Market Size of united states data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 14.81 Thousand MW |
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Market Volume (2029) | 24.11 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.24 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United States Data Center Market Analysis
The United States Data Center Market size is estimated at 14.81 thousand MW in 2024, and is expected to reach 24.11 thousand MW by 2029, growing at a CAGR of 10.24% during the forecast period (2024-2029).
USD 37,501.03 Million
Market Size in 2024
USD 95,232 Million
Market Size in 2029
13.2%
CAGR (2017-2023)
20.5%
CAGR (2024-2029)
IT Load Capacity
14,810.44 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 24,108 MW by 2029. 5G would heavily contribute to data generation through increased data points, generating demand for more data centers.
Total Raised Floor Space
Sq. Ft. 44.24 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 80.7 million sq. ft by 2029. The major providers constructing the DC facilities are DataBank, Equinix Inc., and H5 Data Centers. It would increase raise floor space.
Installed Racks
2,212,050
Volume, Installed Racks, 2024
The total number of installed racks is expected to reach over 4 million units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029. The demand is being driven by larger deployments for hyperscale occupiers.
# of DC Operators & DC Facilities
79 and 833
Volume, DC Facilities, 2024
Evolving technology businesses have led data center growth. Growth in 5G and extensive fiber connectivity supporting technologies like FWA, smartphone data consumption increased by more than 10 GB from 2018 to 2023.
Leading Market Player
12.3%
Market Share, Switch, 2023
In 2023, Switch held a market share of 12.3% with an operational capacity of 1590 MW. Switch’s focus on sustainability and efficient technologies make their exascale ecosystems most sustainable and cost-effective colocation environment.
Tier 3 data center accounted for majority share in terms of volume in 2023
- Tier 3 data centers are the most preferred in the country. They operated at an IT load capacity of 5,319.6 MW in 2022. Tier 3 data centers have redundant and dual-powered servers, storage, network links, and other IT components. As of 2022, the country had 399 tier 3 data centers. Around 73 data centers are under construction with Tier 3 standards.
- SMEs generally prefer a Tier 3-rated facility. SMEs are a vital component of the US economy, as they comprise 99.9% of active enterprises. End users such as BFSI and telecom are focusing on hyperscale colocation services.
- Tier 4 data centers are the next most preferred, mainly by large enterprises, as they provide 99.995% uptime. However, high cost is the major factor for the low adoption of these facilities. With the data traffic generation, upcoming data centers are expected to follow Tier 4 standards. In the United States, IP traffic reached an annual run rate of 955.7 exabytes in 2021, up from an annual run rate of 376.2 exabytes in 2016, suggesting the growing demand for more redundant and efficient facilities. As a result, tier 4 data centers are expected to hold the highest market share of 48.9% in 2029, followed by tier 3 facilities with a share of 45.4%.
- Tier 1 & 2 data centers are the least preferred as tier 1 has an expected uptime of 99.671% (28.8 hours of downtime annually), while tier 2 has an expected uptime of 99.741% (22 hours of downtime annually). These data centers are commonly utilized by small businesses looking for a cost-effective option for their data storage needs. However, due to lower functionality, even SMEs are focusing on adopting wholesale colocation services with a Tier 3 certification. Therefore, tier 1 & 2 DCs are expected to showcase the lowest growth.
Understand The Key Trends Shaping This Market
