Dublin, Oct. 02, 2023 (GLOBE NEWSWIRE) -- The "US Data Center Colocation Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The U.S. data center colocation market is estimated to reach a value of $11.54 billion by 2028 from $7.82 billion in 2022, growing with a CAGR of 6.70%
The rise in coverage of 5G and its deployment in the region will attract more edge data center investment across the country. The deployment of submarine cables such as SEALink, Bifrost, and others, which are expected to be live in coming years, will help the country establish a better connection with the rest of the world.
The U.S. government initiated several schemes and incentives to attract data center investments. Arizona plans to extend its data center tax breaks by ten years up to 2033. A data center operator must invest a minimum of USD 25 million in a location with a population of 800,000 or less to be eligible for the tax breaks. Alternatively, the operator must invest a minimum of USD 50 million in a location with a population of over 800,000.
Across the U.S. data center colocation market, all colocation companies seek to use renewable energy as their priority power source. For instance, in April 2022, CyrusOne collaborated with Gexa Energy, a NextEra Energy subsidiary, to procure solar (30 MW) and wind (10 MW) energy for its North Texas data centers.
Operators are keenly interested in the Southeastern, especially in Virginia. They make substantial investments to expand their presence and market share in the area. The Western U.S. region is a full-grown colocation market that includes Oregon, Idaho, Utah, and California. These states are home to numerous data center facilities offering colocation services to businesses and organizations in the area.
The U.S. data center colocation market operators see the Midwestern U.S. as a major hotspot. They build facilities in prime locations, such as Illinois, Iowa, Nebraska, and Ohio, to take advantage of the region's potential. The edge data center market is projected to experience substantial growth in New York, New Jersey, Pennsylvania, and Connecticut, greatly improving connectivity in the northeastern US.
The data center space will likely increase in three key locations: Phoenix, Arizona, and Northern Virginia. These regions are major data center locations, attracting substantial investments and attention from colocation providers.
CyrusOne, DataBank, Digital Realty, Equinix, NTT Global Data Centers, Aligned, American Tower, CloudHQ, Cologix, Compass Datacenters, COPT Data Center Solutions, CoreSite, Cyxtera Technologies, DartPoints, DC BLOX, EdgeConneX, Prime Data Centers, and others are prominent operators in the U.S. data center colocation market.
Both wholesale and retail colocation vendors are expected to thrive due to increased demand in the U.S. data center colocation market. Various sectors, including BFSI, IT/telecom, and cloud, drive the demand for colocation services.
Edge Data Center Investments in Upcoming 6G Era Boosted by Next-generation Connectivity
The U.S. is one of the fastest-growing countries regarding technological development and innovations. The upcoming sixth-generation (6G) networks are anticipated to bring advanced networking technologies to make implementing the Industrial Internet of Things (IIoT) easier.
These improved networks will offer enhanced connectivity and capabilities, simplifying the integration of IIoT into different industries and making IT more accessible for businesses to utilize its benefits.
Sustainability Initiatives by Colocation Operators
Colocation companies nationwide focus on using renewable energy as their main power source. Operators plan to reduce harm to the environment by using clean energy solutions.
This change is part of a larger trend in the market to adopt renewable sources, such as solar and wind power, to run data centers and other infrastructure.
Colocation Demand Revolutionized by AI & VR
Artificial intelligence (AI) and virtual reality (VR) drive the demand for colocation services in the U.S. data center colocation market. There is a need for dependable and scalable data center infrastructure As AI and VR gain traction across different industries.
Colocation providers experience a significant increase in demand as businesses look for reliable hosting solutions to accommodate their AI and VR applications, ensuring top-notch performance and seamless connectivity.
KEY QUESTIONS ANSWERED:
- How big is the U.S. data center colocation market?
- What is the growth rate of the U.S. data center colocation market?
- What is the estimated market size in terms of area in the U.S. data center colocation market by 2028?
- What are the key trends in the U.S. data center colocation market?
- How many MW of power capacity is expected to reach the U.S. data center colocation market by 2028?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 321 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value (USD) in 2022 | $7.82 Billion |
| Forecasted Market Value (USD) by 2028 | $11.54 Billion |
| Compound Annual Growth Rate | 6.7% |
| Regions Covered | United States |
MARKET DYNAMICS
Market Opportunities & Trends
- Edge Data Center Investments In Upcoming 6G Era Boosted By Next-Generation Connectivity
- Sustainability Initiatives By Colocation Operators
- Colocation Demand Revolutionized By AI & VR
- Adoption Of Advanced It Infrastructure In Data Centers
Market Growth Enablers
- Tax & Sales Incentives That Fuel Data Center Development
- Continuous Investments By Colocation Operators
- Rise In M&As & JVs In Data Center Industry
- Expansion Of Submarine Cables For Enhanced Connectivity
- Data Center Market Driven By Growth Of Big Data & IoT
Market Restraints
- Supply Chain Disruptions
- Concerns Over Carbon Emissions From Data Centers
- Workforce Challenges & Discrimination
- Data Center Growth Impacted By Security Challenges
VENDOR LANDSCAPE
Prominent Data Center Investors
- CyrusOne
- DataBank
- Digital Realty
- Equinix
- NTT Global Data Centers
Other Data Center Investors
- Aligned
- American Tower
- CloudHQ
- Cologix
- Compass Datacenters
- COPT Data Center Solutions
- CoreSite
- Cyxtera Technologies
- DartPoints
- DC BLOX
- EdgeCore Internet Real Estate
- EdgeConneX
- EdgePresence
- Element Critical
- Evoque
- Flexential
- fifteenfortyseven Critical Systems Realty (1547)
- GIGA Data Centers
- H5 Data Centers
- HostDime
- Iron Mountain
- Netrality Data Centers
- Novva Data Centers
- Prime Data Centers
- QTS Realty Trust
- Sabey Data Centers
- Skybox Datacenters
- Stream Data Centers
- STACK Infrastructure
- Switch
- T5 Data Centers
- TierPoint
- Vantage Data Centers
- Vapor IO
New Entrants
- AUBix
- Corscale Data Centers
- Edge Centres
- iMCritical
- PowerHouse Data Centers
- Quantum Loophole
- Yondr
MARKET LANDSCAPE
Market Overview
- Investment: Market Size & Forecast
- Area: Market Size & Forecast
- Power Capacity: Market Size & Forecast
- Colocation Revenue: Market Size & Forecast
Segmentation by Colocation Service Type
- Retail Colocation
- Wholesale Colocation
Segmentation by Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
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 & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Segmentation by Cooling Technique
- Air-based Cooling Technique
- Liquid-based Cooling Technique
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Segmentation by Tier Standards
- Tier I & Tier II
- Tier III
- Tier IV
Segmentation by Region
- Southeastern US
- Midwestern US
- Southwestern US
- Western US
- Northeastern US
For more information about this report visit https://www.researchandmarkets.com/r/qezx2m
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