large-scale data centers.

Remaining Segments in US Data Center Market Hotspots

Other significant data center hotspots include Northern California, Chicago, Dallas, Atlanta, New Jersey, New York, Boston, Houston, Los Angeles, Northwest, and Salt Lake City. Northern California maintains its position as a crucial market despite high energy costs, particularly in Silicon Valley, where Silicon Valley Power offers 20-40% lower power costs than surrounding municipalities. Chicago stands out with its deregulated electricity market and competitive pricing for wholesale data center and hyperscale transactions. Dallas benefits from being the largest hub for compute, storage, and communications exchange in the south-central United States. Atlanta has emerged as a significant market due to its relatively inexpensive power, strong fiber access, and excellent infrastructure. These markets collectively contribute to the diverse and robust data center landscape in the United States, each offering unique advantages in terms of connectivity, power costs, and business environments.

Segment Analysis: By Data Center Size

Mega Data Center Segment in US Data Center Market

The mega data center segment dominates the United States data center market, holding approximately 38% market share in 2024, with an IT load capacity of over 5,600 MW. This segment consists of 62 data center facilities across the country, with major concentrations in Northern Virginia, Northern California, and Phoenix regions. The segment's prominence is driven by hyperscale cloud providers and social media companies that require extensive computing capabilities. Quality Technology Services is planning to construct a mega data center with 147 MW capacity, while CyrusOne is developing a facility with 67.5 MW capacity, demonstrating the continued expansion in this segment. The segment is also experiencing the fastest growth trajectory, expected to grow at approximately 14% annually from 2024 to 2029, driven by increasing demand for cloud services, 5G infrastructure, and emerging technologies like autonomous vehicles and blockchain.

Remaining Segments in Data Center Size Market

The massive data center segment represents the second-largest category in the market, followed by large data centers which cater to diverse enterprise needs. The massive segment comprises 176 facilities primarily concentrated in Northern Virginia, Dallas, and Northern California, offering substantial computing power while maintaining operational flexibility. Large data centers, with 297 facilities, serve as crucial infrastructure hubs for organizations requiring significant but not hyperscale capabilities. The medium segment primarily serves regional markets and specialized industry needs, while small data centers, though fewer in number, play a vital role in edge computing and local data processing requirements. These smaller facilities are particularly prevalent in emerging tech hubs like Las Vegas, which hosts numerous startups and technology companies requiring localized data processing capabilities.

Segment Analysis: By Tier Type

Tier 4 Segment in US Data Center Market

Tier 4 data centers have emerged as the dominant force in the United States data center market, holding approximately 49% market share in 2024. These facilities are primarily preferred by large enterprises due to their superior uptime guarantee of 99.995% per year, translating to less than 0.5 hours of downtime annually. Northern Virginia hosts the maximum number of tier 4 data centers in the country, accounting for about 6% of the total market share. The segment is experiencing robust growth at nearly 13% through 2029, driven by increasing demand from hyperscale colocation services and major end users in cloud and telecom sectors. Major providers like Switch are leading the tier 4 segment with significant deployments across Nevada, Michigan, Georgia, and Texas, offering a cumulative IT load capacity of 1,590 MW. The growth is further supported by the increasing trend toward advanced computing solutions and the rising need for highly redundant and efficient facilities to handle the expanding IP traffic volumes across the United States.

Remaining Segments in Data Center Tier Types

The remaining tier segments in the US data center market consist of tier 3 data center requirements and tier 1 data center facilities, each serving distinct market needs. Tier 3 data centers continue to maintain a strong presence in the market, particularly appealing to small and medium enterprises (SMEs) due to their balanced combination of redundancy capabilities and cost-effectiveness. These facilities feature redundant and dual-powered servers, storage, network links, and other IT components, making them suitable for businesses requiring reliable infrastructure without the premium costs of Tier 4 facilities. On the other hand, Tier 1 & 2 data centers represent the basic tier levels, primarily utilized by small businesses seeking cost-effective options for their data storage needs. However, these lower-tier facilities are experiencing minimal growth as even SMEs are increasingly gravitating toward higher tier certifications, particularly Tier 3, driven by the growing importance of uptime reliability and redundancy in modern business operations.

