Unites States Data Center Colocation Market Report 2023-2028: AI and VR Revolutionize Colocation Demand with Submarine Cables and 5G Boosting Connectivity and Data Center Investments

DUBLIN, Sept. 28, 2023 /PRNewswire/ -- 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% 

In the United States, the rapid expansion of 5G coverage and its widespread deployment have created a thriving environment for edge data center investments.

This nationwide trend is driven by the increasing demand for data processing capabilities closer to end-users. Additionally, the deployment of submarine cables like SEALink and Bifrost, expected to become operational in the coming years, is poised to enhance the country's global connectivity, further stimulating data center investments.

To attract more data center investments, the U.S. government has initiated various schemes and incentives. Notably, Arizona is planning to extend its data center tax breaks until 2033. Under this program, data center operators can qualify for tax breaks by investing a minimum of USD 25 million in locations with populations of 800,000 or less or USD 50 million in areas with populations exceeding 800,000.

Across the U.S. data center colocation market, sustainability is a key priority for all colocation companies. A notable example is CyrusOne, which, in April 2022, collaborated with Gexa Energy, a subsidiary of NextEra Energy, to procure 30 MW of solar and 10 MW of wind energy for its North Texas data centers. This move toward renewable energy sources aligns with the industry's commitment to environmental responsibility.

In the Southeastern region, especially Virginia, data center operators are showing keen interest and making significant investments to expand their presence and market share. The Western U.S. region, encompassing states like Oregon, Idaho, Utah, and California, has already established itself as a mature colocation market. These states house numerous data center facilities that offer colocation services to businesses and organizations in the region.

The Midwestern U.S. is emerging as a major hotspot for data center growth, with operators strategically establishing facilities in prime locations such as Illinois, Iowa, Nebraska, and Ohio. Additionally, the edge data center market is expected to experience substantial growth in northeastern states like New York, New Jersey, Pennsylvania, and Connecticut, significantly enhancing connectivity in the region.

Key locations for data center expansion include Phoenix, Arizona, and Northern Virginia, where substantial investments and attention from colocation providers are driving the growth of data center infrastructure.

Prominent operators in the U.S. data center colocation market include 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. Both wholesale and retail colocation vendors are poised to thrive in response to the increased demand across various sectors, including BFSI, IT/telecom, and cloud, further boosting the U.S. data center colocation market.

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?

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/7v1pmr

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