As of March 2025, there were a reported 5,426 data centers in the United States, the most of any country worldwide. A further 529 were located in Germany, while 523 were located in the United Kingdom. What is a data center? A data center is a network of computing and storage resources that enables the delivery of shared software applications and data. These facilities can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As a result, whether it is a cloud, colocation, or managed service, data center real estate will have increasing importance worldwide. Hyperscale data centers In the past, data centers were highly controlled physical infrastructures, but the cloud has since changed that model. A cloud data service is a remote version of a data center – located somewhere away from a company's physical premises. Cloud IT infrastructure spending has grown and is forecast to rise further in the coming years. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers.

The size of the US Data Center Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a facility that keeps computer systems and networking equipment housed, processing, and transmitting data. It represents the infrastructure on which organizations carry out their IT operations and host websites, email servers, and database servers. Data centers, therefore, are imperative to any size business: small start-ups or large enterprise since they enable digital transformation, thus making business applications available.The US data center industry is one of the largest and most developed in the world. The country boasts robust digital infrastructure, abundant energy resources, and a highly skilled workforce, making it an attractive destination for data center operators. Some of the drivers of the US data center market are the growing trend of cloud computing, internet of things (IoT), and high-performance computing requirements.Top-of-the-line technology companies along with cloud service providers set up major data center footprints in the US, mostly in key regions such as Silicon Valley and Northern Virginia, Dallas, for example. These data centers support applications such as e-commerce-a manner of accessing streaming services-whose development depends on its artificial intelligence financial service type. As demand increases concerning data center capacity, therefore, the US data centre industry will continue to prosper as the world's hub for reliable and scalable solutions. Recent developments include: February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2024, the power capacity of the existing data centers in Northern Virginia was 2.9 gigawatts. Northern Virginia was not only the market with the largest data center inventory in the United States but also the leading market in new data center capacities under construction.

The North America Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Country (Canada, Mexico, United States). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

The United States Data Center Market is segmented by Hotspot (Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

The United States is experiencing a surge in data center construction, with the power supply under construction reaching 6.4 gigawatts in 2024. This marks a 100 percent increase from previous years, reflecting the growing demand for data storage and processing capabilities across the country. The rapid expansion of data centers underscores their crucial role in supporting the digital infrastructure that powers businesses and consumers alike. Northern Virginia leads the charge Northern Virginia has emerged as the epicenter of data center growth in the United States. In 2023, the region boasted the highest existing data center power capacity, solidifying its position as the market with the largest data center inventory in the country. Furthermore, Northern Virginia continues to dominate new construction efforts, with data centers under construction in the second half of 2024 set to add a staggering 2.7 gigawatts of power capacity. This far outpaces other major markets such as Dallas, Austin, and NYC-NJ combined. Cloud infrastructure fuels growth The expansion of data centers is closely tied to the increasing adoption of cloud infrastructure services. Enterprise spending on cloud infrastructure services has soared in the past decade, fueled by organizations' growing demand for modern networking, storage, and database solutions. As companies continue to migrate their operations to the cloud, the need for robust data center facilities is expected to rise, further propelling the construction boom.

In the second half of 2024, the most expensive deal for a data center site sale was the Loop 202 & Dobbins Rd, Laveen deal in Phoenix. IDM Companies sold the 229 acres site to Amazon for 5.3 billion U.S. dollars.

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Hyperscale Data Center Market Size 2025-2029

The hyperscale data center market size is forecast to increase by USD 485.5 billion at a CAGR of 38.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for data center colocation facilities due to the digital transformation and cloud adoption by businesses. This trend is particularly prominent among global enterprises seeking to improve operational efficiency, reduce IT costs, and enhance data security. Additionally, infrastructure innovations, such as the adoption of artificial intelligence, machine learning, and the Internet of Things, are fueling the need for larger, more powerful data centers. 
Another key driver is the consolidation of data centers, as companies look to optimize their IT infrastructure and reduce operational complexity. This consolidation is leading to the development of large-scale hyperscale data centers, which offer economies of scale and improved efficiency. However, challenges remain, including the high capital and operational costs associated with building and maintaining hyperscale data centers, as well as the need to ensure reliable power and cooling infrastructure. 
Companies seeking to capitalize on this market opportunity must navigate these challenges effectively, while also staying abreast of emerging technologies and trends. Overall, the market presents significant growth potential for investors and businesses alike, with opportunities in both the public and private sectors.