Segment Analysis: By Absorption

United States Data Center Industry Overview

Top Companies in United States Data Center Market

The data center market share in the United States is characterized by continuous innovation and strategic expansion initiatives from major players. Data center companies are focusing on developing sustainable and energy-efficient facilities, with many providers implementing renewable energy solutions and advanced cooling technologies in their operations. Strategic partnerships with cloud service providers and network operators have become increasingly common to enhance service offerings and market reach. Operational agility is demonstrated through rapid deployment capabilities and modular data center designs that allow for quick scaling of capacity. Market leaders are actively expanding their geographic footprint through both greenfield developments and acquisitions, particularly in emerging tech hubs and secondary markets. Innovation trends include the adoption of advanced security measures, implementation of automation and AI-driven operations, and development of edge computing capabilities to meet evolving customer demands.

Market Dominated by Established Infrastructure Giants

The United States data center market exhibits a relatively consolidated structure dominated by large infrastructure providers with significant national presence. These established players leverage their extensive network of facilities, strong financial capabilities, and long-standing relationships with enterprise customers to maintain their market positions. The market shows a mix of pure-play data center companies and diversified real estate investment trusts (REITs) that have specialized in digital infrastructure. Market consolidation continues through strategic acquisitions, with larger players acquiring regional operators to expand their footprint and capabilities. Joint ventures and partnerships between operators and investment firms have become increasingly common, enabling rapid expansion and technological advancement.


The competitive landscape is characterized by high barriers to entry due to substantial capital requirements and the need for specialized expertise in data center operations. Major players are increasingly focusing on hyperscale facilities to cater to growing cloud service provider demands, while maintaining their retail colocation offerings for enterprise customers. The market has seen significant private equity interest, leading to several take-private transactions and strategic investments that have reshaped the competitive landscape. Regional players maintain their relevance by focusing on specific geographic markets or specialized service offerings, while global operators leverage their international presence to serve multinational clients. The data center company market share is influenced by these dynamics, with the biggest data center companies in the US continuing to dominate.

Innovation and Sustainability Drive Future Success

Success in the United States data center market increasingly depends on operators' ability to differentiate through technological innovation and sustainable operations. Market leaders are investing heavily in renewable energy solutions, advanced cooling technologies, and energy-efficient designs to meet growing environmental concerns and regulatory requirements. The ability to offer comprehensive solutions, including hybrid and multi-cloud connectivity options, edge computing capabilities, and advanced security features, has become crucial for maintaining competitive advantage. Operators are also focusing on developing specialized offerings for high-growth sectors such as artificial intelligence, machine learning, and IoT applications to capture emerging opportunities.


For new entrants and smaller players, success lies in identifying and serving underserved markets or specialized customer segments. This includes focusing on secondary markets with growing tech presence, developing industry-specific solutions, or offering innovative service models. Building strong relationships with local utilities and government agencies has become crucial for securing power resources and navigating regulatory requirements. The increasing focus on data sovereignty and security requirements presents opportunities for providers to differentiate through compliance expertise and enhanced security offerings. Future success will also depend on operators' ability to maintain flexibility in their infrastructure to accommodate rapidly evolving technology requirements while ensuring cost-effective operations. The data center market competitors will need to adapt to these trends to sustain growth.

United States Data Center Market Leaders

  1. CoreSite (America Tower Corporation)

  2. Databank Holdings Ltd

  3. Digital Realty Trust, Inc.

  4. Equinix, Inc.

  5. NTT Ltd.

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

  • February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.
  • December 2022: DigitalBridge Group Inc. and IFM Investors announced the completion of their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch Inc. for USD 11 billion, including the repayment of outstanding debt.
  • October 2022: Three additional data centers in Charlotte, Nashville, and Louisville were made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220 MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well-aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.

