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 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.

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Data Center Market Size 2025-2029

The data center market size is forecast to increase by USD 535.6 billion at a CAGR of 15.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of multi-cloud architectures and network upgrades. Businesses are recognizing the benefits of utilizing multiple cloud providers to ensure business continuity, scalability, and flexibility. This shift towards multi-cloud is fueling the demand for advanced data center infrastructure. Additionally, the implementation of Artificial Intelligence (AI) in data centers is another key trend, as organizations seek to optimize operations, improve efficiency, and gain insights from their data. However, this market is not without challenges. Cybersecurity remains a major concern, as data centers house vast amounts of sensitive information. With the increasing number of cyber threats, data center providers must invest in robust security measures to protect their clients' data and maintain trust.
Companies seeking to capitalize on these opportunities and navigate challenges effectively should focus on offering secure, scalable, and efficient data center solutions. By staying abreast of the latest trends and addressing the evolving needs of their clients, they can differentiate themselves in this competitive landscape.

What will be the Size of the Data Center Market during the forecast period?

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The market continues to experience robust growth, driven by the increasing demand for IT infrastructure to support artificial intelligence, machine learning, internet of things (IoT), cloud computing, and edge computing applications. According to recent studies, The market is projected to reach a size of over USD200 billion by 2025, growing at a compound annual growth rate (CAGR) of over 10%. This expansion is fueled by the need for cost savings through cloud technology, real-time data processing, and the increasing importance of personalized data in industries such as online retail. Data center systems are becoming essential for businesses to manage their on-premises infrastructure and mitigate the risk of lost data.
The market is also witnessing a shift towards edge computing, which allows for data processing closer to the source, reducing latency and increasing efficiency. Overall, the market is a dynamic and evolving landscape, presenting significant opportunities for businesses seeking to leverage advanced IT infrastructure to gain a competitive edge.

How is this Data Center Industry segmented?

The data center industry 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.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular
  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers
  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4
  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  APAC

    China
    India
    Japan


  Europe

    France
    Germany
    Italy
    UK


  South America

    Brazil


  Middle East and Africa

    UAE


  Rest of World

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period.

A data center IT infrastructure encompasses all IT equipment, infrastructure, and solutions necessary for establishing or expanding a data center. This segment comprises server infrastructure, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. The increasing demand for computing power and storage to accommodate expanding data traffic drives the utilization of such IT infrastructure. Enterprise adoption of cloud technologies is accelerating, leading to the migration of data from on-premises infrastructure to cloud-based data centers. This trend is anticipated to persist throughout the forecast period, fueling the need for servers, storage infrastructure, and other IT equipment.

Data center IT infrastructure, encompassing server infrastructure, storage infrastructure, and network infrastructure, forms its core. Software-defined data centers and converged infrastructure enhance efficiency. Cloud technologies drive growth, complementing on-premises data cente

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.

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US Data Center Construction Market Size 2025-2029

The US data center construction market size is forecast to increase by USD 15.02 billion at a CAGR of 10.8% between 2024 and 2029.

The data center construction market In the US is experiencing significant growth due to the increasing number of data centers being built. This trend is driven by the rising demand for digital transformation and cloud computing services. Additionally, there is an increased focus on constructing eco-friendly data centers to reduce carbon footprint and comply with sustainability regulations. Edge computing and edge centers are gaining traction for their ability to reduce latency and enable data-driven decision-making.
However, the market also faces challenges such as cybersecurity issues, which are becoming increasingly complex and require advanced security measures to protect sensitive data. These factors are shaping the growth trajectory of the data center construction market In the US. The market is expected to witness strong growth In the coming years, as businesses continue to prioritize digital transformation and invest in secure and sustainable data center infrastructure.

What will be the Size of the market During the Forecast Period?

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The data center construction market in the United States continues to experience strong growth, driven by the increasing demand for advanced telecommunications infrastructure to support IT and telecommunications needs in various sectors. Electrical infrastructure, including UPS systems, and mechanical infrastructure, such as cooling systems, remain essential components of data center design. The proliferation of 5G networks, cloud-based services, edge data centers, and digitalization are key trends shaping the market.
Moreover, government and defense sectors, as well as telecommunication providers, are significant investors in data center construction. Security, physical damage prevention, and real-time data processing are critical considerations. The technology sector's ongoing evolution and the increasing importance of IT infrastructure in various industries are expected to fuel market growth.

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.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


End-user

  IT and telecom
  BFSI
  Government and defense
  Others


Type

  Electrical construction
  Mechanical construction
  General construction


Geography

  US

By Application Insights

The enterprise segment is estimated to witness significant growth during the forecast period.