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Capital expenditure for infrastructure development and maintenance is a significant market restraint. Sustainability is another challenge, with the need for green data centers becoming increasingly important. Solarvest and Centexs are two companies focusing on this area, offering renewable energy for data centers. Market dynamics are constantly evolving, with financial services and cloud providers playing a crucial role in shaping the market. The market is expected to continue growing, driven by the increasing adoption of cloud services and the need for efficient data management. NGFWs (Next-Generation Firewalls) are essential infrastructure components in hyperscale data centers, providing network security and threat protection.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Critical infrastructure
  Support infrastructure


End-user

  BFSI
  Energy
  IT
  Others


Component

  Solutions
  Service


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  South America

    Brazil


  Middle East and Africa

By Type Insights

The critical infrastructure segment is estimated to witness significant growth during the forecast period. The market encompasses the infrastructure, components, and size required for large-scale data processing in financial services, cloud providers, and other industries. Servers, a crucial infrastructure component, facilitate application processing and data transfer. Modern servers feature dual power supplies, redundant array of independent disks systems, and error-correction memory, ensuring reliability and durability. Hot-swapping and cooling techniques mitigate overheating. Mission-critical servers offer fault-tolerance and low failure rates for optimal data center uptime. Remote management software enables power configuration and rebooting, while virtualization increases computing resource utilization.

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The critical infrastructure segment was valued at USD 33.10 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the US dominates data center spending due to the presence of numerous Fortune 500 companies, including Alphabet Inc. (Google), Microsoft Corp., Facebook Inc., Apple Inc., and Amazon.Com Inc. (Amazon Web Services). The country's investments in data center construction continue to grow, with a focus on sustainable power hotspots for server farm operations. Hyperscale data centers in North America are primarily managed by Content Security Policies (CSPs), colocation providers, and media transmission

The South America Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Country (Brazil, Chile). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

Northern Virginia is by far the largest data center market in the United States when measured by total inventory. The region had capacity of around 2,600 megawatts in the first half of 2024, a significant increase on the previous year. The Dallas/Ft. Worth region had the second-highest capacity, followed by Chicago. Northern Virginia could face a slowdown in construction Situated close to major east coast urban centers, the Northern Virginia region is considered a key hyperscale data center hub. The region had a reported 1,540 megawatts of data center capacity under construction as of the second half of 2023, far more than any other U.S. market. However, future expansion may be hindered by shifting local infrastructure conditions, with the growing impact of large-scale facilities leading local decision makers to reassess planning legislation. Rental rates on the rise The average monthly rental rate for data center capacity in primary U.S. markets surged to over $174 per kilowatt in 2024. This is partially due to increased demand, with digital transformation driving the adoption of cloud services, and with the adoption of data intensive artificial intelligence (AI) applications. However, data centers operators are also experiencing difficulties in data center construction, as rising utilities costs and supply chain continue to apply pressure.

The U.S. data center market will witness investments of USD 148.52 billion by 2029, growing at a CAGR of 6.54%. The U.S. data center market witnessed investments from several colocation, hyperscale, and data center operators.

The Report Covers United States Data Center Construction Companies and the Market is Segmented by Infrastructure (Electrical Infrastructure (UPS Systems and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, and Other Mechanical Infrastructure), General Construction), by Tier Type (Tier-I and -II, Tier-III, and Tier-IV), by End User (BFSI, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

In 2024, Atlanta had the highest data center net absorption among the leading data center markets in the United States, amounting to 705.8 megawatts. Net absorption is the capacity that was rented minus the capacity that became available during the period. While Atlanta was the most active market, Northern Virginia retained top position as the market with the largest data center inventory and the market with the most new data center capacities under construction.

United States data center liquid cooling market size reached USD 759.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,153.7 Million by 2033, exhibiting a growth rate (CAGR) of 17.1% during 2025-2033​. The increasing demand for data processing and storage, a growing emphasis on energy efficiency and sustainability, the rise of high-performance computing applications, the expansion of edge computing, escalating data traffic, and the need for 24/7 data service availability are some of the major factors stimulating the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on component, data center type, end use, and application.

The Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Region (APAC, Africa, Europe, Middle East, North America, South America). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

Snapshot img

Data Center Construction Market Size 2025-2029

The data center construction market size is forecast to increase by USD 41 million, at a CAGR of 8.8% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for colocation facilities. Companies are increasingly turning to colocation solutions to reduce IT infrastructure costs and improve operational efficiency. Another trend in the market is the growing focus on constructing green data centers, which use renewable energy and energy-efficient technologies to reduce carbon footprint and lower operational costs.
However, the high power consumption of data centers remains a challenge, necessitating the adoption of advanced cooling systems and energy management systems. Additionally, the market is witnessing increased competition, driving down prices and pushing companies to differentiate through superior service offerings and innovative technologies. Overall, the market in North America is poised for a rise in growth, driven by these key trends and challenges.

What will be the size of the market during the forecast period?

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The market is experiencing significant growth as businesses increasingly rely on digital transformation and the adoption of advanced technologies. This shift towards data-driven operations has led to a rise in demand for rise and sustainable data center infrastructure. Data use, a primary driver of data center construction, is expanding at an unprecedented rate. With the rise of cloud native applications, IoT gadgets, and cloud migration services, organizations are generating and processing vast amounts of data daily. This data requires secure, efficient, and scalable storage solutions, leading to increased investment in data center construction.
Cloud storage solutions have become a cornerstone of modern business strategies. They offer flexibility, cost savings, and enhanced security compared to conventional data centers. However, the adoption of cloud infrastructure comes with its challenges, including cloud security threats and cost optimization. Cloud security threats necessitate stringent measures to protect sensitive data, while cloud cost optimization requires efficient infrastructure management and virtualization. Data center sustainability is another critical trend shaping the market.
With growing concerns over carbon footprint and energy consumption, data center design and automation have become essential components of sustainable infrastructure. Data center cooling systems, for instance, have evolved to incorporate renewable energy sources and energy-efficient technologies. Hybrid cloud has gained popularity due to their ability to combine the benefits of public, private, and on-premises cloud environments. They offer organizations the flexibility to choose the right cloud model for their specific needs while maintaining control over their data.
Cloud infrastructure management and governance have become essential to ensure data security and compliance. Cloud governance policies help organizations manage access, usage, and security of their cloud resources. Infrastructure management tools enable efficient resource allocation, monitoring, and optimization. Data center optimization is another key trend, with organizations seeking to maximize the utilization of their data center resources. 
The data center construction market is witnessing robust growth, driven by the rising demand for hyperscale data centers and the expansion of edge data centers. Modular data center design is gaining traction for its flexibility and scalability, while green data center construction emphasizes sustainability through renewable energy solutions. AI-driven data centers are enhancing operational efficiency, and cloud data center growth is supporting the rise of cloud computing. Innovations in data center cooling and high-density server racks are optimizing energy use, while data center fiber optics enable faster data transmission. Colocation Data Center Demand is increasing as businesses seek shared infrastructure, and disaster recovery data centers are becoming crucial for business continuity. Additionally, 5G-ready data centers and data center sustainability trends are shaping the future of this dynamic market.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


Type

  Electrical construction
  Mechanical construction
  General construction


Vertical

  IT & Telecom
  BFSI
  Government & Defense
  Healthcare
  Energy
  Others


Geography

  North America

    Canada

In 2025, Equinix was the largest data center real estate investment trust (REIT) in the United States by market capitalization. The market cap of Equinix measured 81.88 billion U.S. dollars, about 31 billion U.S. dollars higher than the second largest REIT Digital Realty. Over the past years, several notable acquisitions of data center REITs took place, including Blackstone's acquisition of QTS, KKR's acquisition of CyrusOne, and American Tower's acquisition of CoreSite.

Market Overview:

United States modular data center market size is projected to exhibit a growth rate (CAGR) of 16.11% during 2024-2032. The rising demand for scalable data storage solutions, the need for quick deployment to support emerging technologies, surging energy efficiency considerations, the decentralization of data processing, the adoption of cloud computing, cost, and increased competition among key players are some of the primary factors propelling the market growth.

