U.S Data Center Market - Forecast(2024 - 2030)

Report Code: ITR0475 Report Format: PDF + Excel

U.S Data Center Market Overview:

U.S Data Center Market size is estimated to reach $96 billion by 2028, growing at a CAGR of 6.15% during the forecast period 2023-2028. Increasing demand for digital infrastructure, rising data consumption and online services and technological advancements and innovations are propelling the U.S Data Center Market growth. Expansion of hyperscale data centers, catering to the increased demand for cloud services and scalable infrastructure. AI adoption continues to influence data centers, enhancing efficiency and automation.

Additionally, rising investments play a crucial role, indicating the increased importance of data management and storage. For instance, Starwood aims to invest between $3 billion in 2023. Around half the fund is being targeted for the US, around a third in Europe, and the rest in APAC. These heightened investments signify a strategic recognition of the crucial role data infrastructure plays in modern business operations. Companies are allocating substantial resources to expand and optimize data center facilities, aiming to meet the surging demands for storage, processing, and cloud-based services. These factors positively influence the U.S Data Center industry outlook during the forecast period.

Market Snapshot: 


U.S Data Center Market - Report Coverage:

The “U.S Data Center Market Report - Forecast (2023-2028)” by IndustryARC, covers an in-depth analysis of the following segments in the U.S Data Center Market.



By Provider Type

  • Enterprise
  • Colocation Provider
  • Cloud Service Provider
  • Edge Data Center
  • Hyperscale Data Center
  • Micro Data Center
  • Container Data Center

By Data Center Size

  • Small Data Center
  • Medium Data Center
  • Large Data Center

By Tier Standards

  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic catalyzed a shift in the U.S. Data Center Market, fostering accelerated digital transformation. With remote work and increased online activities, there was a surge in demand for data storage and cloud services. Businesses sought scalable and reliable infrastructures to support remote operations, boosting investments in data centers. Nevertheless, the pandemic-induced supply chain disruptions and labour shortages posed challenges, affecting timely construction and deployment of data center facilities, impacting the market's growth trajectory.
• The Russia-Ukraine war impacted the U.S. Data Center Market through heightened geopolitical risks, disrupting hardware supply chains due to trade relations. Supply chain disruptions for critical components impacted infrastructure development, causing delays in expansion projects. Increased uncertainty led to cautious investment behavior, affecting market growth and strategic decision-making.

Key Takeaways:

U.S Data Center Market Share (%) By Data Center Size, 2022

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• Edge Data Center to Register the Fastest Growth

In the U.S Data Center Market analysis, the Edge Data Center segment is estimated to grow with the highest CAGR of 8.39% during the forecast period. This rapid growth is attributed to the rising demand for low-latency services and real-time data processing. Edge Data Centers, strategically positioned closer to end-users, facilitate faster data delivery, supporting applications like IoT and 5G. This trend reflects the industry's shift towards decentralized infrastructure to meet the escalating demands of modern digital connectivity. In 2022, Cisco expanded its Cisco catalyst 9000 portfolio, offering powerful, secure, and adaptable solutions that simplify operations and empower digital transformation for businesses.

• Large Data Center is Leading the Market

According to the U.S Data Center Market forecast, the Large Data Center held the largest market valuation of $43 billion in 2022. Its prominence is driven by robust infrastructure capabilities, catering to extensive data storage needs, and accommodating the escalating demand for cloud services. The Large Data Center segment's expansive capacity and scalable architecture position it as a cornerstone, meeting diverse business requirements and sustaining a leading edge in the competitive market landscape. According to the Amazon, it is to build multiple data centers in Virginia by 2040, an estimated $35 billion investment.

• The Emergence of Green Data Centers is Poised to Drive Data Center Market Growth

The ascent of Green Data Centers signifies a pivotal shift propelling Data Center market growth. As per the Department of Energy, U.S. data centers consume approximately 2% of the nation's electricity. The surge in demand for eco-friendly solutions and energy-efficient data storage drives the need for Green Data Centers. This burgeoning demand is anticipated to unlock substantial opportunities within the Data Center market, underscoring a significant market evolution.

• Integration of Artificial Intelligence

The integration of Artificial Intelligence (AI) stands as a pivotal catalyst propelling the U.S. Data Center Market. AI adoption within data centers enhances operational efficiency, optimizing tasks like fault prediction and advanced modelling. This transformative technology incentivizes the creation of AI-specific data centers, leveraging ample power supply and lower energy costs for optimal functionality. Such integration reshapes data center design, facilitating higher densities, efficient cooling, and resource utilization. 

