The US Data Center Market will Witness Investments of $110 Billion in 2028 - Arizton

CHICAGO, June 28, 2023 /PRNewswire/ -- According to Arizton's latest research report, the US data center market will grow at a CAGR of 3.57% during 2022-2028.

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The US data center market witnessed investments from several colocation, hyperscale, and data center operators. Several new entrants have also entered the market. The market is aided by the high use of cloud-based services across regions, digitalization initiatives, the demand for streaming online entertainment content at high speeds, and the deployment of 5G services.

The US data center market is expected to grow at a steady pace owing to the presence of major hyperscalers. Arizton's research identified several investments from Meta (Facebook), Google, Amazon Web Services, and Microsoft, all actively investing in the region. Moreover, the Chicago data center market witnessed maximum demand from the cloud and technology sector. Telecom, entertainment & media sectors were other prominent sectors that increased the demand for data center services, cumulatively creating around 20% of the overall demand.

U.S. Data Center Market Landscape Report Scope

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Segmentation Overview

• Some IT infrastructure trends witnessed in the U.S. data center market are the adoption of NVMe storage, 200/400 GbE ports, ARM-based architecture, server virtualization, and converged and hyper-converged infrastructure.
• The lithium-ion data center battery industry is expected to account for a share of 30−40% by 2024. Modern UPS systems are being innovated to be modular and occupy less space in facilities. It is expected that with a significant increase in data being generated and stored, low tolerance for downtime, and need for sustainability, lithium-ion adoption will increase significantly, with the market share of VRLA batteries decreasing significantly.
• The U.S. data center market witnessed several innovations and changes over time. Several operators are innovating to improve the operations of their facilities. Some innovations include adopting eco-diesel generators, HVO fuel, fuel cells (Hydrogen based), and DCIM solutions.
• Liquid cooling is the most popular cooling technology used in High-Performance Computing (HPC) in data centers to support AI and ML workloads. These technologies require powerful computing capabilities for TPU, where the heat generated exceeds the cooling limit and thus demands superior efficiency to keep the chips working optimally.

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Market Trends

Sustainability Measures Adopted by Data Center Operators

• The increased data center power consumption and the need to decrease carbon emissions prompted many service providers to purchase clean, renewable energy sources to power their current and new facilities.
• Data centers are among the largest consumers of power and a leading source of carbon emissions across several locations. Several operators and governments have implemented initiatives to lower carbon emissions from data centers.
• According to one of the operators of the world's largest PPA marketplace and leading provider of renewable transaction infrastructure, LevelTen Energy, the renewable energy power purchase agreement (PPA) prices in Q2 2022 rose to over 5.3% and around 30% YOY in the North American industry.

AI & HPC Applications Driving Liquid Immersion & Direct-to-Chip Cooling

• Vendors in the U.S. data center market operating in the liquid immersion and direct-to-chip cooling industry are strengthening their offerings through multiple OEM partnerships. For instance, Fujitsu, IBM, HPE, Dell Technologies, and ODM server suppliers actively offer direct-to-chip cooling and liquid immersion server racks to run AI and ML workloads to their HPC clients.
• The Skybox Datacenters facility in Houston has deployed a cooling system in its DownUnder GeoSolutions (DUG) project, which has more than 40,000 servers immersed in liquid coolant in 720 enclosures.
• Microsoft partnered with Wiwynn to test the deployment of a two-phase immersion-cooled server at a data center in Washington.

Market Segmentation

Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Cooling Techniques

• Air-based Cooling Technique
• Liquid-based Cooling Technique

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Tier Standard

• Tier I & II
• Tier III
• Tier IV

Geography

• United States
• South-Eastern
• South-Western
• Western
• Mid-Western
• North-Eastern

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Arizton's Expertise in Data Center Industry 

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SOURCE Arizton Advisory & Intelligence

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