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U.S Data Center Market Size Worth $96 Billion By 2028: IndustryARC

Apr 11, 2024 7:00 PM ET

U.S Data Center Market Size Worth $96 Billion By 2028: IndustryARC

The U.S Data Center Market size is predicted to reach $96 billion by 2028, growing at a CAGR of 6.15% during the forecast period 2023-2028 according to the latest market research report published by IndustryARC. Increasing demand for digital infrastructure, rising data consumption and online services and technological advancements and innovations are propelling the U.S Data Center Market growth, finds IndustryARC in its recent report, titled “U.S Data Center Market Size, Share & Trends Analysis Report By Provider Type (Enterprise, Colocation Provider, Cloud Service Provider, Edge Data Center, Hyperscale Data Center, Micro Data Center, Container Data Center), By Data Center Size (Small Data Center, Medium Data Center, Large Data Center), By Tier Standards (Tier 1, Tier 2, Tier 3, Tier 4)”

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U.S Data Center Market 2023-2028: Segmentation

By Provider Type

  • Enterprise
  • Colocation Provider
  • Cloud Service Provider
  • Edge Data Center
  • Hyperscale Data Center
  • Micro Data Center
  • Container Data Center

By Data Center Size

  • Small Data Center
  • Medium Data Center
  • Large Data Center

By Tier Standards

  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

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U.S Data Center Market Report – Key Takeaways:

  • Tier 3 Segment Dominating the Market

The Tier 3 segment held the largest market valuation of 43% in 2022. In the landscape of the U.S. Data Center Market, the Tier 3 segment holds sway, commanding the majority market share. This dominance primarily stems from its optimal balance between cost and availability, offering enhanced reliability among data centers. Its strategic positioning caters to the robust requirements of businesses, ensuring a dependable infrastructure. The Tier 3 segment’s prevalence underscores its pivotal role in shaping and leading the competitive market during the forecast period.

  • Small Data Center to Register Highest Growth

Small Data Center is analyzed to grow with the highest CAGR of 6.84% during the forecast period. Its accelerated growth is fuelled by several factors, including increasing demand for compact, scalable, and cost-efficient data storage solutions. This segment’s agility caters to the burgeoning needs of diverse industries, fostering flexibility and adaptability. The Small Data Center segment’s rapid ascent underscores its pivotal role in catering to evolving technological demands.

  • Edge Computing’s Surge is a Major Opportunity

The surge in edge computing presents expansive opportunities by meeting diverse computing needs. With its capacity for localized data processing, edge computing effectively fulfils the escalating demand for real-time data analysis across numerous industries. This technology facilitates quicker decision-making processes, enhances remote working capabilities, and bolsters operational efficiencies. Its impact spans various sectors, fostering innovation and enabling faster insights, thereby revolutionizing businesses and organizations. Edge computing’s ability to analyze data closer to its source heralds a new era of efficiency, agility, and accelerated performance across industries. According to Data center dynamics Edge Centres USA secures US$5.7 million in seed funding round ahead of Q4 2022 launch in Los Angeles, kicking off US expansion.

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Key Opportunity Analysis:

Investment Opportunities

The U.S. data center industry sustains its allure as a prime investment avenue. Driven by its inherent value and promising growth trajectory, private investors persistently navigate this sector for lucrative opportunities. Its robustness amid evolving technological landscapes positions it favourably for substantial expansion. As demand escalates for data storage and processing capabilities, the industry remains a magnet for diverse investors seeking stable returns and long-term potential. The sector’s pivotal role in the digital economy cements its appeal, fostering ongoing interest from private stakeholders aiming to capitalize on its resilient and thriving market dynamics.

Hyperscale Data Centres’ Growth

The burgeoning ascent of hyperscale data centers signifies an unparalleled opportunity. Anticipated to witness substantial expansion, these centers harness cutting-edge technologies, delivering scalability, cost-efficiency, and heightened efficacy. Their growth trajectory responds to escalating demands, promising businesses an optimal environment for data management. Leveraging innovation, hyperscale data centers stand as a strategic investment avenue, aligning with the evolving needs of industries seeking scalable, economical, and efficient data solutions.

