United States Hyperscale Data Center Market Size and Share
United States Hyperscale Data Center Market Analysis by Mordor Intelligence
The United States Hyperscale Data Center Market size is estimated at USD 127.64 billion in 2025, and is expected to reach USD 355.75 billion by 2030, at a CAGR of greater than 23% during the forecast period (2025-2030).
Hyperscale facilities are transforming the digital infrastructure landscape in the United States, serving as the foundation for AI-driven advancements and the expansion of cloud computing. With a valuation in the triple-digit billions, the market plays a crucial role in supporting the nation's digital economy, influencing industries such as manufacturing, healthcare, finance, and government operations.
The integration of AI workloads and cloud migration is significantly altering power requirements within the hyperscale ecosystem. AI-specialized servers, which consume three to four times more power than traditional CPU servers, have driven a 30-40% increase in demand in key regions. Northern Virginia, which hosts approximately 35% of the country's hyperscale data centers, faces power grid limitations, prompting a shift toward emerging secondary markets like Georgia, Ohio, and Texas. Hyperscale Colocation is witnessing rapid growth as businesses seek scalable capacity solutions without substantial capital investments, while the Cloud & IT segment remains the largest end-user category due to the growing demand for cloud services across industries.
Competition in the market has intensified, with hyperscale providers expected to invest over USD 300 billion in capital expenditures by 2025. This surge in investment has created a two-tiered market, where established companies such as Amazon Web Services, Microsoft Corporation, and Google LLC dominate through economies of scale, while specialized firms like CoreWeave and Aligned Data Centers focus on high-density AI infrastructure. A critical challenge for the industry is the widening gap between power supply and demand, with data center electricity consumption in the United States projected to rise to 12% of the national total by 2028, up from 4.4% in 2023.
The regulatory environment is evolving rapidly to address the environmental impact of data centers. States like California have introduced legislation, such as Senate Bills 57 and 58, to protect consumers and encourage the use of carbon-free energy. This shift is driving innovation in cooling technologies, with liquid cooling adoption expected to grow from 10% in 2024 to over 20% in 2025. As AI infrastructure demands intersect with power constraints, data sovereignty is becoming a critical factor in determining facility locations. Hyperscale providers are balancing the need for computational proximity with the realities of power availability and regulatory compliance.
United States Hyperscale Data Center Market Trends and Insights
AI/ML Training Clusters Driving Unprecedented Power Density Requirements
The rapid expansion of AI workloads is revolutionizing hyperscale data center design, with power density requirements surging from the traditional 15kW per rack to an unprecedented 140kW or more for AI-optimized infrastructure. This transformation necessitates a complete overhaul of cooling systems, power distribution, and facility layouts to handle the intense thermal and electrical demands of GPU-driven AI training clusters. The unveiling of advanced GPUs, such as the GB200 NVL72 and the anticipated GB300 NVL72, signals the industry's progression toward 600 kW racks, marking a significant leap in power density. Hyperscale providers now face the challenge of managing two distinct infrastructure tracks: conventional cloud computing setups and specialized AI clusters with unique design needs. This divergence creates opportunities for specialized operators to cater to AI workloads while pressuring established players to adapt their extensive infrastructures to meet these evolving requirements.
Rapid Migration of Tier-1 Cloud Workloads Accelerating Capacity Demand
Enterprises are increasingly allocating three times more spending on cloud services compared to their own data center infrastructure. This rapid shift is fueling a significant demand for hyperscale capacity as critical workloads, previously confined to on-premises systems due to security and compliance concerns, are now transitioning to cloud environments. By 2025, it is anticipated that over 50% of workloads in large organizations will operate in the cloud, marking a transformative change in enterprise IT architecture. Hyperscale providers are required to not only scale their capacity but also strengthen security and compliance measures to support these high-priority workloads. This trend is particularly evident in regulated sectors such as healthcare and financial services, where stringent compliance requirements had previously slowed cloud adoption. However, advanced security architectures and specialized compliance frameworks are now enabling these industries to embrace cloud solutions effectively.