United States Data Center Market
United States Data Center Market
United States Data Center Market
United States Data Center Market

United States Data Center Market Report - Table of Contents

1. EXECUTIVE SUMMARY & KEY FINDINGS

2. REPORT OFFERS

3. INTRODUCTION

  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study​
  • 3.3 Research Methodology

4. MARKET OUTLOOK

  • 4.1 It Load Capacity
  • 4.2 Raised Floor Space
  • 4.3 Colocation Revenue
  • 4.4 Installed Racks
  • 4.5 Rack Space Utilization
  • 4.6 Submarine Cable

5. Key Industry Trends

  • 5.1 Smartphone Users
  • 5.2 Data Traffic Per Smartphone
  • 5.3 Mobile Data Speed
  • 5.4 Broadband Data Speed
  • 5.5 Fiber Connectivity Network
  • 5.6 Regulatory Framework
    • 5.6.1 United States
  • 5.7 Value Chain & Distribution Channel Analysis

6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)

  • 6.1 Hotspot
    • 6.1.1 Atlanta
    • 6.1.2 Austin
    • 6.1.3 Boston
    • 6.1.4 Chicago
    • 6.1.5 Dallas
    • 6.1.6 Houston
    • 6.1.7 Los Angeles
    • 6.1.8 New Jersey
    • 6.1.9 New York
    • 6.1.10 Northern California
    • 6.1.11 Northern Virginia
    • 6.1.12 Northwest
    • 6.1.13 Phoenix
    • 6.1.14 Salt Lake City
    • 6.1.15 Rest of United States
  • 6.2 Data Center Size
    • 6.2.1 Large
    • 6.2.2 Massive
    • 6.2.3 Medium
    • 6.2.4 Mega
    • 6.2.5 Small
  • 6.3 Tier Type
    • 6.3.1 Tier 1 and 2
    • 6.3.2 Tier 3
    • 6.3.3 Tier 4
  • 6.4 Absorption
    • 6.4.1 Non-Utilized
    • 6.4.2 Utilized
    • 6.4.2.1 By Colocation Type
    • 6.4.2.1.1 Hyperscale
    • 6.4.2.1.2 Retail
    • 6.4.2.1.3 Wholesale
    • 6.4.2.2 By End User
    • 6.4.2.2.1 BFSI
    • 6.4.2.2.2 Cloud
    • 6.4.2.2.3 E-Commerce
    • 6.4.2.2.4 Government
    • 6.4.2.2.5 Manufacturing
    • 6.4.2.2.6 Media & Entertainment
    • 6.4.2.2.7 Telecom
    • 6.4.2.2.8 Other End User

7. COMPETITIVE LANDSCAPE

  • 7.1 Market Share Analysis
  • 7.2 Company Landscape
  • 7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
    • 7.3.1 CoreSite (America Tower Corporation)
    • 7.3.2 CyrusOne Inc.
    • 7.3.3 Cyxtera Technologies
    • 7.3.4 Databank Holdings Ltd
    • 7.3.5 Digital Realty Trust, Inc.
    • 7.3.6 Equinix, Inc.
    • 7.3.7 Flexential Corp.
    • 7.3.8 H5 Data Centers LLC
    • 7.3.9 NTT Ltd.
    • 7.3.10 Quality Technology Services
    • 7.3.11 Switch
    • 7.3.12 Vantage Data Centers, LLC
  • 7.4 LIST OF COMPANIES STUDIED

8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS

9. APPENDIX

  • 9.1 Global Overview
    • 9.1.1 Overview
    • 9.1.2 Porter’s Five Forces Framework
    • 9.1.3 Global Value Chain Analysis
    • 9.1.4 Global Market Size and DROs
  • 9.2 Sources & References
  • 9.3 List of Tables & Figures
  • 9.4 Primary Insights
  • 9.5 Data Pack
  • 9.6 Glossary of Terms
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List of Tables & Figures