Renewable Energy Adoption

The integration of renewable energy sources like solar, wind, or hydroelectric power within data centers presents a pivotal chance. This strategic adoption not only fortifies sustainability initiatives but also curtails carbon footprints. By meeting the growing need for eco-conscious data processing solutions, businesses can align with environmentally responsible practices, enhancing brand credibility and addressing the rising demand for greener operations in market landscape.

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The Report also Covers the Following Areas:

  • S Data Center Market Size and Forecast
  • S Data Center Market Trends
  • S Data Center Market Analysis by Provider Type

U.S Data Center Market 2023-2028: Key Highlights

  • CAGR of the market during the forecast period 2023-2028
  • Value Chain analysis of key stake holders
  • Detailed analysis of market drivers and opportunities during the forecast period
  • S Data Center Market size estimation and forecast
  • Analysis and predictions on end users’ behavior and upcoming trends
  • Competitive landscape and Vendor market analysis including offerings, developments, and financials
  • Comprehensive analysis of challenges and constraints in the U.S Data Center Market

Covid and Ukrainian Crisis Impact:

The COVID-19 pandemic catalyzed a shift in the U.S. Data Center Market, fostering accelerated digital transformation. With remote work and increased online activities, there was a surge in demand for data storage and cloud services. Businesses sought scalable and reliable infrastructures to support remote operations, boosting investments in data centers. Nevertheless, the pandemic-induced supply chain disruptions and labour shortages posed challenges, affecting timely construction and deployment of data center facilities, impacting the market’s growth trajectory.

The Russia-Ukraine war’s impact on the U.S. Data Center Market manifests in heightened geopolitical risks, potentially influencing hardware supply chains due to disrupted trade relations. This conflict could lead to supply chain disruptions for critical components, impacting data center infrastructure development and possibly causing delays in expansion projects. Additionally, increased uncertainty might trigger cautious investment behavior among stakeholders, potentially affecting the pace of data center growth and strategic decision-making in the market.

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List of Key Market Players in U.S Data Center Market:

The U.S Data Center Market is fragmented with expansive manufacturing capabilities and extensive distribution networks. The key companies profiled are listed below:

  • Amazon Web Services, Inc.
  • Microsoft Corporation
  • Google LLC
  • Equinix, Inc.
  • Meta Platforms, Inc.
  • Digital Realty
  • Oracle Corporation
  • Cisco Systems, Inc.
  • NTT
  • CoreSite (American Tower Corporation)
  • NTT
  • CoreSite (American Tower Corporation)
  • Dell
  • Cyxtera Technologies
  • Schneider Electric
  • IBM Corporation
  • CyrusOne

Related Reports:

Data Center Rack Server Market The Data Center Rack Server Market size is projected to reach US$52.8 billion by 2027, growing at a CAGR of 12.5% from 2022 to 2027. This growth is attributed to the growing demand for scalable data centers and high-density computing.

Data Center Switching Power Supply Market The Data Center Switching Power Supply Market is forecast to reach $8.6 billion by 2026, after growing at a CAGR of 6.4% during the period 2021-2026. The rising demand for improved power monitoring, power distribution and power backup will be a primary driver for switching power supply market.

Data Center Logical Security Market The market for Data Center Logical Security is analysed to reach $10.6 billion in 2025, and is estimated to grow at a CAGR of 9.56% during the forecast period 2020 to 2025. The increasing deployment of cloud technologies in many industries is set to escalate the data center market.

Modular Data Center Market Modular Data Center Market is forecast to reach $42 billion by 2026, growing at a CAGR of 16.8% from 2021 to 2026. Modular data center is a portable method of deploying data centre networking equipment capacity. Ease of mobility and scalability driving the market growth.


About IndustryARC™:

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets. 

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format which assists an intelligent and informed decision-making process.


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Mr. Venkat Reddy IndustryARC Email: [email protected] USA: (+1) 518 282 4727


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