Surging 5G/6G‐Led Edge Demand Accelerating Hyperscale Builds
The rapid expansion of 5G infrastructure is transforming hyperscale deployment strategies. Edge computing demands are driving a shift toward distributed architectures that complement centralized facilities. This approach introduces smaller, strategically placed hyperscale nodes that manage latency-sensitive tasks closer to end users while seamlessly integrating with larger regional centers. The number of 5G connections is expected to grow from 1.1 billion in 2022 to approximately 5.9 billion by 2027, necessitating significant investments in supporting data center infrastructure. Importantly, these edge deployments are not replacing traditional hyperscale centers but are creating a collaborative ecosystem where workloads dynamically move between edge and core based on latency, bandwidth, and processing needs. Additionally, the development of 6G technology, though in its early stages, is already influencing hyperscale architecture designs. Providers are preparing facilities to accommodate the ultra-high-bandwidth and low-latency requirements anticipated with the next generation of wireless technology.
By End User: Cloud & IT Leads While Vertical-Specific Demands Emerge
The Cloud & IT segment dominates the hyperscale data center market, driven by the rapid expansion of cloud service providers and the increasing complexity of IT infrastructure needs. This segment plays a pivotal role as an innovation hub, introducing advanced technologies and practices that influence other sectors. The telecommunications industry is witnessing significant growth, fueled by the deployment of 5G networks, which demand enhanced edge computing capabilities to complement centralized hyperscale facilities. In the financial services sector, institutions are increasingly adopting cloud migration as regulatory barriers are addressed through specialized compliance frameworks and improved security measures.
The Media & Entertainment segment is experiencing rapid growth, driven by the surge in streaming services and cloud gaming platforms, which require extensive storage and advanced content delivery systems. Government adoption of hyperscale services is accelerating, particularly at the federal level, with initiatives like the Federal Cloud Computing Strategy encouraging agencies to utilize commercial cloud services instead of building dedicated infrastructure. Manufacturing and E-Commerce sectors are leveraging hyperscale resources to implement advanced analytics and artificial intelligence, optimizing operations and enhancing customer experiences. The diversification of end-user segments presents challenges for hyperscale providers, who must balance the efficiency of standardization with the need to meet industry-specific requirements. This dynamic is fostering innovation in service delivery models, as providers develop tailored solutions for various vertical markets while maintaining the cost advantages of the hyperscale business model.
Competitive Landscape
The United States hyperscale data center market is primarily controlled by major cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which collectively dominate a significant share of the market's capacity. This stronghold creates substantial challenges for new entrants, as leading companies utilize economies of scale to make extensive infrastructure investments that smaller competitors cannot rival. However, the market is witnessing a shift, with specialized providers like CoreWeave and Aligned Data Centers focusing on high-density AI infrastructure designed for specific workloads, establishing distinct positions in the competitive landscape. The focus is transitioning from raw capacity to specialized expertise, particularly in AI infrastructure, where technical innovation provides a sustainable advantage over scale dominance.
New opportunities are arising at the intersection of traditional hyperscale services and industry-specific needs, with providers offering tailored solutions for sectors such as healthcare, financial services, and media production. Competitive dynamics are also being reshaped by innovative energy strategies, as seen in Amazon Web Services' acquisition of a nuclear-powered data center campus in Pennsylvania, addressing the critical demand for reliable and sustainable energy sources. Emerging disruptors are challenging established players by adopting advanced technologies, such as Tachyum's processors that combine CPU, GPU, and TPU functionalities to improve efficiency and lower costs in hyperscale environments. With hyperscale companies expected to invest over USD 300 billion in 2025, the industry faces heightened competition, presenting both obstacles and opportunities across the value chain.
United States Hyperscale Data Center Industry Leaders
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Amazon Web Services, Inc. (AWS)
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Microsoft Corporation
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Google LLC
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Meta Platforms Inc.
