U.S. Data Center Construction Market to Reach Around $25 Billion by 2027. Around 2,825 MW Power Capacity will be Added in the Next 5 Year - Arizton (2022)

The US data center construction market by area was valued at 16.62 million sq. ft. in 2021 and is expected to grow at a CAGR of 3.19% to reach 20.07 million sq. ft. by 2027.

| Source: Arizton Advisory and Intelligence

Chicago, Aug. 29, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, U.S. data center construction market to grow at a CAGR of around 3.5% during 2022-2027. The growing popularity of IoT, the emergence of 5G networks, the COVID-19 pandemic, and the demand for streaming online entertainment content at high speeds are the major factors driving the growth of the US data center market. The use of cloud computing services and applications will also continue to grow in the US, leading to further development of large hyperscale cloud-based data centers.

In the US, data centres run by cloud service providers store and process data generated around the world. However, the implementation of data localization across other counties has not affected the US market to date and continues to experience strong growth YoY. Also, the market is witnessing a considerable surge in the development of self-built hyperscale data center facilities. For example, Facebook, Google, and Microsoft are rapidly expanding their presence in the US with the development of additional data centers.

The increase in data center development has led to a higher procurement of renewable energy. Several data center operators, such as Equinix, Digital Realty, Amazon, Google, Apple, and Microsoft, are strongly committed to investing in renewable energy procurement. For instance, in November 2021, Microsoft signed a renewable energy deal with The AES Corporation to power its Virginia data centers. Facebook signed a 160 MW Power Purchase Agreement (PPA) with D. E. Shaw Renewable Investments (DESRI) to power its Virginia data centers. Further, AWS signed a 474 MW PPA with TotalEnergies in July 2021.

U.S. Data Center Construction Market Report Scope

Report AttributesDetails
MARKET SIZE (2027)Around $25 Billion
MARKET SIZE (2021)$20.13 Billion
MARKET SIZE - AREA (2027)20.07 million Square Feet
CAGRAround 3.5%
MARKET SEGMENTSFacility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Tier Standards
GEOGRAPHIC ANALYSISUS (Western, South-Eastern, Mid-Western, South-Western, and North-Eastern)

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Rise in Data Center Expansion Initiatives

Leading data center service providers are investing heavily in new construction and expansions, which has resulted in a significant increase in the number of data centers being built in the US. Acquisitions and joint ventures make it possible for new competitors to enter the market, draw in clients, and increase their market share. The US data center market also encourages real estate and investment companies to buy data centers. Such acquisitions are usually followed by expansion initiatives, leading to stronger market growth. Most investments will be focused on the edge data center market, with unexpected demand from current and new clients in data centers.

Increasing Availability of Innovative UPS Battery Technologies

Data center operators are trying to increase the efficiency of their facilities and reduce the Total Cost of Ownership (TCO). This is especially true in the case of hyperscale and colocation operators that are required to handle significant amounts of data and provide superior performance. The type of UPS systems adopted has emerged as a key consideration for these vendors to minimize costs and optimize the performance of their data center facilities. VRLA-based UPS systems have been adopted by most data center operators due to benefits such as a lower CAPEX. However, owing to limitations such as a limited lifespan and higher OPEX of VRLA-based UPS systems, multiple UPS-based innovations have been introduced in the market.

Key Highlights

  • In 2021, more than 100 data center projects were launched or were under construction in the US. Over 90% of data center projects are developed by colocation service providers and hyperscale operators such as Facebook, Apple, Google, and Microsoft. The rest are enterprise data centers.
  • Data Center Infrastructure Management (DCIM) technologies are rising among data center operators in the US. For instance, Microsoft, Google, and Facebook are developing more efficient software-defined power systems across their data centers in the US.
  • Increased adoption of renewable energy is witnessed among data center operators. For instance, QTS Realty Trust announced that its data center facility in Richmond, Virginia, was using a mix of solar, wind, and hydroelectricity as renewable energies to power the data center
  • To attract data center investment, many state and local governments offer investment and sales tax incentives. For instance, North Carolina offers incentives for data center operators that invest a minimum of around $250 million for Internet data centers and $150 to $225 million for enterprise data centers spread over five years.