  1. Figure 1:  
  2. VOLUME OF IT LOAD CAPACITY, MW, UNITED STATES, 2018 - 2030
  1. Figure 2:  
  2. VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), UNITED STATES, 2018 - 2030
  1. Figure 3:  
  2. VALUE OF COLOCATION REVENUE, USD MILLION, UNITED STATES, 2018 - 2030
  1. Figure 4:  
  2. VOLUME OF INSTALLED RACKS, NUMBER, UNITED STATES, 2018 - 2030
  1. Figure 5:  
  2. RACK SPACE UTILIZATION, %, UNITED STATES, 2018 - 2030
  1. Figure 6:  
  2. COUNT OF SMARTPHONE USERS, IN MILLION, UNITED STATES, 2018 - 2030
  1. Figure 7:  
  2. DATA TRAFFIC PER SMARTPHONE, GB, UNITED STATES, 2018 - 2030
  1. Figure 8:  
  2. AVERAGE MOBILE DATA SPEED, MBPS, UNITED STATES, 2018 - 2030
  1. Figure 9:  
  2. AVERAGE BROADBAND SPEED, MBPS, UNITED STATES, 2018 - 2030
  1. Figure 10:  
  2. LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, UNITED STATES, 2018 - 2030
  1. Figure 11:  
  2. VOLUME OF IT LOAD CAPACITY, MW, UNITED STATES, 2018 - 2030
  1. Figure 12:  
  2. VOLUME OF HOTSPOT, MW, UNITED STATES, 2018 - 2030
  1. Figure 13:  
  2. VOLUME SHARE OF HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 14:  
  2. VOLUME SIZE OF ATLANTA, MW, UNITED STATES, 2018 - 2030
  1. Figure 15:  
  2. VOLUME SHARE OF ATLANTA, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 16:  
  2. VOLUME SIZE OF AUSTIN, MW, UNITED STATES, 2018 - 2030
  1. Figure 17:  
  2. VOLUME SHARE OF AUSTIN, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 18:  
  2. VOLUME SIZE OF BOSTON, MW, UNITED STATES, 2018 - 2030
  1. Figure 19:  
  2. VOLUME SHARE OF BOSTON, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 20:  
  2. VOLUME SIZE OF CHICAGO, MW, UNITED STATES, 2018 - 2030
  1. Figure 21:  
  2. VOLUME SHARE OF CHICAGO, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 22:  
  2. VOLUME SIZE OF DALLAS, MW, UNITED STATES, 2018 - 2030
  1. Figure 23:  
  2. VOLUME SHARE OF DALLAS, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 24:  
  2. VOLUME SIZE OF HOUSTON, MW, UNITED STATES, 2018 - 2030
  1. Figure 25:  
  2. VOLUME SHARE OF HOUSTON, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 26:  
  2. VOLUME SIZE OF LOS ANGELES, MW, UNITED STATES, 2018 - 2030
  1. Figure 27:  
  2. VOLUME SHARE OF LOS ANGELES, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 28:  
  2. VOLUME SIZE OF NEW JERSEY, MW, UNITED STATES, 2018 - 2030
  1. Figure 29:  
  2. VOLUME SHARE OF NEW JERSEY, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 30:  
  2. VOLUME SIZE OF NEW YORK, MW, UNITED STATES, 2018 - 2030
  1. Figure 31:  
  2. VOLUME SHARE OF NEW YORK, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 32:  
  2. VOLUME SIZE OF NORTHERN CALIFORNIA, MW, UNITED STATES, 2018 - 2030
  1. Figure 33:  
  2. VOLUME SHARE OF NORTHERN CALIFORNIA, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 34:  
  2. VOLUME SIZE OF NORTHERN VIRGINIA, MW, UNITED STATES, 2018 - 2030
  1. Figure 35:  
  2. VOLUME SHARE OF NORTHERN VIRGINIA, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 36:  
  2. VOLUME SIZE OF NORTHWEST, MW, UNITED STATES, 2018 - 2030
  1. Figure 37:  
