U.S. Data Center Market by Infrastructure(Hardware, Software, Services), by Type(Enterprise Data Centers, and others), by Data Center Rating(Tier I, and others), by Size(Small Data Centers, and others), by Server Rack Density(<10kW, and others), by Data Center Redundancy(N+1, and others), by PUE Outlook(Less than 1.2, and others), by Design Outlook(Traditional, and others), by End User(Cloud Service Provider and others) – Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 02-Jun-2025 | No of Pages: 173 | No. of Tables: 134 | No. of Figures: 79 | Format: PDF | Report Code : IC2420
US Tariff Impact on U.S. Data Center Market
Trump Tariffs Are Reshaping Global Business
U.S. Data Center Market Overview
The U.S. Data Center Market size was valued at USD 103.27 billion in 2023, and is predicted to reach USD 158.55 billion by 2030, at a CAGR of 6.3% from 2024 to 2030. The data center market, also referred to as the network infrastructure market, encompasses the planning, construction, operation, and upkeep of specialized infrastructure dedicated to hosting computing systems. It comprises various components such as servers, storage systems, and networking gear, providing services such as cloud computing and connectivity solutions. Presently, the industry is witnessing widespread adoption of cloud services, alongside the emergence of edge computing to minimize latency.
Key trends include an emphasis on sustainability, heightened cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the influence of 5G networks. These trends underscore the industry's response to the growing demand for scalable, efficient, and secure data processing and storage solutions in the era of digital transformation. According to the United States International Trade Commission, the data processing and storage market is projected to expand from USD 56 billion in 2020 to USD 90 billion by 2025.
Geographic Distribution and Market Dominance Propels the U.S. Data Center Market Growth
In the US, over 5,300 data centers are strategically distributed across the country. Northern California, in particular, serves as a hub for data-intensive companies, including Google, Facebook, Uber, Twitter, and Yelp. This widespread distribution of the market reflects the extensive integration of data into the US economy and the influence of cost-effective energy in various regions. Interestingly, the top 10 market locations account for less than 40% of all US market growth, highlighting the extensive geographic spread, with nearly every state hosting at least one facility. The industry is dominated by major operators such as Lumen Technology, Verizon, Digital Realty, AT&T, and Equinix, that collectively comprise 25.9% of all US market growth.
Additionally, a PwC report commissioned by the Data Center Coalition (DCC) revealed that the market growth contributed USD 2.1 trillion to the US GDP between 2017 and 2021. According to CloudScene, an Australian-based data intelligence firm, the US hosts 5,389 network infrastructure, significantly more than the UK's 512.
Investment and Expansion by Major Companies Fuels the U.S. Data Center Market Growth
The growing investment by major companies to expand their data centers across the US is fueling market demand. For instance, Amazon Web Services (AWS) invested USD 35 billion in new network infrastructure in Virginia, demonstrating a strong commitment to cloud expansion despite broader layoffs at Amazon.
This strategic move aims to create 1,000 jobs and strengthen AWS's long-term position in the cloud computing market. Such substantial investments underscore the importance of the market trends in supporting the digital economy and highlight the ongoing expansion and innovation within the industry.
High Initial Investment Hinders the Growth of the Market
The data center market faces significant obstacles, notably the substantial upfront investment required and strict environmental regulations. Establishing and maintaining network infrastructure demands considerable financial commitments upfront, posing barriers for smaller enterprises and startups. Moreover, ongoing compliance with environmental standards necessitates continual investments in energy-efficient technologies hinders the overall U.S. data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing into the market operations presents compelling prospects for the industry's advancement. By minimizing latency and enabling real-time processing, edge computing supports applications such as Internet of Things (IoT) and Augmented Reality (AR), alleviating pressure on centralized cloud data centers while providing scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, paving the way for diverse opportunities for network infrastructure providers.
Recent investments in startups such as Armada signify the burgeoning interest in edge computing solutions, indicative of a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key market players operating in the U.S. data center industry include IBM Corporation, Amazon Web Services, Inc, Microsoft Corporation, Cisco Systems, Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Development LP, Broadcom Inc., EdgeConneX Inc., TierPoint, LLC, Digital Realty Trust, Equinix, Inc., Flexential Corporation, CloudHQ, QTS Realty Trust, LLC.
