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    US Data Center Colocation Market

    ID: MRFR/ICT/13363-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Data Colocation Market Research Report: By Type (Network Hardware, Server & Storage, Cooling Units, Others), By Deployment Mode (Small Scale, Large Scale) and By End User (BFSI, Healthcare, Government & Defense, IT & Telecom, Others) - Forecast to 2035

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    US Data Center Colocation Market Research Report - Forecast till 2035 Infographic
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    Table of Contents

    US Data Center Colocation Market Summary

    The US Data Colocation market is projected to grow significantly from 12.5 USD Billion in 2024 to 42.3 USD Billion by 2035.

    Key Market Trends & Highlights

    US Data Colocation Key Trends and Highlights

    • The US Data Colocation market is valued at 12.5 USD Billion in 2024.
    • By 2035, the market is expected to reach 42.3 USD Billion, indicating substantial growth.
    • The compound annual growth rate (CAGR) for the market from 2025 to 2035 is estimated at 11.7%.
    • Growing adoption of cloud computing due to increasing demand for data storage is a major market driver.

    Market Size & Forecast

    2024 Market Size 12.5 (USD Billion)
    2035 Market Size 42.3 (USD Billion)
    CAGR (2025-2035) 11.7%

    Major Players

    DataBank, Iron Mountain, StackPath, CoreSite Realty, Flexential, Hosting.com, TierPoint, Digital Realty, Equinix, Windstream Wholesale, Mapletree Industrial Trust, Rackspace Technology, CyrusOne, QTS Realty Trust

    US Data Center Colocation Market Trends

    The US Data Colocation Market is witnessing significant growth driven by various key market drivers. One major driver is the increasing demand for data storage due to the exponential growth of data generation, largely fueled by advancements in technology and the widespread adoption of cloud computing. Businesses are increasingly relying on colocation services to improve data security, redundancy, and disaster recovery capabilities. Additionally, the rising need for compliant data storage solutions, especially in sectors like healthcare and finance, is pushing organizations to seek colocation services that meet regulatory requirements.

    There are numerous opportunities available in this market, particularly for providers who focus on enhancing infrastructure to support emerging technologies such as artificial intelligence and machine learning.By offering scalable and adaptable colocation services, providers can cater to businesses looking to enhance their operations through these advanced technologies. Furthermore, as remote work continues to become the norm, the requirement for robust and secure data centers is becoming more pronounced, creating an opportunity for colocation centers to expand their offerings. Recent trends within the US indicate a shift towards sustainability and green initiatives within data centers.

    As companies are becoming more conscious of their environmental impact, there is a growing emphasis on energy-efficient technologies and sustainable practices in data colocation services. This trend not only caters to increasing regulatory pressures and consumer expectations but also aligns with corporate responsibilities towards environmental stewardship. Overall, the US Data Colocation Market is at a pivotal point where evolving customer needs, technological advancements, and increasing regulatory requirements are shaping the future of data storage and management. Providers who can adapt to these changes will likely capture a larger market share as they align their services with emerging market demands.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    US Data Center Colocation Market Drivers

    Market Segment Insights

    Data Colocation Market Type Insights

    The US Data Colocation Market is increasingly evolving, driven by various types of offerings tailored to meet the diverse needs of customers. In this landscape, the Type category plays a crucial role, comprising essential components such as Network Hardware, Server and Storage solutions, Cooling Units, and others that cater to extensive operational demands. Network Hardware, which includes pivotal devices that facilitate connectivity and data transfer, has become foundational in ensuring seamless operations within data centers.

    This segment is crucial as it supports the growing complexity and volume of data traffic, driven by the increasing reliance on cloud services and digital transformations across various industries in the US.The Server and Storage segment is equally important, providing the necessary computing power and capacity for data management and analysis. As organizations adopt more data-driven strategies, the demand for robust server architectures and scalable storage solutions is on the rise, emphasizing the critical nature of this segment.