In today's digital economy, enterprises across sectors including healthcare, finance, and IT are undergoing digital transformations to remain competitive. This transition involves the adoption of cloud computing, big data analytics, IoT devices, and artificial intelligence (AI), all of which necessitate advanced data center infrastructure. The increasing generation of digital data from sources such as social media, mobile devices, IoT sensors, and business applications is leading to unprecedented data volumes. To efficiently manage this data and derive valuable insights, enterprises require data centers with high-capacity storage and processing capabilities. The proliferation of hyperscale data centers, driven by big tech companies, is addressing this demand. Additionally, the growth of cloud adoption, remote working environments, and digitization further accelerates the need for advanced data center solutions. The National Science Foundation, AI Research Institutes, and colleges are also investing in AI algorithms, artificial intelligence accelerators, and cloud-based data storage to drive research and innovation.

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Market Dynamics

Our US Data Center Construction Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of US Data Center Construction Market?

Increasing number of data centers is the key driver of the market.

The data center construction market In the US is experiencing significant growth due to the increasing demand for digital services and infrastructure from various sectors. Cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) are driving this need for data centers, leading to the construction of both hyperscale and smaller edge data centers. Electrical infrastructure, including UPS systems

Global Data Center Services market size is expected to reach $151.47 billion by 2029 at 15.8%, segmented as by services, installation and integration services, training services, consulting services, maintenance and support, other services

The U.S. data center cooling market size will witness investments of USD 8.34 billion by 2029, growing at a CAGR of 11.65% during the forecast period.

The US Data Center Construction Market report segments the industry into Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Tier Type (Tier-I and -II, Tier-III, Tier-IV), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Five-year historic data and future forecasts are provided.

The North American data center market, currently experiencing robust growth, is projected to expand significantly over the forecast period (2025-2033). Driven by the increasing adoption of cloud computing, big data analytics, and the proliferation of internet-connected devices, the demand for data center infrastructure is surging. This demand is fueled by hyperscale companies requiring massive data center space for their operations, alongside a growing need for edge data centers to reduce latency and improve performance for applications requiring real-time responsiveness. The market is segmented by data center size (small, medium, mega, massive), tier type (Tier 1, Tier 2, Tier 3, Tier 4), and utilization (utilized, non-utilized), reflecting the diverse needs of various users across different industries. Key players like Equinix, Digital Realty, and Switch are strategically expanding their capacities and geographic reach to capitalize on this growth. The United States constitutes the largest market share within North America, followed by Canada and Mexico, with the Rest of North America exhibiting moderate growth potential. Factors like increasing energy costs and stringent regulations surrounding data center operations present challenges to market expansion. However, innovative cooling technologies and sustainable energy solutions are being actively adopted to mitigate these concerns. The continued investment in advanced technologies like artificial intelligence (AI) and machine learning (ML) further contributes to the market's expansion, creating a strong demand for high-performance computing resources accommodated by data center facilities. The market's segmentation also presents opportunities for specialized service providers to cater to niche needs, resulting in a competitive but dynamic landscape. The overall outlook for the North American data center market remains positive, driven by technological advancements and increasing digital transformation across various sectors. We project continued strong growth throughout the forecast period, albeit with a gradual moderation of the CAGR as the market matures. This comprehensive report provides an in-depth analysis of the North America data center industry, encompassing market size, growth trends, competitive landscape, and future outlook. Covering the period from 2019 to 2033, with 2025 as the base year, this report is an essential resource for industry professionals, investors, and strategic decision-makers. The report segments the market by country (United States, Canada, Mexico, Rest of North America), data center size (Small, Medium, Mega, Large, Massive), Tier type (Tier 1, Tier 2, Tier 3), and end-user (Other End User), offering granular insights into market dynamics. Key players like Equinix Inc, Digital Realty Trust Inc, and Switch are analyzed extensively. Recent developments include: January 2023: Construction has begun on a new facility for US data center operator EdgeCore Digital Infrastructure in Santa Clara, California. On the intersection of Juliet Lane and Laurelwood Road, the first of two planned data centers has officially begun construction, according to the business. The two-story SV01 will have 255,200 square feet of space and provide 36 Megawatts.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.

u.s. data center cooling market estimated size and share is anticipated to achieve usd 9.69 billion by 2032, with a forecasted cagr of 9.9% during the period.

The statistic shows the size of the data center UPS market in the United States in 2016 and 2024. In 2016, the small data center UPS market in the United States was valued at 740 million U.S. dollars.

Worldwide spending on data center systems is projected to reach over, 405 billion U.S. dollars in 2025, marking a significant 23 percent increase from 2024. This growth reflects the ongoing digital transformation across industries and the increasing demand for advanced computing capabilities. The surge in data center investments is closely tied to the rapid expansion of artificial intelligence technologies, particularly with the wake of generative AI. AI chips fuel market growth The rise in data center spending aligns with the booming AI chip market, which is expected to reach 92 billion U.S. dollars by 2025. Nvidia has emerged as a leader in this space, with its data center revenue skyrocketing due to the crucial role its GPUs play in training and running large language models like ChatGPT. The global GPU market, valued at 65 billion U.S. dollars in 2024, is a key driver of this growth, powering advancements in machine learning and deep learning applications. Semiconductor industry adapts to AI demands The broader semiconductor industry is also evolving to meet the demands of AI technologies. With global semiconductor revenues surpassing 526 billion U.S. dollars in 2023, the market is expected to approach 611 billion U.S. dollars in 2024. AI chips are becoming increasingly prevalent in servers, data centers and storage infrastructures. This trend is reflected in the data centers and storage semiconductor market, which is projected to grow from 78 billion U.S. dollars in 2023 to 136 billion U.S. dollars by 2025, driven by the development of image sensors and edge AI processors.