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Digital Realty Trust Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Microsoft Corporation announced plans to invest approximately USD 80 billion in AI-powered data centers for fiscal year 2025. Over 50% of this funding is allocated to facilities within the United States. This initiative represents the company's largest annual capital expenditure to date, emphasizing the extensive infrastructure required to manage AI operations.
- April 2025: Amazon Web Services (AWS) announced plans to invest approximately USD 11 billion in Georgia to develop new data center facilities. This initiative highlights the company's strategic focus on expanding its infrastructure in regions offering advantageous power resources and regulatory frameworks. The investment underscores AWS's long-term commitment to enhancing its global operational capabilities.
- February 2025: Meta Platforms, Inc. announced plans to invest approximately USD 60-65 billion in developing advanced data center infrastructure. This initiative focuses on creating facilities specifically designed to support artificial intelligence workloads, reflecting the company's commitment to accelerating its AI advancements.
- January 2025: OpenAI, Microsoft Corporation, and their collaborators have introduced the Stargate Project, a groundbreaking initiative to invest USD 500 billion over four years in developing AI data centers. With USD 100 billion allocated for 2025, this effort signifies an unparalleled commitment to advancing specialized AI infrastructure on a massive scale.
- August 2024: Alphabet Inc.'s Google has significantly expanded its artificial intelligence (AI) training infrastructure in Iowa. The Council Bluffs campus is nearing an IT capacity of 300 MW, with projections indicating it will exceed 500 MW by 2025. This development highlights the immense scale of resources required to support AI advancements.
- April 2025: CoreWeave, Inc. has raised approximately USD 650 million to accelerate its growth in the GPU cloud industry. This funding strengthens its position as a leading provider of high-performance computing infrastructure, specifically designed for artificial intelligence applications.
United States Hyperscale Data Center Market Report Scope
Hyperscale data centers, also known as Enterprise Hyperscale facilities, are large-scale infrastructures owned and managed by the companies they support. These centers deliver a wide range of scalable applications and storage services to meet the needs of individuals and businesses. Designed for efficiency, they house thousands of servers alongside critical hardware like routers, switches, and storage disks. To ensure seamless operations, these facilities are equipped with advanced support systems, including power and cooling solutions, uninterruptible power supplies (UPS), and air distribution networks.
The United States Hyperscale Datacenter Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self Build), By Service Type (IaaS ( Infrastructure-as-a-Service), PaaS ( Platform-as-a-Service), SaaS( Software-as-a-Service)), By End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End User). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of USD (millions).
By Data Center Type | Hyperscale Colocation |
Enterprise/Hyperscale Self Build | |
By Service Type | IaaS ( Infrastructure-as-a-Service) |
PaaS ( Platform-as-a-Service) | |
SaaS( Software-as-a-Service) | |
By End User | Cloud & IT |
Telecom | |
Media & Entertainment | |
Government | |
BFSI | |
Manufacturing | |
E-Commerce | |
Other End User |
Hyperscale Colocation |
Enterprise/Hyperscale Self Build |
IaaS ( Infrastructure-as-a-Service) |
PaaS ( Platform-as-a-Service) |
SaaS( Software-as-a-Service) |
Cloud & IT |
Telecom |
Media & Entertainment |
Government |
BFSI |
Manufacturing |
E-Commerce |
Other End User |
Key Questions Answered in the Report
How big is the United States Hyperscale Data Center Market?
The United States Hyperscale Data Center Market size is expected to reach USD 127.64 billion in 2025 and grow at a CAGR of greater than 23% to reach USD 355.75 billion by 2030.
What is the current United States Hyperscale Data Center Market size?
In 2025, the United States Hyperscale Data Center Market size is expected to reach USD 127.64 billion.
What years does this United States Hyperscale Data Center Market cover, and what was the market size in 2024?
In 2024, the United States Hyperscale Data Center Market size was estimated at USD 98.28 billion. The report covers the United States Hyperscale Data Center Market historical market size for years: . The report also forecasts the United States Hyperscale Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.