A modular data center is a scalable and self-contained facility that houses data processing, storage, and networking equipment within prefabricated, standardized modules. They are designed to be easily transported, deployed, and expanded as needed, making them a flexible solution for various industries. Modular data centers work by integrating all the essential components of a traditional data center into compact units, including power and cooling systems, security measures, and IT infrastructure. They are typically built off-site and then assembled at the desired location, significantly reducing construction time and costs. The primary uses of modular data centers encompass a wide range of applications. They are often employed by organizations that require rapid deployment of IT infrastructure, such as disaster recovery centers, remote or temporary operations, and edge computing facilities. Their modular nature also makes them suitable for companies with fluctuating computing demands, as additional modules can be easily added or removed to match evolving requirements. The advantages of modular data centers include enhanced scalability, energy efficiency, and cost savings. Moreover, modular data centers are designed with energy-efficient technologies and cooling systems, optimizing energy consumption.

United States Modular Data Center Market Trends:

The United States modular data center market is influenced by several key drivers, such as the escalating demand for scalable and efficient data storage solutions and the burgeoning volume of digital information. Additionally, the need for rapid deployment of data centers to support emerging technologies, such as fifth-generation (5G), edge computing, and the Internet of Things (IoT) applications, has further fueled the market growth. In line with this, businesses are turning to modular data centers that are designed for optimal energy consumption and are equipped with advanced cooling systems, which is boosting the market growth. Moreover, the ongoing trend towards remote work and the decentralization of data processing has prompted organizations to invest in modular data centers that can be strategically placed closer to end-users, enhancing latency-sensitive applications, which is supporting the market growth. Apart from this, the increasing adoption of cloud computing and the consequent need for hybrid and edge data centers are among the key drivers, as they require flexible and scalable infrastructure solutions, is propelling the facility demand.

United States Modular Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on component, data center size, application, and industry vertical.

Component Insights:

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• Solutions
  • All-in-One Module
  • Individual Module
• Services
  • Design and Consulting
  • Integration and Deployment
  • Support and Maintenance
    

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions (all-in-one module and individual module) and services (design and consulting, integration and deployment, and support and maintenance).

Data Center Size Insights:

• Small and Medium-sized Data Centers
• Large Data Centers
  

A detailed breakup and analysis of the market based on data center size have also been provided in the report. This includes small and medium-sized data centers and large data centers.

Application Insights:

• Disaster Backup
• High Performance/ Edge Computing
• Data Center Expansion
• Starter Data Centers
  

The report has provided a detailed breakup and analysis of the market based on the application. This includes disaster backup, high performance/ edge computing, data center expansion, and starter data centers.

Industry Vertical Insights:

• BFSI
• IT and Telecom
• Retail and Manufacturing
• Healthcare
• Energy
• Media and Entertainment
• Government and Defense
• Others
  

A detailed breakup and analysis of the market based on industry vertical have also been provided in the report. This includes BFSI, IT and telecom, retail and manufacturing, healthcare, energy, media and entertainment, government and defense, and others.

Regional Insights:

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• Northeast
• Midwest
• South
• West
  

The report has also provided a comprehensive analysis of all the major regional markets, which include the Northeast, Midwest, South, and West.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

• BASELAYER Technology LLC
• Dell Technologies Inc.
• Hewlett Packard Enterprise Development LP
• Eaton Corporation plc
• Rittal GmbH & Co. KG
  

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

United States Modular Data Center Market Report Coverage:

The Data Center UPS Market is Segmented by Type (standby, Line Interactive, and Double Conversion Online), Size of Data Center (small, Medium, and Large), End-User Vertical (banking and Financial Services, Manufacturing, Information Technology, Energy, Healthcare, Government, and Entertainment and Media), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

The Data Center Power Market Report is Segmented by Type (Solution (Power Distribution Unit, UPS, Busway, and Other Solutions), Service (Consulting, System Integration, and Professional Services), End-User Application (Information Technology, Manufacturing, BFSI, Government, Telecom, and Other End-User Applications), Data Center Size (Small and Medium and Large), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.