US Data Center Construction Market size was valued at USD 33.4 Billion in 2024 and is expected to reach USD 89.5 Billion by 2032, growing at a CAGR of 13.1% from 2025 to 2032.

Key Market Drivers

Growing Adoption of Cloud Computing: The growing adoption of cloud computing boosts the US data center construction market. As the popularity of cloud computing grows, so does the demand for data centers to support it. The United States accounts for a substantial percentage of the worldwide cloud computing market, which is expected to reach $1.3 trillion by 2025. Companies such as Amazon Web Services are making significant investments in data center infrastructure, including a $35 billion investment in Virginia alone between 2023 and 2024.

Growth in Data Generation: The growth in data generation will propel the U.S. data center construction market. As data creation increases, more storage infrastructure is required to keep up.

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.

United States (US) Modular Data Center Market is expected to grow during 2025-2031

U.S. Data Center Cooling Market will grow at a CAGR of 9.9% during the forecast period, with an estimated size and share crossing USD 9.69 billion by 2032.

According to Cognitive Market Research, the global Data Center Market size is USD 342514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 137005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 102754.26 million.
 Asia Pacific held the market of around 23% of the global revenue with a market size of USD 78778.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 17125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 6850.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The BFSI held the highest Data Center Market revenue share in 2024.

Market Dynamics of Data Center Market

Key Drivers for Data Center Market

Growing Environmental concerns are Pushing Data Center Operators to Adopt Renewable Energy Sources to Power their Facilities

Growing environmental concerns are compelling data center operators to embrace renewable energy sources for powering their facilities. This shift towards sustainability not only addresses carbon footprint concerns but also aligns with corporate social responsibility initiatives. By harnessing renewable energy such as solar, wind, or hydroelectric power, data centers can reduce their environmental impact while also potentially benefiting from cost savings in the long run. This commitment to renewable energy reflects a broader trend toward greener practices in the data center industry.

Exponential Growth in Cloud Services is Propelling Demand for Data Center Infrastructure Worldwide

The exponential growth of cloud services is a major driver propelling the demand for data center infrastructure worldwide. As businesses increasingly adopt cloud-based solutions for storage, computing, and networking needs, the demand for data centers to support these services surges. This trend is fueled by the scalability, flexibility, and cost-effectiveness offered by cloud computing, driving businesses to invest in robust data center infrastructure to meet the growing demands of digital transformation and data storage requirements.

Restraint Factor for the Data Center Market

Limited Availability of Skilled Workforce and Specialized Talent in the Data Center Industry Acts as a Restraint

Limited availability of skilled workforce and specialized talent in the data center industry presents a significant challenge for companies operating in this sector. The complex nature of data center operations requires personnel with specific expertise in areas such as network engineering, systems administration, and cybersecurity. However, the demand for such professionals often outstrips the available supply, leading to difficulties in recruiting and retaining qualified staff. This scarcity of talent can hinder companies' ability to manage and optimize their data center operations effectively, impacting overall performance and competitiveness.

Key Opportunity of Data Center market

Growing Emphasis on Adoption of Hybrid and Multi-Cloud Strategies can be an opportunity.

The market for data centers is also changing perpetually with the help of new technologies, evolving businesses, and emerging industry needs. Organizations are increasingly moving towards hybrid and multi-cloud models to take advantage of the offerings of public cloud infrastructure, private cloud systems, and on premise infrastructure. This is fueling demand for interconnection platforms, colocation facilities, and hybrid cloud management solutions that provide seamless integration, workload mobility, and data portability among different cloud environments. In addition, prefabricated and modular data center solutions are becoming increasingly popular because they offer flexibility, scalability, and speed of deployment. These pre-fabricated modules can be easily assembled and deployed to accommodate changing capacity needs, improve operational efficiency over brick-and-mortar-style faciliti...

The United States Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server) and by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

In 2021, Equinix held approximately 11 percent of the market share of data centers. In total, the fifteen largest data center colocation providers own roughly half of the market, which amounts to 54 billion U.S. dollars in total. Data centers are facilities that centralize an organization's information technology equipment and operations.

The global data center market size reached USD 213.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 494.5 Billion by 2033, exhibiting a growth rate (CAGR) of 9.29% during 2025-2033. The market demand for cloud services, data storage solutions, and edge computing is the primary driver of growth. Moreover, the market forecast indicates constant growth, supported by amplifying digital transformation, IoT adoption, and the expansion of energy-efficient and sustainable data center infrastructure globally.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, type, enterprise size, and end user.