  2. VOLUME SHARE OF NORTHWEST, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 38:  
  2. VOLUME SIZE OF PHOENIX, MW, UNITED STATES, 2018 - 2030
  1. Figure 39:  
  2. VOLUME SHARE OF PHOENIX, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 40:  
  2. VOLUME SIZE OF SALT LAKE CITY, MW, UNITED STATES, 2018 - 2030
  1. Figure 41:  
  2. VOLUME SHARE OF SALT LAKE CITY, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 42:  
  2. VOLUME SIZE OF REST OF UNITED STATES, MW, UNITED STATES, 2018 - 2030
  1. Figure 43:  
  2. VOLUME SHARE OF REST OF UNITED STATES, MW, HOTSPOT, %, UNITED STATES, 2018 - 2030
  1. Figure 44:  
  2. VOLUME OF DATA CENTER SIZE, MW, UNITED STATES, 2018 - 2030
  1. Figure 45:  
  2. VOLUME SHARE OF DATA CENTER SIZE, %, UNITED STATES, 2018 - 2030
  1. Figure 46:  
  2. VOLUME SIZE OF LARGE, MW, UNITED STATES, 2018 - 2030
  1. Figure 47:  
  2. VOLUME SIZE OF MASSIVE, MW, UNITED STATES, 2018 - 2030
  1. Figure 48:  
  2. VOLUME SIZE OF MEDIUM, MW, UNITED STATES, 2018 - 2030
  1. Figure 49:  
  2. VOLUME SIZE OF MEGA, MW, UNITED STATES, 2018 - 2030
  1. Figure 50:  
  2. VOLUME SIZE OF SMALL, MW, UNITED STATES, 2018 - 2030
  1. Figure 51:  
  2. VOLUME OF TIER TYPE, MW, UNITED STATES, 2018 - 2030
  1. Figure 52:  
  2. VOLUME SHARE OF TIER TYPE, %, UNITED STATES, 2018 - 2030
  1. Figure 53:  
  2. VOLUME SIZE OF TIER 1 AND 2, MW, UNITED STATES, 2018 - 2030
  1. Figure 54:  
  2. VOLUME SIZE OF TIER 3, MW, UNITED STATES, 2018 - 2030
  1. Figure 55:  
  2. VOLUME SIZE OF TIER 4, MW, UNITED STATES, 2018 - 2030
  1. Figure 56:  
  2. VOLUME OF ABSORPTION, MW, UNITED STATES, 2018 - 2030
  1. Figure 57:  
  2. VOLUME SHARE OF ABSORPTION, %, UNITED STATES, 2018 - 2030
  1. Figure 58:  
  2. VOLUME SIZE OF NON-UTILIZED, MW, UNITED STATES, 2018 - 2030
  1. Figure 59:  
  2. VOLUME OF COLOCATION TYPE, MW, UNITED STATES, 2018 - 2030
  1. Figure 60:  
  2. VOLUME SHARE OF COLOCATION TYPE, %, UNITED STATES, 2018 - 2030
  1. Figure 61:  
  2. VOLUME SIZE OF HYPERSCALE, MW, UNITED STATES, 2018 - 2030
  1. Figure 62:  
  2. VOLUME SIZE OF RETAIL, MW, UNITED STATES, 2018 - 2030
  1. Figure 63:  
  2. VOLUME SIZE OF WHOLESALE, MW, UNITED STATES, 2018 - 2030
  1. Figure 64:  
  2. VOLUME OF END USER, MW, UNITED STATES, 2018 - 2030
  1. Figure 65:  
  2. VOLUME SHARE OF END USER, %, UNITED STATES, 2018 - 2030
  1. Figure 66:  
  2. VOLUME SIZE OF BFSI, MW, UNITED STATES, 2018 - 2030
  1. Figure 67:  
  2. VOLUME SIZE OF CLOUD, MW, UNITED STATES, 2018 - 2030
  1. Figure 68:  
  2. VOLUME SIZE OF E-COMMERCE, MW, UNITED STATES, 2018 - 2030
  1. Figure 69:  
  2. VOLUME SIZE OF GOVERNMENT, MW, UNITED STATES, 2018 - 2030
  1. Figure 70:  
  2. VOLUME SIZE OF MANUFACTURING, MW, UNITED STATES, 2018 - 2030
  1. Figure 71:  
  2. VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, UNITED STATES, 2018 - 2030
  1. Figure 72:  
  2. VOLUME SIZE OF TELECOM, MW, UNITED STATES, 2018 - 2030
  1. Figure 73:  
  2. VOLUME SIZE OF OTHER END USER, MW, UNITED STATES, 2018 - 2030
  1. Figure 74:  
  2. VOLUME SHARE OF MAJOR PLAYERS, %, UNITED STATES

