According to Arizton’s latest research report, the U.S. data center market growing at a CAGR of 6.78% during 2024-2030.
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Report Summary
Market Size by Investment (2030): USD 308.83 Billion
Market Size by Investment (2024): USD 208.38 Billion
CAGR By Investment (2024-2030): 6.78%
Market Size – Area (2030): 35.37 Million Square Feet
Power Capacity (2030): 8,874 MW
Historic Year: 2021-2023
Base Year: 2024
Market Segmentation: Facility Type, Infrastructure, It Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standard, and Geography
Largest Region By Investment: South-Eastern U.S.
Fastest Growing Region By Investment: North-Eastern U.S.
Geographical Analysis: South-Eastern U.S., South-Western U.S., Western U.S., Mid-Western U.S., And North-Eastern U.S.
Market Overview
The U.S. data center market is entering a phase of rapid growth, largely fueled by the rising demand for AI workloads. This surge is prompting major expansions by hyperscale cloud providers, internet service companies, and AI-driven enterprises. Both colocation and self-built data centers are expected to grow steadily between 2025 and 2030, as the need for advanced computing infrastructure continues to rise.
As power availability becomes a critical factor, the market is witnessing a shift from Tier 2 to Tier 3 cities areas that offer better access to the gigawatt-scale capacity needed to support large-scale campuses. In April 2025, the U.S. Department of Energy (DOE) identified 16 potential sites that could support AI-focused data center development, highlighting the growing national focus on meeting energy demands. However, power constraints remain a key challenge. Leading data center hubs, including Virginia, are not expected to see major grid expansions until 2027 or later. Many new data center projects are currently waiting for grid connections, which will play a pivotal role in shaping market growth over the next five years.The industry is also seeing increased momentum through mergers, acquisitions, and joint ventures among major players an ongoing trend that is reshaping the data center construction landscape and accelerating market development.
AI Transforming the Landscape of the Data Center Market
Artificial Intelligence (AI) played a transformative role in the U.S. data center market in 2024, contributing to over 50% of the market’s growth. The year witnessed a significant power capacity addition exceeding 4.5 GW, driven by both colocation providers and hyperscale self-built facilities. The rapid rise of AI technologies spearheaded by innovations like OpenAI’s ChatGPT has elevated AI from a supportive function to a central force reshaping the data center landscape. Despite this surge, AI adoption across industries remains in its infancy; according to the U.S. Census Bureau, only 3.8% of businesses had integrated AI into production processes as of 2024. However, this figure is expected to surge dramatically over the next five years. Further accelerating this shift, OpenAI expanded its data center footprint in October 2024 through strategic collaborations with Oracle and the development of new facilities in Texas. Alongside OpenAI, hyperscale cloud service providers and GPU as a service vendors are also ramping up their infrastructure investments, signaling a robust and AI-driven evolution of the data center market.
Recent developments
In September 2024, Google announced the signing of PPAs to acquire solar energy in Nebraska and Texas, with the carbon removal deal in Brazil. In collaboration with the Omaha Public Power District, Google secured an agreement with NextEra Energy to source carbon-free energy from the 420MW Pierce County Energy Center in Nebraska, set tobecome operational in 2027.
In FY 2025, Microsoft is expected to spend $80 billion to build out AI data centers to runAI training models as well as its cloud operators worldwide.
In March 2025, Crypto and AI data center company IREN announced its plans to develop a 75 MW AI data center in Texas. They are planning to deploy a new 75 MW liquid-cooling data center for AI/High-performance computing at its Childress site in Texas. It will be designed to support 200 kW per rack via direct-to-chip cooling for NVIDIA’s Blackwell GPUs.
Mergers and Joint Ventures Drive U.S. Data Center Growth
The U.S. data center market is growing rapidly, supported by an increase in mergers, acquisitions (M&A), and joint ventures (JVs). These strategic moves are helping companies expand their capacity and keep up with the rising demand for digital infrastructure. As part of this trend, Langan Engineering & Environmental Services recently acquired Navix Engineering, a civil engineering firm with experience in data center projects across many U.S. states. In another development, IQ Fiber, a Florida-based internet provider, acquired ThinkBig Networks LLC, with support from equity funding by SDC Capital Partners, strengthening its fiber network reach.Additionally, TECfusions secured a $300 million loan to expand its data center in Clarksville, Virginia. With $160 million already iallocated, the funding will help complete the first phase of the project, increasing the facility’s power capacity to 37.5MW. These partnerships and investments reflect the industry’s focus on building scalable, high-performance data centers to support the growing needs of businesses and technology platforms.
Regional Insights Shaping the Future of U.S. Data Centers
The U.S. data center market is witnessing dynamic growth across various regions, each contributing uniquely to the industry’s expansion. The Southeastern U.S. is projected to lead in power capacity by 2030, driven by increasing investments and infrastructure development. Virginia continues to dominate hyperscale activity, attracting major players like Microsoft, AWS, and Google. In the Midwest, states such as Illinois, Iowa, and Ohio are leveraging tax incentives to boost data center investments. Meanwhile, Texas and Arizona stand out in the Southwest, accounting for the majority of regional investments, with growing interest from colocation, hyperscale, and bitcoin operators. The Western region is also seeing strong momentum, especially in Oregon, California, and Utah, fueled by hyperscale developments. Additionally, the New York-New Jersey area remains a critical data center hub, with high demand and low vacancy rates reinforcing its role in the nation’s digital infrastructure.
