The United States data center market comprises data centers that are owned, operated, or leased by various companies and organizations in the United States to house their critical applications and data storage needs. Data centers provide storage, computational power, and connectivity on-demand to applications residing in data centers. They enable businesses to consolidate dispersed compute and storage infrastructure into an centralized and efficiently managed dedicated facility. The need for data centers has been rising with increasing digital transformation across various industries in the country owing to advantages such as enhanced data management capabilities, streamlined data access for users & applications globally, reduced IT infrastructure and maintenance costs and improved business agility.
The Global United States data center market is estimated to be valued at US$ 63 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the United States data center market are Equinix, Digital Realty, NTT Communications, CoreSite, CyrusOne.
The increasing investments by hyperscale data center operators such as Amazon Web Services, Microsoft Azure, Google Cloud and IBM Cloud in the region present key opportunities in the market. The entry of these global operators is intensifying the competition in the market.
North America, particularly the United States, has emerged as a major hub for data center development owing to the large volume of data traffic generated in the country and high demand for local data storage and processing.
Market drivers
The supportive government initiatives to develop local data storage infrastructure and address privacy concerns is a key driver propelling the growth of United States Data Center Market Size. The enactment of regulations like Cloud Act has boosted investments to build locally based centers and infrastructure to address data sovereignty issues. Furthermore, initiatives around smart cities and intelligent transportation are generating massive amount of data, driving the need for advanced data center facilities.
PEST Analysis
Political: Data privacy and security regulations implemented in the US affects operations of data center providers. Regulations like Health Insurance Portability and Accountability Act and Payment Card Industry Data Security Standard mandate high security standards.
Economic: Economic growth in the US positively impacts businesses to increase their IT infrastructure investments and adopt cloud services housed in data centers. Decline in costs of hardware and cheaper electricity rates fuel market growth.
Social: Widespread internet and smartphone penetration, along with rising mobile data usage encourages content providers to store and process data locally using data centers. Growth of social media and streaming further increases the need for data infrastructure.
Technological: Adoption of cutting-edge technologies like artificial intelligence, 5G, and Internet of Things by businesses drives the need for addition of advanced United States Data Center Market Size and Trends capacity with high-density infrastructure to handle massive data workloads and real-time analytics in the long run. Technological advancements also help improve efficiencies of data center facilities.
The Data Center Market in the United States is concentrated majorly in a few states like California, Texas, New Jersey, Illinois and Washington in terms of value. California leads as the state with highest concentration of enterprise-class data centers owing to the presence of key technology companies. Meanwhile, the South region of the United States consisting of states like Virginia and North Carolina is witnessing fastest growth in the data center market due to low power costs, tax incentives for data center development and favourable climate.
Get More Insights On- United States Data Center Market
About Author:
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, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)