U.S. Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government,

U.S. Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

The U.S. Data Center Market size was valued at USD 103.27 billion in 2023, and is predicted to reach USD 158.55 billion by 2030, at a CAGR of 6.3% from 2024 to 2030.

In the US, more than 5,300 data centers are strategically distributed nationwide. Northern California is a notable hub for data-intensive companies such as Google, Facebook, Uber, Twitter, and Yelp. This widespread distribution highlights the extensive integration of data into the US economy and the impact of cost-effective energy across various regions. Interestingly, the top 10 market locations account for less than 40% of all US facilities, emphasizing the extensive geographic spread, with nearly every state hosting at least one data center. The industry is dominated by major operators such as Lumen Technology, Verizon, Digital Realty, AT&T, and Equinix, that collectively comprise 25.9% of all US market growth.

Additionally, a PwC report commissioned by the Data Center Coalition (DCC) revealed that market growth contributed USD 2.1 trillion to the US GDP between 2017 and 2021. According to CloudScene, an Australian-based data intelligence firm, the US hosts 5,389 network infrastructures, significantly more than the UK's 512.

However, the data center industry faces significant challenges, notably the high initial investment required and stringent environmental regulations. Establishing and maintaining data centers demands substantial upfront financial commitments, posing barriers for smaller businesses and startups. Moreover, ongoing compliance with environmental standards mandates continuous investments in energy-efficient technologies hinders the overall market growth.

On the other hand, the integration of edge computing into network infrastructure operations presents promising opportunities for the industry's future. By minimizing latency and enabling real-time processing, edge computing supports applications such as IoT and AR, thereby alleviating the burden on centralized cloud data centers while offering scalability and flexibility. This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, thereby creating diverse opportunities for data center providers. Recent investments in startups such as Armada underscore the growing interest in edge computing solutions, reflecting a concerted effort to address connectivity challenges and bridge the digital divide.

Segment Overview

The U.S. Data Center industry is segmented based on type, deployment model, enterprise size, and end users.
Based on type, the market is segmented into colocation, hyperscale, edge, and others.
Based on deployment model, the market is divided into on-premise, cloud, and hybrid.
Based on enterprise size, the market is bifurcated into large enterprise, small and medium size enterprise.
Based on the end users, the market is divided into BFSI, IT and telecom, government, energy and utilities, and other end users.

Key Market Players

Leading players operating in the U.S. data center industry include:
• Amazon.com Inc.
• IBM Corporation
• Microsoft Corporation
• Cisco System Inc.
• Oracle Corporation
• SAP SE
• Hewlett Packard Enterprise Company
• NTT Communications Corporation
• Equinix Inc.
• Digital Reality Trust Inc

KEY BENEFITS
• The U.S. data center market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the U.S. data center market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.