United States Data Center Market

United States Data Center Market Size and Share:

The United States data center market size was valued at USD 50.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 108.2 Billion by 2033, exhibiting a CAGR of 8.9% from 2025-2033.  The growing adoption of cloud computing, the increasing demand for edge infrastructure, the rising focus on artificial intelligence (AI)-driven workloads, and the expanding investments in data center facilities are the key factors driving the market growth in this region.

The data center market in the US is significantly expanding due to the increased demand for cloud services and edge computing. In line with this, the increased usage of AI, machine learning (ML), high computing, and storage powers are leading organizations to enhance their information technology (IT) support. For instance, Goldman Sachs Research estimates that due to the integration of AI, the demand for data centers is poised to grow 160% by 2030. Moreover, the expanding application of these technologies in various sectors is driving the need for improving data handling, aiding the market growth. Besides this, the country has access to fast internet, which enhances the development of data centers, which is also contributing to the market expansion. Apart from this, the shift towards remote work, online business, and streaming of online content, for flexible and cost-effective data center solutions is providing an impetus to the market expansion.

Concurrently, the rising adoption of green solutions, especially renewable energy sources is acting as another growth-inducing factor as data center owners are strongly investing in different energy-efficient technologies and green power solutions. For example, the U.S. Department of Energy (DOE) anticipates the rising electricity demand underscored by the nationwide goal to meet the demands by 2050. In addition to this, the increasing state tax incentives, are supporting the development of these facilities, boosting the market demand. Furthermore, continuous improvements in cooling and the shift toward liquid cooling are enhancing energy efficiency, thus supporting the market growth. In conjunction with this, industries are embracing the ongoing digital transformation, promoting the need to create sustainable infrastructure, and aiding in the market expansion. Moreover, the method of decentralizing computing resources across the data centers, and advancement in edge computing solutions in meeting localized data center requirements, thereby propelling the market forward.

United States Center Market Trends:

Rising adoption of hyperscale data centers

The US data center market is rapidly expanding, due to the hyperscale facilities promoting the demand for cloud and AI services. For instance, the United States leads the hyperscale data center market, accounting for approximately 51% of the global total. This is further driving the market demand for data centers. In addition, the leading tech organizations are significantly investing in these facilities to address the demand for massive and cost-efficient facilities, boosting the market growth. Moreover, hyperscale facilities are required for substantive traffic consumption, such as video streaming services, video games, and real-time data analysis services, which is impelling the market growth. Furthermore, these services are important in the development of the processing power, storage, and connection that is needed to underpin the digital-first world across industries, thereby contributing to the market expansion.

Integration of renewable energy solutions

The integration of renewable energy solutions is transforming the US data center market, as operators are embracing the utilization of green energies. According to the US DOE, data centers are one of the most energy-intensive building types, depleting 10 to 50 times the energy per floor space of a commercial office building. This immense energy has prompted a shift from conventional electricity to renewable power in large-scale data centers because the clients, customers, and legislation agencies are promoting their demand. Moreover, many regions such as Texas and Iowa, have solar and wind resources, which are significantly fueling the market demand. Additionally, renewable energy promotes ecological balance, allowing the data center to minimize the long-term energy, thus impelling the market growth. This trend persuades the industry to go green and embrace more innovation of technologies that support energy efficiency in the digital world, supporting the market growth.

Expansion of edge computing infrastructure

The data center market is witnessing robust demand due to its ability to provide lower latency for the internet of things (IoT), 5G, and other connected-car applications. According to a report by IoT Analytics, the data center market is anticipated to increase by 13% to 18.8 billion by the end of 2024, further driving the market forward. These micro centers are placed in areas with high population density and good connectivity, majorly in the Midwestern and Southeast to offer localized low-latency data processing, driving the market demand. Moreover, this has driven strong investments into the advancement of edge architectures to increase the performance for attaining real-time data processing, which is necessary for meeting the emerging needs of data-centric technologies. Apart from this, the shift toward edge computing solutions is crucial for the backing of new technological tendencies which are in the process of development, thus aiding the market growth.

United States Center Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States data center market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on component, type, enterprise size, and end user.

Analysis by Component:

• Solution
• Services
   

The demand for solutions in the U.S. data center market is driven by the integration of advanced cooling, storage, and power systems to enhance efficiency. In addition, as users are seeking better and more efficient software-defined data center technologies, business entities are inspired to build better architectures in order to establish higher capacities for performance, cost control, and data protection, thus fueling the market growth.