U.S. Data Center Market Key Segments
By Infrastructure
-
Hardware
-
IT Hardware
-
Servers
-
Storage Systems
-
Networking Equipment
-
-
Power Infrastructure Hardware
-
Uninterruptible Power Supplies (UPS)
-
Generators
-
Automatic Transfer Switches
-
Power Distribution Units (PDUs)
-
-
Mechanical Infrastructure Hardware
-
Computer-Room Air Conditioners (CRAC/CRA Units)
-
Chillers
-
Racks
-
Cable Management Systems
-
-
Safety & Security Hardware
-
Fire Suppression Systems
-
Physical Security Systems (CCTV, access controls)
-
-
-
Software
-
DCIM & Monitoring
-
Automation & Orchestration
-
Backup & Disaster Recovery
-
Security Software
-
Virtualization Software
-
Analytics & Reporting Software
-
Other Software
-
-
Services
-
Planning & Professional Services
-
Site & Building Design
-
System/Infrastructure Engineering
-
Professional Advisory (compliance, energy audits)
-
-
Integration & Deployment Services
-
Electrical & Mechanical Installation
-
Commissioning & Acceptance Testing
-
-
Operation & Support Services
-
Preventive & Corrective Maintenance
-
Facilities Management / Remote Monitoring
-
Support Services (helpdesk, onsite SLA support)
-
-
Hosting & Managed Services
-
Colocation & Cloud Hosting Services
-
Virtual/Private Hosting Platforms
-
-
By Type
-
Enterprise Data Centers
-
Colocation Data Centers
-
Cloud Data Centers
-
Hyperscale Data Centers
-
Edge Data Centers
-
Micro Data Centers
-
Others
By Data Center Rating
-
Tier I
-
Tier II
-
Tier III
-
Tier IV
By Size
-
Small Data Centers
-
Med-sized Data Centers
-
Large Data Centers
By Server Rack Density
-
<10kW
-
10-19kW
-
20-29kW
-
30-39kW
-
40-49kW
-
>50kW
By Data Center Redundancy
-
N+1
-
2N
-
N+2
-
N
By PUE Outlook
-
Less than 1.2
-
1.2 - 1.5
-
1.5 - 2.0
-
Greater than 2.0
By Design Outlook
-
Traditional
-
Containerized
-
Modular
By End User
-
Cloud Service Provider
-
Technology Provider
-
Telecom
-
Healthcare
-
BFSI
-
Retail & E-commerce
-
Entertainment & Media
-
Government
-
Energy
-
Others
Key Players
-
IBM Corporation
-
Amazon Web Services, Inc
-
Microsoft Corporation
-
Cisco Systems, Inc.
-
Oracle Corporation
-
SAP SE
-
Hewlett Packard Enterprise Development LP
-
Broadcom Inc.
-
EdgeConneX Inc.
-
TierPoint, LLC
-
Digital Realty Trust
-
Equinix, Inc.
-
Flexential Corporation
-
CloudHQ
-
QTS Realty Trust, LLC
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 103.27 Billion |
|
Revenue Forecast in 2030 |
USD 158.55 Billion |
|
Growth Rate |
CAGR of 6.3% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
At Next Move Strategy Consulting, we understand that insightful market research is the cornerstone of successful business decisions. That's why we employ a robust and multifaceted approach, combining various methodologies to deliver the most accurate and actionable data for our clients.
Research Landscape
We navigate the world of research with two primary approaches:
Qualitative Approach
Our qualitative research methodologies involve immersive techniques such as in-depth interviews, focus groups, and observational studies. By engaging directly with individuals and stakeholders, we uncover valuable insights that quantitative data alone may overlook.
Quantitative Research
In tandem with qualitative methodologies, NMSC leverages the power of Quantitative Research to provide a robust foundation of numerical insights. Through systematic data collection and analysis, we quantify patterns, preferences, and market trends, offering a comprehensive view of the business landscape.
Our quantitative research approach employs diverse tools, including surveys, experiments, and statistical modelling. These methodologies enable us to gather data from a large and representative sample, ensuring the statistical significance of our findings. By employing structured questionnaires and standardized data collection methods, we guarantee the reliability and validity of the information we present to our clients.
Quantitative research is particularly effective in measuring the prevalence of trends, assessing market size, and gauging the impact of various factors on consumer behavior. The numerical precision attained through this approach equips our clients with actionable insights, facilitating data-driven decision-making and strategy formulation.
Our Specialized Toolbox for Industry-Specific Market Research
We deploy a specialized arsenal of techniques tailored to meet your unique requirements. Here's a glimpse into our comprehensive toolbox:
Information Procurement
The stage entails acquiring market data or relevant information through various sources and methodologies.
Market Research Approach
We utilize both top-down and bottom-up approaches in market research analysis to achieve a comprehensive understanding of the market dynamics, leveraging the broad perspective of industry trends and macroeconomic factors alongside detailed insights from specific segments and individual companies.
Porters Five Forces Analysis
We conduct Porter's Five Forces analysis to evaluate the competitive landscape of an industry, providing us with insights into factors that affect profitability and strategic positioning.
SWOT Analysis
We conduct SWOT analysis to understand market trends, identify potential threats, capitalize on opportunities, and assess our strengths and weaknesses.
Forecasting
We utilize a forecasting model to predict future consumption by considering parameters like population, economics, regulations, market competition, drivers, constraints, technology, and pricing. We also employ statistical techniques such as multilinear regression, exponential smoothing, moving average, ARIMA, and Monte Carlo simulations for accurate predictions. In econometric forecasting, we analyzed short-term and long-term event impacts, attributing values based on regulatory frameworks, economic factors, and market events.
Frequently Asked Questions
Speak to Our Analyst
Related Report
Related Blogs
How Collaborative Robots are Shaping Warehouse Operations
Collaborative robots are used in warehouse operations to revolutionize supply ch...
How Kion, Honeywell, & ABB Lead Warehouse Automation Trends
Next Move Strategy Consulting forecasts that the Warehouse Automation Market wil...
Who’s Leading in Robot Vacuums? Top 10 Innovators Revealed
Next Move Strategy Consulting states that the global robot vacuum cleaner market...