The Report Includes the Investment in the Following Areas:
Market Segmentation & Forecast
Hyperscale Data Centers
Colocation Data Centers
Enterprise Data Centers
Infrastructure
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
Segmentation by IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Segmentation by Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgear
Power Distribution Units
Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Segmentation by Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers, and Dry Coolers
Other Cooling Units
Segmentation by Cooling Techniques
Air-based
Liquid-based
Segmentation by General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Physical Security
Fire Detection & Suppression
DCIM/BMS
Segmentation by Tier Standard
Tier I & II
Tier III
Tier IV
Segmentation by Geography
The U.S.
South-Eastern U.S.
South-Western U.S.
Western U.S.
Mid-Western U.S.
North-Eastern U.S.
Vendor Landscape
IT Infrastructure Provider
Arista Networks
Atos
Broadcom
Cisco Systems
DataDirect Networks (DDN)
Dell Technologies
Extreme Networks
Fujitsu
Hewlett Packard Enterprise
Hitachi Vantara,
IBM
Infortrend Technology
Inspur
Intel
Lenovo
Micron Technology
MiTAC Holdings
NetApp
Nimbus Data
NVIDIA
Oracle
Pure Storage
Quanta Cloud Technology
QNAP Systems
Quantum
Seagate Technology
Silk
Super Micro Computer
Synology
Toshiba
Western Digital
Wiwynn
Hon Hai Technology Group (Foxconn)
Data Center Support Infrastructure Providers
ABB
Caterpillar
Cummins
Delta Electronics
Eaton
Legrand
Rolls-Royce
Schneider Electric
STULZ
Vertiv
Other Data Center Support Infrastructure Providers
Airedale
Alfa Laval
Asetek
Bloom Energy
Carrier
Condair
Cormant
Cyber Power Systems
Enlogic
FNT Software
Generac Power Systems
Green Revolution Cooling (GRC)
HITEC Power Protection
Johnson Controls
KOHLER (Rehlko)
KyotoCooling
Mitsubishi Electric
Natron Energy
NetZoom
Nlyte Software
Rittal
Siemens
Trane
ZincFive,
HIMOINSA (Yanmar)
Data Center Construction Contractors
AECOM
Ames Construction
Arup
Barge Design Solutions
Burns & McDonnell
Corgan
DPR Construction
Fortis Construction
Haydon
Holder Construction
Jacobs
KDC
Kiewit Corporation
Lewis Michael Consultants
Morgan Construction
Morgan Corp
Page
Rogers-O’Brien Construction
Rosendin Electric
Syska Hennessy Group
Turner Construction
Other Data Center Construction Contractors
AlfaTech
Black & Veatch
BlueScope Construction
Brasfield & Gorrie
CallisonRTKL
Clark Construction Group
Clayco
Climatec
Clune Construction
EMCOR Group
EYP MCF
Fitzpatrick Architects
Fluor Corporation
Gensler
Gilbane Building Company
Gray
HDR
Hensel Phelps
HITT Contracting
Hoffman Construction
JE Dunn Construction
JHET Architects,
kW Engineering
Walbridge
WSP
Linesight,
M+W Group (Exyte)
McCarthy Building Companies
Morrison Hershfield
Mortenson
Pepper Construction
Rosendin
Ryan Companies
Salute Mission Critical
Sheehan Nagle Hartray Architects
Skanska
Southland Industries
Sturgeon Electric Company
Structure Tone
Suffolk Construction
Sundt Construction
The Mulhern Group
The Walsh Group
The Weitz Company
TRINITY Group Construction
Data Center Investors
Apple
Applied Digital
AWS
CyrusOne
DataBank
Digital Realty
Equinix
Google
Meta (Facebook)
Microsoft
NTT DATA
Aligned Data Centers
American Tower
AUBix
CloudHQ
Cologix
Compass Datacenters
COPT Data Center Solutions
CoreSite
Core Scientific
DartPoints
DC BLOX
DigiPower X
Edge Centres
EdgeConneX
EdgeCore Digital Infrastructure
Element Critical
Evoque
Flexential
fifteenfortyseven Critical Systems Realty (1547)
H5 Data Centers
HostDime
Hut 8
Iron Mountain
Netrality Data Centres
Novva Data Centers
PhoenixNAP
PowerHouse Data Centers
Prime Data Centers
Sabey Data Centers
QTS Realty Trust
Skybox Datacenters
Stream Data Centers,
STACK Infrastructure
Switch
T5 Data Centers
TierPoint
Vantage Data Centers
Yondr
365 Data Centers
5C Data Centers
New Entrants
Ardent Data Centers
Colovore
CloudBurst Data Centers,
Crane Data Centers,
Edged Energy
NE Edge
Prometheus Hyperscale
Quantum Loophole
Rowan Digital Infrastructure
Tract
In a nutshell, the Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the U.S. data center market. Request for Free Sample to get a glance of the report now: https://www.arizton.com/market-reports/us-data-center-market-analysis
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Key Questions Answered in the Report:
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