by The United States data center market has witnessed significant growth in recent years due to growing adoption of cloud-based services among enterprises. Data centers are facilities that house computer systems and associated components such as telecommunications and storage systems. They are widely used by organizations to process, store, and manage large amounts of data. Key components of data centers include servers, storage, networking devices, power infrastructure, and cooling systems. The data center industry provides facilities, infrastructure, and support services that are essential for businesses to store and process data securely and reliably.
According to estimates, the United States data center market is expected to be valued at US$ 64 billion in 2024 and exhibit a CAGR of 14% over the forecast period.
The growing adoption of cloud-based services has boosted the need for data centers in the country. Cloud computing offers various benefits such as scalability, flexibility and reduced costs which has accelerated its adoption among organizations. The shift towards remote working due to COVID-19 pandemic has further increased dependency on cloud-based applications and services. As more data gets generated through various connected devices, there is a growing need for robust data storage infrastructure which is driving investments in new data center construction and capacity expansion projects. Key players are focusing on developing hyperscale data center facilities with high power capacity and redundant components to ensure maximum uptime.
Key Takeaways
Key players operating in the United States Data Center Market Size are Amazon Web Services, Microsoft Azure, Google Cloud, IBM Cloud, and Oracle Cloud Infrastructure. These leading cloud service providers are investing heavily in building new data center facilities across the country. For instance, in 2021 Amazon Web Services announced plans to open data center regions in Salt Lake City and New York City.
The growing adoption of cloud-based applications and services among enterprises has boosted the demand for data center infrastructure significantly. Various industries such as IT, telecom, BFSI, healthcare and retail are increasingly leveraging cloud-based solutions. This is driving the need for additional data storage capacities among cloud providers.
Major data center operators are expanding their presence globally to cater to the growing demand from international clients. Key players are constructing new data center campuses in different countries and regions to deliver cloud services with low latency. The United States remains one of the largest and most attractive markets for hyperscale data center development due to strong cloud adoption. However, operators are also focusing on other high growth regions for global expansion.
Market Key Trends
One of the key trends gaining traction in the United States data center market is the increasing focus on renewable energy sources for powering infrastructure. With growing energy consumption of data centers, operators are looking to procure power from solar, wind and other green sources to achieve sustainability goals and reduce costs. They are partnering with renewable energy developers to set up dedicated power plants to fulfil their electricity needs through clean resources. Server virtualization is another trend that is helping operators improve infrastructure utilization and optimize costs. The adoption of advanced cooling systems such as immersion cooling is also on the rise to boost energy efficiency of data centers. Overall, the market is expected to continue growing rapidly due to the strong demand for digital transformation and cloud services across industry verticals.
Porter’s Analysis
Threat of new entrants: High infrastructure and capital investments pose big entry barriers for new players in this market.
Bargaining power of buyers: Large data center operators have higher bargaining power against IT infrastructure providers due to bulk procurement.
Bargaining power of suppliers: Key IT infrastructure providers hold strong positions whereas local contractors face stiff competition.
Threat of new substitutes: Emerging edge computing poses potential threat but core data center infrastructure continues to grow rapidly.
Competitive rivalry: Intense competition exists among leading data center operators to attract new businesses with capacity expansion and service enhancements.
Geographical Regions
The majority of the United States Data Center Market Size and Trends revenue comes from three regions – California, Texas, and New Jersey. California alone contributes over 20% of the total market value owing to strong concentrations of technology companies in Silicon Valley and greater Los Angeles area.
Fastest growing geographical region in the U.S. data center market is South Central led by Texas. The Lone Star state offers cheap electricity, space for expansion and a moderate climate which attracts hyperscale facilities. Dallas and Houston are emerging as significant secondary data center hubs complementing existing leaders in Northern Virginia and San Francisco Bay Area.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
