Report features key DC investors – Apple, Applied Digital, AWS, CyrusOne, DataBank, Digital Realty, Equinix, Google, Meta, Microsoft and NTT.
ResearchAndMarkets.com values the US data center construction market at US$ 48.18 billion in 2024, projected to reach US$ 112.33 Billion by 2030 – rising at a CAGR of 15.15%
The market hosts major global colocation operators such as Equinix, Digital Realty, QTS Realty Trust, CyrusOne, Aligned Data Centers, DataBank, Iron Mountain, Vantage Data Centers and STACK Infrastructure.
Competition among these operators has intensified with AI demand skyrocketing the demand for capacity across all key markets, the report says.
The market has witnessed several new entrants, as well as Bitcoin companies, entering space to support AI workload deployment. Operators with significant land and power resources will dominate in terms of growth compared to others, the report says.
The entry of new players in the market, such as Corscale Data Centers, Crane Data Centers, Edged Energy, Rowan Digital Infrastructure, NE Edge and Quantum Loophole intensifies competition.
PowerHouse Data Centers and Corscale Data Centers are referenced in the report for their major developments in Northern Virginia.
The report says the market will witness an increase in powered shell data center development compared to turnkey and fully fitted data centers. It will continue to see the entry of new providers with access to land and power, who will rent the space to other data center operators by constructing only the core and shell, reducing investment and increasing ROI.
Leading hyperscale operators, including AWS, Microsoft, Meta, and Google continue to expand their self-built presence across top US data center markets, which are likely to co-exist throughout the forecast period.
The report identifies the American Midwest as emerges as a cost-effective alternative to coastal markets, offering strategic connectivity and reliable infrastructure, attracting colocation and hyperscale operators alike.
The key market trends
Megawatt to Gigawatt hyperscale campus
In March 2025, AI contributed over 50% growth in the U.S. data center market in 2024, the report says.
The power capacity addition by collocation as well as hyperscale self-built was more than 4.5 GW in 2024. With the rise of AI technologies such as ChatGPT by OpenAI, AI has shifted from a supportive role to a key trend that is reshaping the data center Industry.
The report identifies the uptake of AI in different sectors as still quite low, with the US Census Bureau indicating that only 3.8% of businesses were utilizing AI for production as of 2024 – a percentage share expected to skyrocket in the next five years. Also, in October 2024, OpenAI increased its data center presence through collaborations with Oracle and the establishment of new facilities in Texas.
The report says that in addition to open OpenAI, hyperscale cloud service providers and GPU as a service, providers are also expanding their presence significantly in the market – factors expected to have a positive impact.
Innovative data center technologies
The need for innovative techniques has become essential to meet the increasing demand for efficient, sustainable, and scalable infrastructure. As digital transformation accelerates across industries, the reports data centers must evolve to keep pace with growing technological and environmental challenges. By utilizing energy-efficient infrastructure and integrating carbon-free solutions, data centers significantly reduce operational costs and promote environmental responsibility.
The report references “a few” data center operators are considering nuclear power as a low-carbon energy source. Data center operators might publicly support nuclear as a carbon-neutral option and some major companies are already mentioning their role in providing low-carbon electricity. Big companies like AWS, Google, and Microsoft also have mentioned nuclear power as a low-carbon electricity option. In October 2024, Google partnered with Kairos Power to utilize small nuclear reactors for powering its AI data centers, aiming to deploy its first reactor by 2030
Companies in the US data center construction market are said in the report to be focussing on sustainable building materials to reduce carbon emissions. For instance, the report says, in October 2024, Microsoft utilized cross-laminated timber (CLT) in the construction of its Northern Virginia data centers, aiming to reduce the embodied carbon footprint by up to 35% compared to steel and 65% compared to concrete.
Geographical analysis
- Northern Virginia continues to dominate the data center growth, with strong contributions from local counties such as Fairfax, Loudoun and Prince William counties. Over 9 GW of data center, capacity is expected to be added across North Viginia during 2025-2030.
- Texas is the second-largest data center market in the United States. Cities like Dallas, Austin, Irving, San Antonio and Houston are attracting hyperscale self-built and colocation investments. In 2024, Texas contributed to a data center capacity addition of around 350 MW, with colocation contributing to over 60% of the capacity additions.
- In 2024, Georgia has gained significant momentum in data center supply, particularly in Atlanta and surrounding areas like Lithia Springs and Douglasville. The market has transitioned from a Tier-II status to a key destination due to the availability of land and power. The market is expected to witness a capacity addition of over 2.2 GW during 2025-2030.
- Arizona, particularly Phoenix, continues to become an attractive location for colocation and hyperscale development due to better power availability, lower disaster risks and cost efficiency. Locations like Mesa, Goodyear and Chandler also continue to witness significant growth.
- Illinois, with key locations such as Chicago, Elk Grove Village and Aurora, is growing as a Midwest data center hub. The strategic location of Chicago and demand from cloud service providers drives persistent growth.
- Oregon, with locations like Portland and Hillsboro, is one of the fastest-growing data center markets. Abundant power, business-friendly tax policies and cool climates support sustainable cooling methods.
- New York/New Jersey, while constrained by space for hyperscale development, remains a key market for colocation facilities. The Northeast region is poised for growth in edge data center facilities, particularly in areas with space constraints.