    Moreover, Cooling Units are a significant consideration within the Type category, as they are vital for maintaining the optimal functioning temperature of data center equipment. With an increase in energy efficiency standards and a focus on sustainable practices, effective cooling solutions are becoming a key priority for data center operators in the US. Lastly, the Others category encompasses various ancillary solutions that support data colocation operations, from security systems to backup power solutions, enhancing overall service reliability and operational integrity.

    Collectively, these components within the Type segment contribute to the robust framework of the US Data Colocation Market, highlighting not just their individual importance but also the collaborative synergy needed to support the ever-growing demand for data services.

    As businesses and service providers strive to enhance their operational efficiency, investing in these types of solutions becomes pivotal for long-term success in a competitive landscape, ultimately acting as a cornerstone for the growth trajectory of the US Data Colocation Market as a whole.A notable factor is the increasing regulations around data privacy and management in the US, which necessitates advanced solutions across all segments, thereby driving innovation and adoption strategies within the data colocation ecosystem, ensuring it meets both compliance and efficiency needs.

    Data Colocation Market Deployment Mode Insights

    The Deployment Mode segment of the US Data Colocation Market plays a crucial role in shaping the landscape of data management and storage solutions. As businesses increasingly seek to enhance their operational efficiency, the demand for data colocation services continues to rise. This segment is primarily categorized into two types: Small Scale and Large Scale. Small Scale deployments often cater to startups and mid-sized enterprises that require flexibility and cost-effective solutions to manage their data storage needs.

    These facilities emphasize high accessibility and agility, making them ideal for companies looking to scale quickly without significant upfront investment.On the other hand, Large Scale deployments typically serve larger organizations with substantial data requirements. These facilities offer robust infrastructure, enhanced security, and advanced services, thus fulfilling the needs of enterprises looking to optimize their data management while ensuring compliance with stringent industry regulations.

    The trajectory for both categories in the US Data Colocation Market demonstrates that the increasing reliance on data-driven strategies will continue to stimulate growth, ultimately contributing to the market's significant expansion in the coming years.As businesses embrace digital transformation, the Deployment Mode segment becomes increasingly relevant in driving industry innovation and addressing evolving customer demands.

    Data Colocation Market End User Insights

    The US Data Colocation Market is witnessing substantial growth, driven by increased digital transformation across various industries. The End User segment encapsulates distinct sectors including Banking, Financial Services, and Insurance (BFSI), Healthcare, Government and Defense, IT and Telecom, and Others, each presenting unique needs for data management and storage. The BFSI sector significantly drives demand for reliable data colocation services, prioritizing security and compliance in managing vast customer data and transactions.

    Similarly, the Healthcare industry relies heavily on colocation to ensure data availability and regulatory compliance, especially in storing sensitive patient information.Government and Defense organizations require robust disaster recovery and data security measures, which bolsters the relevance of data colocation. The IT and Telecom sectors demand high performance and scalability, as they frequently experience rapid growth and innovation. Meanwhile, the Others category encompasses a diverse range of industries, showcasing the versatility and adaptability of the data colocation market to meet varied requirements.

    Overall, these segments highlight the critical role of colocation in advancing digital infrastructure in the US, driving further market growth and innovation.

    Get more detailed insights about US Data Center Colocation Market Research Report - Forecast till 2035

    Regional Insights

    Key Players and Competitive Insights

    The US Data Colocation Market has seen significant growth and intense competition in recent years as businesses increasingly recognize the importance of maintaining secure, efficient, and scalable data storage solutions. As the demand for data storage continues to surge, several key players have emerged, each striving to differentiate their offerings while navigating evolving technological advancements and regulatory challenges. The competitive landscape is characterized by a variety of providers that specialize in different aspects of colocation services, such as data security, redundancy, and energy efficiency, catering to a diverse clientele that includes enterprises, startups, and government entities.

    This burgeoning market ecosystem is marked by strategic partnerships, technological innovations, and a focus on sustainability practices that have reshaped how companies think about data access and management.DataBank has established itself as a prominent player within the US Data Colocation Market, known for its strong presence and comprehensive service offerings. The company differentiates itself through its robust infrastructure and commitment to customization, allowing clients to tailor their colocation services to meet unique business needs. DataBank focuses on providing high levels of security, reliability, and scalability, making it an attractive option for organizations looking to expand their operations.