Key Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Legrand
  • Rolls-Royce
  • Schneider Electric
  • Vertiv

Key Data Center Contractors

  • Arup
  • Black & Veatch
  • Corgan
  • DPR Construction
  • Fortis Construction
  • Harley Ellis Devereaux (HED)
  • Holder Construction
  • Jacobs
  • Rogers-O’Brien Construction
  • Syska Hennessy Group
  • Turner Construction

Key Data Center Investors

  • Apple
  • Amazon Web Services (AWS)
  • CyrusOne
  • DataBank
  • Digital Realty
  • Equinix
  • Facebook (Meta)
  • Google
  • Microsoft
  • NTT Global Data Centers

Other Prominent Support Infrastructure Providers

  • Airedale International Air Conditioning
  • Alfa Laval
  • Asetek
  • Bloom Energy
  • Carrier
  • Condair
  • Cormant
  • Cyber Power Systems
  • Data Aire
  • Enlogic
  • FNT Software
  • Generac Power Systems
  • Green Revolution Cooling (GRC)
  • HITEC Power Protection
  • Johnson Controls
  • KyotoCooling
  • Mitsubishi Electric
  • Natron Energy
  • NetZoom
  • Nlyte Software
  • Rittal
  • Siemens
  • TRANE (Ingersoll Rand)
  • Tripp Lite
  • Yanmar (Himoinsa)
  • ZincFive

Other Prominent Construction Contractors

  • AlfaTech
  • BlueScope Construction
  • Burns & Mcdonnell
  • CallisonRTKL
  • Clune Construction
  • EMCOR Group
  • Gensler
  • Fluor Corporation
  • Gilbane Building Company
  • HDR
  • HITT Contracting
  • Hoffman Construction
  • JE Dunn Construction
  • Linesight
  • M+W Group (EXYTE)
  • Morrison Hershfield
  • Mortenson
  • Sheehan Nagle Hartray Architects
  • Structure Tone
  • The Mulhern Group
  • The Walsh Group
  • The Weitz Company
  • Tindall

Other Prominent Data Center Investors

  • Aligned
  • American Tower
  • CloudHQ
  • Cologix
  • Compass Datacenters
  • COPT Data Center Solutions
  • CoreSite Realty
  • Cyxtera Technologies
  • DartPoints
  • EdgeCore Internet Real Estate
  • EdgeConneX
  • EdgePresence
  • Element Critical
  • Flexential
  • fifteenfortyseven Critical Systems Realty
  • GIGA Data Centers
  • HostDime
  • Iron Mountain
  • Prime Data Centers
  • QTS Realty Trust
  • Sabey Data Center
  • Skybox Datacenters
  • Stream Data Centers
  • Switch
  • T5 Data Centers
  • Vantage Data Centers
  • Vapor IO

New Entrants

  • AUBix
  • Cirrus Data Services
  • DāSTOR
  • EdgeX Data Centers
  • Novva
  • PointOne
  • Quantum Loophole
  • Yondr

Market Segmentation

Facility Type

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


  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Electrical Infrastructure

  • Uninterruptible Power Supply (UPS) Systems
  • Generators
  • Power Distribution Units
  • Transfer Switches & Switchgear
  • Other Electrical Infrastructure

Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers
  • Condensers & Dry Coolers
  • Economizer & Evaporative Coolers
  • Other Cooling Units

Cooling Techniques

  • Air-based Cooling Techniques
  • Liquid-based Cooling Techniques

General Construction

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

Tier Standards

  • Tier I & II
  • Tier III
  • Tier IV


  • THE U.S.
    • Western
    • South-Eastern
    • Mid-Western
    • South-Western
    • North-Eastern

Explore our data center knowledge base profile to know more about the industry. 

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We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals, and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts. 

