The U.S. data center market is experiencing a seismic shift, driven by a confluence of technological advancements and strategic investments. Valued at USD 208.38 billion in 2024, the market is projected to surge to USD 308.83 billion by 2030, growing at a CAGR of 6.78%. This growth is not merely a numerical increase; it represents a profound transformation in how data centers are designed, built, and operated.
The ecosystem of the U.S. data center market is robust, featuring a diverse array of key players across various infrastructure segments. Leading IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco, Dell, Fujitsu, HPE, IBM, and Oracle are at the forefront of innovation. These companies are not just supplying hardware; they are engineering the future of data management. In the power infrastructure segment, major companies like ABB, Eaton, Schneider Electric, Legrand, Vertiv, Cummins, and Caterpillar are ensuring reliable and efficient systems. Their role is pivotal in supporting the escalating power demands of modern data centers.
Construction contractors like Clayco, HITT Contracting, DPR Construction, Corgan, Turner Construction, Jacobs, and Holder Construction are generating significant revenues through complex data center projects. These contractors are not just building structures; they are crafting the physical backbone of the digital age. The rising construction activity is a boon for civil contractors and subcontractors, creating a ripple effect of economic growth across the country.
Hyperscale operators, including Meta, Google, Microsoft, AWS, and Apple, account for over 40% of total investments. These tech giants are competing intensely for land, power, and colocation capacity, driving the market’s rapid expansion. Major colocation operators such as Equinix, Digital Realty, CyrusOne, Vantage, NTT, STACK Infrastructure, Switch, DataBank, and QTS Realty Trust are also investing heavily to support growing multi-megawatt demands. This intense competition is not just about market share; it’s about shaping the future of digital infrastructure.
The market is also witnessing new entrants in the subcontractor space, especially in Tier III markets. These regions are opening up new multi-million-dollar revenue opportunities for local players, fostering a more inclusive and decentralized data center landscape. This trend is not just about economic growth; it’s about democratizing access to digital infrastructure.
AI-ready data centers are driving significant growth in the U.S. market. The expansion is fueling an increased demand for high-performance computing servers equipped with GPUs and TPUs, essential for handling the intensive workloads associated with artificial intelligence applications. This shift underscores a broader trend: the future of data centers is intrinsically linked to the advancement of AI.
IT infrastructure in the U.S. data center market is expected to grow at a CAGR of 3.46%. Hyperscale self-built data centers continue to grow, with companies identifying suitable locations to bring campuses with hundreds of megawatts online within the next few years. This trend is not just about scale; it’s about strategic placement and efficient resource utilization.
The U.S. data center market is witnessing a significant growth in the adoption of both air and liquid-based cooling techniques. The liquid-based cooling technique is expected to witness significant growth, with a growth rate of around 167.29% between 2025-2030, growing at a CAGR of around 24.20%. Direct chip cooling has gained increased traction, leading to the strong growth of coolant distribution units (CDU) and rear door heat exchangers in combination with dry coolers and cooling towers. This shift towards advanced cooling techniques is not just about efficiency; it’s about sustainability and environmental responsibility.
The market is also witnessing significant growth in terms of electrical infrastructure investment, with a growth rate of 96.37% between 2023 and 2024. Additionally, the market is expected to witness significant growth in terms of electrical investment, with a growth rate of 88.54% between 2025 and 2030. Traditionally, VRLA batteries have been adopted by data center operators. However, data center operators are now moving towards lithium-ion batteries and nickel-zinc batteries. For instance, ABB, Vertiv, and Schneider Electric are major providers of lithium-ion batteries. This transition is not just about technology; it’s about creating a more sustainable and resilient energy infrastructure.
Geographically, the Southeastern U.S. is expected to be the largest market in 2030 in terms of power capacity, with a share of around 35%, followed by the Midwestern U.S. Virginia has