    Its strategic locations across various metropolitan areas in the United States ensure low-latency access and minimal downtime, which is critical for businesses with time-sensitive operational requirements. Additionally, DataBank’s strong emphasis on customer service and support further solidifies its position as a leader in the colocation sector, enabling it to build long-term relationships with clients in diverse industries. Iron Mountain has also carved out a significant niche in the US Data Colocation Market, offering a wide range of key products and services that cater to data-driven organizations.

    With a strong emphasis on data security and compliance, Iron Mountain provides colocation services that prioritize the protection of sensitive information while ensuring regulatory requirements are met. The company's extensive portfolio includes cloud services, disaster recovery solutions, and data management options that seamlessly integrate with its colocation offerings. Iron Mountain's strategic acquisitions and partnerships have bolstered its market presence, enabling it to expand its service capabilities and geographic reach across the United States.

    The company's commitment to operational excellence, alongside its innovative solutions for data compliance and sustainability, positions it as a formidable competitor within the colocation landscape, attracting a diverse range of clients seeking reliable and secure data storage options.

    Key Companies in the US Data Center Colocation Market market include

    Industry Developments

    The US Data Colocation Market has seen notable developments recently, particularly with the significant increase in demand driven by the rapid growth of cloud computing and the need for improved data management solutions. Companies such as Digital Realty and Equinix continue to expand their infrastructures, with Digital Realty recently announcing the development of new data centers in key markets, aiming to accommodate increased bandwidth demands. In terms of mergers and acquisitions, Iron Mountain finalized its acquisition of I/O Data Centers in June 2023, strengthening its position in the market.

    Additionally, CyrusOne completed its merger with KKR in July 2023, a move projected to enhance its service capabilities. Market growth continues to be bolstered by Flexential and CoreSite Realty, both of which are investing in state-of-the-art facilities to meet customer needs. As per reports, the US market expects a valuation growth to surpass USD 50 billion by 2025, underscoring the increasing criticality of reliable colocation services. Major trends include the ongoing shift toward hybrid cloud solutions and the emphasis on sustainability in data center operations, further influencing investment and operational strategies in the sector.

    Market Segmentation

    Outlook

    • BFSI
    • Healthcare
    • Government & Defense
    • IT & Telecom
    • Others

    Data Colocation Market Type Outlook

    • Network Hardware
    • Server & Storage
    • Cooling Units
    • Others

    Data Colocation Market End User Outlook

    • BFSI
    • Healthcare
    • Government & Defense
    • IT & Telecom
    • Others

    Data Colocation Market Deployment Mode Outlook

    • Small Scale
    • Large Scale

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 11.2(USD Billion)
    MARKET SIZE 2024 12.51(USD Billion)
    MARKET SIZE 2035 42.27(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 11.703% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED DataBank, Iron Mountain, StackPath, CoreSite Realty, Flexential, Hosting.com, TierPoint, Digital Realty, Equinix, Windstream Wholesale, Mapletree Industrial Trust, Rackspace Technology, CyrusOne, QTS Realty Trust
    SEGMENTS COVERED Type, Deployment Mode, End User
    KEY MARKET OPPORTUNITIES Increased cloud adoption, Edge computing growth, Hybrid IT demand, Enhanced security requirements, Sustainability initiatives in data centers
    KEY MARKET DYNAMICS Increasing data generation, Cloud adoption surge, Regulatory compliance demands, Energy efficiency considerations, Enhanced cybersecurity measures
    COUNTRIES COVERED US

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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    FAQs

    What is the projected market size of the US Data Center Colocation Market by 2035?

    The US Data Center Colocation Market is expected to be valued at 64.85 billion USD by 2035.

    What is the expected CAGR for the US Data Center Colocation Market from 2025 to 2035?

    The market is anticipated to grow at a CAGR of 13.297 percent during the period from 2025 to 2035.

    How much is the US Data Center Colocation Market worth in 2024?