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U.S. Data Center Construction Market to Reach Around $25 Billion by 2027. Around 2,825 MW Power Capacity will be Added in the Next 5 Year - Arizton (1)

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How big is the data center construction market? ›

Tech Companies Influence Boom in Massive Data Center Construction Projects
Report MetricDetails
Market Size in 2030USD 31.91 Billion
Growth Rate (2020 to 2030)13.51% CAGR
Base Year2019
Forecast Period2020 to 2030
1 more row
3 Aug 2022

How much electricity do data centers use in the US? ›

Some of the world's largest data centers can each contain many tens of thousands of IT devices and require more than 100 megawatts (MW) of power capacity—enough to power around 80,000 U.S. households (U.S. DOE 2020).

How many data centers are there in the world 2022? ›

Number of data centers worldwide in 2022, by country
CharacteristicNumber of data centers
9 more rows
26 Sept 2022

Who owns the largest data center in the world? ›

According to numerous publications, the world's largest data center is the China Telecom-Inner Mongolia Information Park. At a cost of $3 billion, it spans one million square meters (10,763,910 square feet) and consumes 150MW across six data halls.

What is the largest data center in the US? ›

QTS Metro Data Center (Atlanta, Georgia)

Covering an area of 0.99 million square feet, the Atlanta-based QTS Metro Data Center started its life in 1954 as a Sears southeast distribution center. Today, a 120MVA utility power provided by Georgia Power is the data center's main energy source.

How much does IT cost to build a data center in USA? ›

As a general rule, it costs between $600 to $1,100 per gross square foot or $7 million to $12 million per megawatt of commissioned IT load to build a data center.

Who owns the most data centers in the US? ›

#1) Equinix

Equinix was founded in 1998. Its headquarters is located in Redwood City, California, USA. The company had 7273 employees as of 2017 and serves 24 countries including the UK and the USA. It has a vast network of 202 data centers around the world, with 12 more being installed.

What construction companies build data centers? ›

5 leading data center construction companies one-stop for all data
  • SAS. SAS, situated in Cary, North Carolina, was formed in 1976. ...
  • Turner Construction. ...
  • HITT Contracting.
19 Feb 2022

What happens if the data center has a power cut? ›

As well as the downtime caused, sudden power loss can damage equipment and corrupt data. This, in turn, leads to more downtime and expensive maintenance, and potentially the complete loss of some systems if the data corruption is irrecoverable.

How many data centers exist in the US? ›

Currently there are 1836 colocation data centers from 50 states in USA (America). Save the trouble of contacting the providers, check out our quote service.

How many data centers does the US government have? ›

Publicly Released: Mar 04, 2021. Federal agencies reported operating 5,916 data centers in 2018. As part of IT acquisition reform efforts, an Office of Management and Budget initiative seeks to reduce data center duplication and costs by, for example, using servers more efficiently.

What will replace data centers? ›

Public cloud-based services are becoming more predominant as data centers transition from private to public cloud infrastructure. What's fueling this transition? Enterprises want to leverage the scale and expertise of cloud service providers to reduce their infrastructure services, costs and dedicated resources.

What is the data center capital of the world? ›

“It is true Northern Virginia is the data center capital of the world, the largest market in the world, by three times,” said Rob Faktorow, vice chairman of CBRE, one of the world's largest commercial real estate services and investment firms. “It encompasses almost 50% of the data centers in the United States.”

How long do data centers last? ›

In most cases, the life span of a data center is typically 10 years at the top end.

What company has the most data in the world? ›

Out of all the companies on this list, Google collects and stores most of your information by far.

What is the biggest data company in the world? ›

Oracle is the biggest player in the Big Data area, it is also well known for its flagship database. Oracle leverages the benefits of big data in the cloud. It helps organizations to define its data strategy and approach which includes big data and cloud technology.

What company has the largest data storage? ›

IBM also provides data protection and software defined storage, mainly in the form of cloud storage. As it is one of the biggest companies in the world, IBM has 350,000 employees serving in 170 countries.
IBM Corporation.
Headquarters:Armonk, New York, United States
27 Jul 2022

What are the four main types of data centers? ›

Data center needs vary depending on their structure, physical limitations, density requirements and more. Here are four common data center types including onsite, colocation facilities, hyperscale, and edge data centers, as well as their use cases and industry trends.