• Data Security Issues Hamper Market Growth

Data security concerns pose a significant challenge impeding the growth of the U.S. Data Center Market. Threats and vulnerabilities faced by modern data centers hinder seamless market expansion. For instance, In October 2022, Zoetop Business Company, the firm that owns fast fashion brands SHEIN and ROMWE, was fined US$1.9 Million by the state of New York after failing to disclose a data breach which affected 39 million customers. Implementing robust security strategies is imperative to mitigate risks stemming from cyber threats, ensuring data integrity and confidentiality. With persistent cyber threats, addressing data security issues becomes pivotal to foster trust, reliability, and sustained growth within the dynamic landscape of data center operations. Integrating diverse cloud environments, Sophisticated and continuous cyber-attacks by APTs pose significant threats to security vulnerabilities.   

Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the U.S Data Center Market. The top 10 companies in this industry are listed below:

  1. Amazon Web Services, Inc.
  2. Microsoft Corporation
  3. Google LLC
  4. Equinix, Inc.
  5. Meta Platforms, Inc.
  6. Digital Realty
  7. Oracle Corporation
  8. Cisco Systems, Inc.
  9. NTT
  10. CoreSite (American Tower Corporation)

Scope of the Report: 

Report Metric


Base Year Considered


Forecast Period




Market Size in 2028

$96 billion

Segments Covered

Provider Type, Data Center Size, Tier Standards

Key Market Player

  1. Amazon Web Services, Inc.
  2. Microsoft Corporation
  3. Google LLC
  4. Equinix, Inc.
  5. Meta Platforms, Inc.
  6. Digital Realty
  7. Oracle Corporation
  8. Cisco Systems, Inc.
  9. NTT
  10. CoreSite (American Tower Corporation)

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1.U.S Data Center Market - Overview
    1.1.Definitions and Scope
2.U.S Data Center Market - Executive Summary
3.U.S Data Center Market - Comparative Analysis
    3.1.Company Benchmarking - Key Companies
    3.2.Market Share Analysis - Key Companies
    3.3.Patent Analysis
    3.4.Pricing Analysis
4.U.S Data Center Market - Start-up Companies Scenario (Premium)
    4.1.Key Start-up Company Analysis by
        4.1.3.Venture Capital and Funding Scenario
5.U.S Data Center Market – Market Entry Scenario Premium (Premium)
    5.1.Regulatory Framework Overview
    5.2.New Business and Ease of Doing Business Index
    5.3.Case Studies of Successful Ventures
6.U.S Data Center Market - Forces
    6.1.Market Drivers
    6.2.Market Constraints
    6.3.Market Challenges
    6.4.Porter's Five Force Model
        6.4.1.Bargaining Power of Suppliers
        6.4.2.Bargaining Powers of Customers
        6.4.3.Threat of New Entrants
        6.4.4.Rivalry Among Existing Players
        6.4.5.Threat of Substitutes
7.U.S Data Center Market – Strategic Analysis
    7.1.Value Chain Analysis
    7.2.Opportunities Analysis
    7.3.Market Life Cycle
8.U.S Data Center Market – by Provider Type (Market Size – $Million/$Billion) 
    8.2.Colocation Provider
    8.3.Cloud Service Provider
    8.4.Edge Data Center
    8.5.Hyperscale Data Center
    8.6.Micro Data Center
    8.7.Container Data Center
9.U.S Data Center Market – by Data Center Size (Market Size – $Million/$Billion) 
    9.1.Small Data Center
    9.2.Medium Data Center
    9.3.Large Data Center
10.U.S Data Center Market – by Tier Standards (Market Size – $Million/$Billion)
    10.1.Tier 1
    10.2.Tier 2
    10.3.Tier 3
    10.4.Tier 4
11.U.S Data Center Market – Entropy
12.U.S Data Center Market – Industry/Segment Competition Landscape Premium 
    12.1.Market Share Analysis
        12.1.1.Market Share by Provider Type – Key Companies
    12.2.Competition Matrix
    12.3.Best Practices for Companies
13.U.S Data Center Market – Key Company List by Country Premium Premium 
14.U.S Data Center Market - Company Analysis
    14.1.Amazon Web Services, Inc.
    14.2.Microsoft Corporation
    14.3.Google LLC
    14.4.Equinix, Inc.
    14.5.Meta Platforms, Inc.
    14.6.Digital Realty
    14.7.Oracle Corporation
    14.8.Cisco Systems, Inc.
    14.10.CoreSite (American Tower Corporation)

"Financials to the Private Companies would be provided on best-effort basis."

The U.S Data Center Market is projected to grow at 6.15% CAGR during the forecast period 2023-2028.

U.S Data Center Market size is estimated to be $67 billion in 2022 and is projected to reach $96 billion by 2028

The leading players in the U.S Data Center Market are Amazon Web Services, Inc., Microsoft Corporation, Google LLC, Equinix, Inc., Meta Platforms, Inc., and Others.

heightened focus on sustainability, accelerated adoption of edge computing to meet evolving connectivity demands, increasing reliance on hybrid cloud solutions are some of the major U.S Data Center Market trends in the industry which will create growth opportunities for the market during the forecast period.

Increasing demand for digital infrastructure, rising data consumption and online services and technological advancements and innovations are propelling the U.S Data Center Market growth.