Powering the Digital Future: Growth and Trends in the United States Data Center Market (2025–2030)

 The United States data center market is projected to reach a capacity of 20.39 thousand megawatts (MW) in 2025 and is expected to grow to 26.12 thousand MW by 2030, reflecting a compound annual growth rate (CAGR) of 5.08% over the forecast period. In terms of colocation revenue, the market is anticipated to generate USD 24,036.4 million in 2025 and is forecasted to reach USD 38,675.3 million by 2030, registering a CAGR of 9.98% between 2025 and 2030. 

 Key Market Trends 

Power & Cooling Innovations 

  • Liquid cooling is being rapidly adopted—expected growth ~167% by 2030, driven by GPU-intensive AI workloads  

  • Investments in power infrastructure surged ~96% from 2023‑24, and ~88.5% are forecast through 2030 

  • There’s growing interest in sustainable backup options (e.g. microgrids, nuclear/SMRs) to support rising grid demands. 

Hyperscale Expansion & Edge Deployment 

  • Hyperscale's (AWS, Google, Microsoft, Meta, Apple) now account for over 40% of investment 

  • Hyperscale capacity in Virginia soared in 2024; Texas and Arizona lead Southwest investments. Edge data centers are on track to grow at ~20% CAGR through 2035 

Low Vacancies & Rising Rents 

  • Colocation vacancies in prime markets are <1% (NV, Dallas/Fort Worth, Las Vegas, Boston) 

  • Hyperscale tenants are driving rent growth (~19% increase in early 2024), giving landlords stronger pricing power. 

 Sustainability & Environmental Pressure 

  • New U.S. data centers are consuming massive energy and water—estimated to account for ~4% of national electricity, with 56 % from fossil fuels. 

  • Health and environmental costs from fossil-curtailed grid expansion are projected at $5.7–9.2 billion/year. 

  • Community pushback is intensifying (e.g., in Northern Virginia and Ohio) over noise, water stress, and poor employment outcomes. 

 

Market Segmentation 

Segmentation by Tier & Size 

  • Tier 3 Data Centers: Serve most U.S. enterprises, offering redundancy with dual-powered systems; 399 operational, 73 under construction (2022) 

  • Tier 4 Data Centers: Preferred by large enterprises for highest uptime (99.995%), gaining prominence 

  • Mega Data Centers: Represent ~38% of market capacity in 2024, driven by hyperscale and social media demands 

 

Geographic Hotspots 

  • Northern Virginia: Largest U.S. market (~14% share in 2024); benefits from tax incentives, reliable power, massive fiber infrastructure 

  • Phoenix: Fastest-growing market (~19% CAGR from 2024–2029); draws investment with low power costs, tax breaks, fiber deployment 

  • Chicago, Dallas, Atlanta: Valued for deregulated power markets, competitive pricing, and strong interconnectivity 

 

Market Drivers & Challenges 

Growth Drivers 

  • Explosive adoption of cloud, AI/ML, big data, and edge services 

  • “AI land‑grab” fueling unprecedented capex—estimates include $320 billion in 2025 alone. 

  • J.P. Morgan projects data center investments may boost U.S. GDP by 0.1–0.3% in 2024 and 10–20 bps in 2025–26 

Key Challenges 

  • Massive energy and water consumption stress the local infrastructure and the environment 

  • Regulatory backlash on tax incentives, noise, pollution, and limited employment benefits results in delays, supply chain issues, grid constraints, shortened ability to meet demand. 

  • Sustainability demands pushing a shift toward renewables, nuclear, and green power solutions  

 

Hyperscale & Enterprise Providers 

  • Google LLC 
     A leading hyperscale operator with a widespread network of cloud and AI-optimized facilities across the U.S.  

  • Microsoft Corporation 
     Major player in both cloud and AI data center deployments, consistently expanding capacity via Azure regions nationwide.  

  • Amazon Web Services Inc. (AWS) 
     The largest single cloud provider, AWS drives massive data center growth through its global infrastructure and digital services platform.  

 

Colocation & Real Estate Specialists 

  • Digital Realty Trust Inc. 
     One of the largest colocation REITs, operating over 300 data centers across 25 countries, focusing heavily on enterprise connectivity.  

  • Equinix Inc. 
     A global network and colocation giant, often topping the market with ~13% share; excels in carrier-neutral interconnection hubs.  

  • CyrusOne 
     A significant multi-tenant (colocation) provider, especially in key U.S. data center hubs. 

  • NTT Communications / NTT Ltd. 
     From Japan-based NTT, serving global and U.S. enterprise customers in both hyperscale and colocation segments.  

  • Digital Realty (CoreSite via American Tower) 
     Operating hyperscale and colocation assets under brands like CoreSite, primarily through Digital Realty’s platforms.  

 

Infrastructure & Construction Players 

  • Vantage Data Centers 
     Rapidly expanding with multiple “mega data center” campuses and large IT load deployments, especially in Phoenix and Virginia.  

  • Quality Technology Services (QTS) 
     Carrier-neutral colocation provider with major campuses in Northern Virginia, Chicago, Phoenixx and beyond. Member of the global renewable energy initiative RE100. Acquired by Blackstone in 2021.  

  • Stack Infrastructure 
     Developer of large-scale data center campuses, especially active in Phoenix and Northern Virginia markets.  

 

 Power, Cooling & IT Equipment Vendors 

  • Cisco Systems, Inc. 
     Major provider of networking equipment, data center switches, and routing infrastructure—key to connectivity operations. Present in both networking and power segments.  

  • Schneider Electric SE 
     Global leader in power distribution, rack systems, and cooling solutions for data centers.  

  • Vertiv Holdings Co 
     Specialist in mission-critical infrastructure like UPS systems, cooling, and data center management platforms.  

  • Eaton Corporation plc 
     Provides essential power-management and rack solutions for data centers. Prominent in rack and PDU markets.  

  • ABB Ltd. 
     Supplies industrial power and automation systems critical for large-scale data center operations. 

 

Conclusion 

The U.S. data center market stands at a pivotal moment—propelled by AI-fueled demand, hyperscale growth, and a shift toward edge and high-performance compute. Market dynamics favor landlords as capacity tightens and rents climb. Yet, the unchecked expansion of data centers also brings significant strains: environmental impacts, infrastructure stress, and local opposition highlight the imperative for greener, community-aligned strategies. The future belongs to operators who can balance speed with sustainability—embracing liquid cooling, renewable or nuclear energy, intelligent site planning, and transparent stakeholder engagement. 

 

For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/united-states-data-center-market?utm_source=blogger 

 

About Mordor Intelligence:  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. 

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

For any inquiries or to access the full report, please contact: 

media@mordorintelligence.com  
https://www.mordorintelligence.com/ 

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