How many MW are in a data center? ›

For context, 1 megawatt can power about 700 homes. Sustaining 72 megawatts per hour in one data center campus, the equivalent of over 50,000 homes, is a tremendous feat—albeit, one that may become increasingly common in the years ahead.

Where are most US data centers? ›

Loudoun County, and specifically the Ashburn area — known as “Data Center Alley” — as well as Prince William County are where the vast majority of data centers are located in Northern Virginia.

Does Amazon build its own data centers? ›

Since then, Amazon has only aggressively expanded its data center presence, building out facilities around the world and leasing space from wholesale companies.

How do data centers make money? ›

How do data centers make money? Data center operators make money by leasing or licensing power and space.

Does Apple run its own data centers? ›

Apple has its own data centers, dedicated to meeting the company's varying performance, privacy, regulatory, and security requirements. In addition, Apple utilizes third-party colocation services, whereby it is often one of several customers utilizing a single data center.

Does Netflix own data centers? ›

It took 7 years of migration for Netflix to shut down their last remaining data centers and move completely to the cloud. Moving to the cloud has allowed Netflix to keep its existing members well engaged with overall viewing growing exponentially.

What 2/3 companies have large data centers? ›

The Largest Data Center Providers
  • Digital Realty - A global data center company.
  • Equinix - An enterprise data center provider.
  • Cyxtera - A data center provider known for its cloud and hybrid ready security.
  • BT - A UK-based data center provier.
  • Data Foundry - Enterprise and startup data center provider.
24 Jan 2021

What is the most secure data center in the world? ›

Subtropolis - the most secure underground data centre in the world.

What are the 3 main components of a data center infrastructure? ›

The primary elements of a data center break down as follows:
  • Facility – the usable space available for IT equipment. ...
  • Core components – equipment and software for IT operations and storage of data and applications. ...
  • Support infrastructure – equipment contributing to securely sustaining the highest availability possible.

Which companies own data centers? ›

Data Centers – Publicly-Traded Companies. Below we highlight some of the key metrics of the five largest and publicly-traded data center companies in the United States. These data center providers include Equinix, Digital Realty, CyrusOne, CoreSite, and QTS Realty Trust.

Does Google build their own data centers? ›

We own and operate data centers around the world to keep our products running 24 hours a day, 7 days a week.

Can data center be destroyed? ›

Most data centers require data to be destroyed while hard drives and tapes are still in their custody and control. SLS offers data destruction solutions for small and large projects. Our mobile shred trucks destroys thousands of hard drives per day, at the data center.

What happens to the internet if the power goes out? ›

Wireless internet access relies on devices that require power such as our towers in the field or routers in the home. When the power goes out, those devices stop working, which means you'll lose your connection.

Do data centers pay for electricity? ›

Data centres consume copious amounts of electricity from the grid, therefore demanding more of the electricity supply, which in turn causes the prices of electricity to increase. However, it's important to note that data centres only play a part in the increasing cost of electricity bills.

Does the government have data centers? ›

For years, government agencies have been running their own data centers, mainly out of concerns for security and confidentiality. Yet a government data center can be costly to run. These resources must be updated every few years to stay current.

Why are so many data centers being built? ›

The reliance on technology platforms over last 24 months is at an all-time high, creating demand for more data center space across the world,” says Phoenix-based Carl Beardsley, senior director with JLL Capital Markets, who notes that the big operators and users are responding by building-out data space and turning it ...

Why are data centers important to government? ›

Government recognition

This kind of legislation can help ensure that, in the event of a crisis – whether it be a pandemic or a natural disaster – data centers can retain access to power, people and other resources to keep going and keep businesses and governments operational.

Where is the largest concentration of data centers? ›

Loudoun County's “Data Center Alley” is the world's largest concentration of data centers, with more than 25 million square feet currently in operation and millions more being planned or developed.

How many types of data centers have? ›

Depending on the destination there are four different types of data centers, each designed for a specific business model and has its own operational problems and issues: Corporate data centers. Web hosting data centers, providing computer infrastructure as a service (IaaS) Data centers that provide TurnKey Solutions.