United States Data Center Industry Segmentation

Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
Hotspot Atlanta
Austin
Boston
Chicago
Dallas
Houston
Los Angeles
New Jersey
New York
Northern California
Northern Virginia
Northwest
Phoenix
Salt Lake City
Rest of United States
Data Center Size Large
Massive
Medium
Mega
Small
Tier Type Tier 1 and 2
Tier 3
Tier 4
Absorption Non-Utilized
Utilized By Colocation Type Hyperscale
Retail
Wholesale
By End User BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword Definition
Rack Unit Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches.
Rack Density It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning.
IT Load Capacity The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW).
Absorption Rate It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity.
Raised Floor Space It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter.
Computer Room Air Conditioner (CRAC) It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center.
Aisle It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle.
Cold Aisle It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature.
Hot Aisle It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC.
Critical Load It includes the servers and other computer equipment whose uptime is critical for data center operation.
Power Usage Effectiveness (PUE) It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient.
Redundancy It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected.
Uninterruptible Power Supply (UPS) It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only.
Generators Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption.
N It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure.
N+1 Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required.
2N It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center.
In-Row Cooling It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature.
Tier 1 Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours.
Tier 2 A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours.
Tier 3 A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours.
Tier 4 It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes.
Small Data Center Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center.
Medium Data Center Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center.
Large Data Center Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center.
Massive Data Center Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center.
Mega Data Center Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center.
Retail Colocation It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs).
Wholesale Colocation It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises.
Hyperscale Colocation It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+).
Mobile Data Speed It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest.
Fiber Connectivity Network It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km).
Data Traffic per Smartphone It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB).
Broadband Data Speed It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable.
Submarine Cable A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another.
Carbon Footprint It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities.
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  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
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United States Data Center Market Research FAQs

What is the current United States Data Center Market size?

The United States Data Center Market is projected to register a CAGR of 5.08% during the forecast period (2025-2030).

Who are the key players in United States Data Center Market?

CoreSite (America Tower Corporation), Databank Holdings Ltd, Digital Realty Trust, Inc., Equinix, Inc. and NTT Ltd. are the major companies operating in the United States Data Center Market.

Which segment has the biggest share in the United States Data Center Market?

In the United States Data Center Market, the Tier 3 segment accounts for the largest share by tier type.

Which is the fastest growing segment in the United States Data Center Market?

In 2025, the Tier 4 segment accounts for the fastest growing by tier type in the United States Data Center Market.

What years does this United States Data Center Market cover, and what was the market size in 2025?

In 2025, the United States Data Center Market size was estimated at 20.39 thousand. The report covers the United States Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

United States Data Center Market Research

Mordor Intelligence provides a comprehensive analysis of the United States data center market. We leverage our extensive expertise in data center industry research and consulting. Our detailed report examines data center trends across major metropolitan areas, including emerging tier 2 cities USA and strategic locations. The analysis covers data center capacity metrics, data center infrastructure market dynamics, and wholesale data center operations. This provides stakeholders with crucial insights into the data center demand forecast and industry developments.

The report offers valuable intelligence for stakeholders seeking to understand data center growth projections and market forecasts. It includes a detailed examination of data centers by state and the distribution of data center capacity MW. Our research encompasses large data centers across the country, analyzing data center load growth patterns and future data center trends. The report, available as an easy-to-download PDF, includes comprehensive data center statistics, CAGR projections, and a detailed analysis of data center industry trends. This enables informed decision-making for investors, operators, and enterprise customers in the wholesale data center space.