North America 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, Go

North America 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 North America Data Center Market size was valued at USD 118.72 billion in 2023, and is predicted to reach USD 189.90 billion by 2030, at a CAGR of 6.9% from 2024 to 2030.

Reports indicate that network infrastructure significantly boosted the US GDP, with a PwC study commissioned by the Data Center Coalition revealing a USD 2.1 trillion contribution between 2017 and 2021. Data intelligence firm CloudScene highlights the US's substantial lead in market numbers, hosting 5,389 facilities, a figure five times greater than the UK's 512 network infrastructures. Additionally, significant investments by tech giants such as Amazon Web Services (AWS), demonstrated by a USD 35 billion allocation for new network infrastructure in Virginia, underscore the industry's growth trajectory and its crucial role in supporting cloud expansion initiatives, even amid broader corporate restructuring efforts.

However, the data center industry faces notable challenges, primarily the high initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands significant upfront financial commitments, creating barriers for smaller businesses and startups. Additionally, compliance with environmental regulations necessitates ongoing investments in energy-efficient technologies hinders the overall market growth.

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

Segment Overview

The North America 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.

Regional Analysis

The U.S. Holds the Dominant Market Share in North America Data Center Market

In the United States, the market landscape is defined by a strategic dispersion of over 5,300 facilities nationwide. Northern California stands out as a hub for data-intensive enterprises, hosting industry giants such as Google, Facebook, Uber, Twitter, and Yelp. This widespread distribution highlights the integration of data across various sectors of the US economy, influenced by factors such as regional energy cost considerations. Interestingly, despite the prominence of key locations such as Northern California, the top 10 data center hubs collectively represent less than 40% of all US facilities, illustrating significant geographic diversity with nearly every state hosting at least one network infrastructure. Furthermore, market dominance is evident, with the industry largely controlled by major operators such as Lumen Technology, Verizon, Digital Realty, AT&T, and Equinix, who collectively command a substantial portion of the market share.

Key Market Players
• 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 North America 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 North America 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.