Can Blockchain replace data centers? ›

The rise of blockchain also demands more reliable power, high-performance equipment that can process blocks of data quickly, and more intensive cooling to keep that equipment from overheating during intense computations. These advantages directly compete with traditional data center storage.

Why do data centers fail? ›

Insufficient backup power: The most common reason data centers fail is power loss. Power outages can happen at any time. Due to this possibility, data centers typically have additional power sources in case their primary one is interrupted. The most commonly used backup power sources are generators and batteries.

What is the difference between data center and cloud? ›

Availability: In an on-premises data center, an organization has complete control over their infrastructure, which can be good or bad. In the cloud, availability is protected by service level agreements, which may provide better guarantees than an organization can in-house.

Are data centers AC or DC? ›

Most data centers use alternate current (AC) power distribution systems. Recently, however, there has been a growing interest in the industry to explore and utilize direct current (DC) power distribution systems as another option.

What is the first data center in the world? ›

Built in 1945, the world's first data centre was created at the University of Pennsylvania to house the Electronic Numerical Integrator And Computer (ENIAC) – the very first programmable, general-purpose, electronic digital computer ever created.

Which US state manages 70% of the world's Internet traffic? ›

"We want to continue to build on that fiber network." An Amazon data center across the street from a residential community in the town of Ashburn in Loudoun County, Virginia. Seventy percent of the world's internet traffic passes through all of that fiber. That's why Ashburn is known as Data Center Alley.

What is the problem with data centers? ›

There are several common data center security challenges, from physical security to access-related issues, such as Denial of Service (DoS). In addition, there are data-related issues, such as confidential information being stolen, data being altered, or the pure loss of data.

Are data centers a good investment? ›

During the pandemic, data centers became one of the best performers for real estate investors because of the increased demand for web services.

How many data centers do we need? ›

It's absolutely necessary to have two independent facilities per region and it's actually much more efficient and easy to manage with three. 2+1 redundancy is cheaper than 1+1 and, when there are 3 facilities, a single facility can experience a fault without eliminating all redundancy from the system.

How much is the data center industry worth? ›

The data center market size is estimated to grow by USD 615.96 billion from 2021 to 2026, growing at a CAGR of 21.98% as per the latest market report by Technavio.
Data Center Market Scope
Report CoverageDetails
Performing market contributionNorth America at 35%
11 more rows
20 May 2022

Where are most US data centers located? ›

The top 10 data centre locations in 2022 (the list saw some ties…)
  1. 1: Northern Virginia. Northern Virginia again finished on top of the overall standings for the third consecutive year. ...
  2. 2: Silicon Valley/Singapore. ...
  3. 3: Singapore/Silicon Valley. ...
  4. 4: Atlanta/Chicago. ...
  5. 5: Chicago/Atlanta. ...
  6. 6: Hong Kong. ...
  7. 7: Phoenix. ...
  8. 8: Sydney.
21 Jan 2022

Where is the government data center? ›

The NSA data center located in Augusta, Georgia extends over 160 acres of land and measures in at 604,000 square feet of facilities.

Does the government use AWS or Azure? ›

The Trusted Cloud for Government

With over 7,500 government agencies using AWS, we understand the requirements U.S. government agencies have to balance economy and agility with security, compliance, and reliability.

Who is the largest data storage company? ›

List of Top Data Storage Companies
  • PolarBackup.
  • PureStorage.
  • Microsoft Azure.
  • AWS.
  • Dell EMC.
  • IBM.
  • NetApp.
  • Seagate Technology.
25 Oct 2022

Which is the best data company in the world? ›

  • SAP. Providing business and enterprise solutions is the company's main business, but data analytics is also a part of their business. ...
  • Accenture Analytics. They are one of the biggest companies in the tech niche across the world. ...
  • Tableau. ...
  • Qlik. ...
  • Fractal Analytics. ...
  • Manthan. ...
  • Oracle. ...
  • Alteryx.
28 Sept 2022

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