Meanwhile, services such as managed hosting and maintenance are gaining traction, as enterprises are prioritizing operational reliability and outsourced expertise. In line with this, firms prefer managed services, especially in their network areas, as they require constant observation and preventive maintenance. This further ensures that the information technology (IT) division works in harmony and aligns with the business objectives, providing an impetus to the market.

Analysis by Type:

• Colocation
• Hyperscale
• Edge
• Others
   

The colocation facilities are growing because enterprises are seeking cost-effective alternatives to owning infrastructure. These centers offer enhanced security features, power backup, and consistently reliable connectivity, which enable such organizations to securely accommodate their in-house IT systems and networks, thus contributing to the market expansion.

Moreover, the demand for hyperscale data centers is surging, driven by cloud providers scaling their operations, as high-capacity solutions are required from the cloud provider, social networks, and developments of AI technology. These centers add great expansibility, power, and operational versatility to the equation to accommodate the substantial data processing demands, which is aiding the market growth.

Besides this, edge data centers are expanding due to their ability to support latency-sensitive applications like IoT and 5G, catering to flexible deployment needs. Additionally, the contact with end consumers ensures real-time data processing, which is vital for industries such as autonomous cars, medical diagnostics, and smart cities, driving the market forward.

Analysis by Enterprise Size:

• Large Enterprises
• Small and Medium Enterprises
   

The surging demand from large enterprises is impelling the growth, as they heavily invest in the robust IT infrastructure to handle growing workloads. In addition to this, for processing such massive data on a large scale, colocation data centers are significantly required. These organizations focus on reliability, compliance, and disaster recovery, further implementing solid solutions with strong tendencies toward high availability and efficient cloud working, aiding the market growth.

Whereas small and medium enterprises (SMEs) are increasingly adopting colocation and cloud services. Furthermore, the digital transformation of operational environments occurs with the help of cloud-based and edge data centers, making them cost-effective. Apart from this, these enterprises aim at scaling and focusing on latency concerns, to integrate, facilitate, and optimize with minimal initial investment and maximum output, which is strengthening their market share.

Analysis by End User:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others
   

Banking, financial services, and insurance or BFSI industry depend on data centers for strong data protection, compliance with guidelines and standards, and faster processing of trends and patterns for secure client engagements and reliable business decisions., thus supporting the market growth.

Moreover, the increasing need for connectivity and the growing consumption of data are making the IT and telecommunications companies integrate hyperscale and edge data centers to support the users and provide reliable networks., which is boosting the market demand.

Additionally, data centers are necessary for government organizations to have secure data storage, availability of data for providing government digital services, and to have strong compliance to carry out the e-governance services, contributing to the market expansion.

Furthermore, the transformation of energy systems strengthens the need for data centers to improve resource utilization, control smart grids, and support renewables, to provide seamless services to the consumers, thereby impelling the market growth.

Other sectors ranging from healthcare, retail, and education use data centers for their business operations security as well as change hence improved services, which is also acting as another growth-inducing factor.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

The market demand in the Northeast region is driven by its dense connectivity, proximity to financial hubs like New York, and robust infrastructure, making it a strategic location for colocation and enterprise data centers.

In the Midwest, demand is growing due to rising investments in data centers, driven by low operational costs, abundant renewable energy, and proximity to major metropolitan areas, which fosters growth in hyperscale and edge computing facilities.

The market demand in the South is primarily driven by favorable tax incentives, affordable land, and rising demand for cloud services, especially in states like Texas and Virginia.

In the West region, the market demand is increasing, owing to Silicon Valley, which excels as a hub for innovation, supporting hyperscale developments and advanced technology deployments to meet the high-tech industry demands.

Competitive Landscape:

The competitive landscape in the United States data center market is driven by the involvement of mega cloud, colocation, and smaller players. The growing demand for cloud services and the possibility of including new levels of computing in hyperscale, is promoting plans to meet these needs fueling the market growth. Additionally, several colocation providers have emerged to adopt these innovations because they offer flexible services that meet different enterprise needs for hybrid IT, thus aiding the market growth. Furthermore, local competitors rely on specific services, devices, and solutions including edge computing equipment and energy-saving technologies, which is impelling the market growth. Besides this, the competition is rising in areas where operators are concentrated around network connections and actively developing sustainable initiatives and reliable operating infrastructure to meet customer demand.

The report provides a comprehensive analysis of the competitive landscape in the United States center market with detailed profiles of all major companies.

Latest News and Developments:

• In December 2024, Amazon Web Services announced the Trainium3 AI chip as the next generation and the Trainium2-based cloud instances, offering improved performances, cost-efficiency for the training of AI models, and general deployment.

United States Data Center Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States data center market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States data center market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.