    In 2024, the US Data Center Colocation Market is valued at 16.43 billion USD.

    What are the projected values for Retail Colocation by 2035?

    Retail Colocation is projected to be valued at 27.99 billion USD by 2035.

    What will be the market size for Wholesale Colocation in 2024?

    Wholesale Colocation is valued at 9.51 billion USD in 2024.

    Who are the key players in the US Data Center Colocation Market?

    Key players include Iron Mountain, Equinix, Digital Realty, and CoreSite Realty among others.

    What will be the market size for Wholesale Colocation by 2035?

    Wholesale Colocation is expected to reach 36.86 billion USD by 2035.

    Which segment dominates the US Data Center Colocation Market?

    Wholesale Colocation is expected to have a larger market share compared to Retail Colocation by 2035.

    What are the growth drivers for the US Data Center Colocation Market?

    Increasing data consumption and demand for cloud services are significant growth drivers for the market.

    How does the market size vary by region?

    The market size may vary significantly by region, driven by local demand for data center services and infrastructure investments.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. US Data Colocation Market, BY Type (USD Billion)
    45. Network Hardware
    46. Server & Storage
    47. Cooling Units
    48. Others
    49. US Data Colocation Market, BY Deployment Mode (USD Billion)
    50. Small Scale
    51. Large Scale
    52. US Data Colocation Market, BY End User (USD Billion)
    53. BFSI
    54. Healthcare
    55. Government & Defense
    56. IT & Telecom
    57. Others
    58. Competitive Landscape
    59. Overview
    60. Competitive Analysis
    61. Market share Analysis
    62. Major Growth Strategy in the Data Colocation Market
    63. Competitive Benchmarking
    64. Leading Players in Terms of Number of Developments in the Data Colocation Market
    65. Key developments and growth strategies
    66. New Product Launch/Service Deployment
    67. Merger & Acquisitions
    68. Joint Ventures
    69. Major Players Financial Matrix
    70. Sales and Operating Income
    71. Major Players R&D Expenditure. 2023
    72. Company Profiles
    73. DataBank
    74. Financial Overview
    75. Products Offered
    76. Key Developments
    77. SWOT Analysis
    78. Key Strategies
    79. Iron Mountain
    80. Financial Overview
    81. Products Offered
    82. Key Developments
    83. SWOT Analysis
    84. Key Strategies
    85. StackPath
    86. Financial Overview
    87. Products Offered
    88. Key Developments
    89. SWOT Analysis
    90. Key Strategies
    91. CoreSite Realty
    92. Financial Overview
    93. Products Offered
    94. Key Developments
    95. SWOT Analysis
    96. Key Strategies
    97. Flexential
    98. Financial Overview
    99. Products Offered
    100. Key Developments
    101. SWOT Analysis
    102. Key Strategies
    103. Hosting.com
    104. Financial Overview
    105. Products Offered
    106. Key Developments
    107. SWOT Analysis
    108. Key Strategies
    109. TierPoint
    110. Financial Overview
    111. Products Offered
    112. Key Developments
    113. SWOT Analysis
    114. Key Strategies
    115. Digital Realty
    116. Financial Overview
    117. Products Offered
    118. Key Developments
    119. SWOT Analysis
    120. Key Strategies
    121. Equinix
    122. Financial Overview
    123. Products Offered
    124. Key Developments
    125. SWOT Analysis
    126. Key Strategies
    127. Windstream Wholesale
    128. Financial Overview
    129. Products Offered
    130. Key Developments
    131. SWOT Analysis
    132. Key Strategies
    133. Mapletree Industrial Trust
    134. Financial Overview
    135. Products Offered
    136. Key Developments
    137. SWOT Analysis
    138. Key Strategies
    139. Rackspace Technology
    140. Financial Overview
    141. Products Offered
    142. Key Developments
    143. SWOT Analysis
    144. Key Strategies
    145. CyrusOne
    146. Financial Overview
    147. Products Offered
    148. Key Developments
    149. SWOT Analysis
    150. Key Strategies
    151. QTS Realty Trust
    152. Financial Overview
    153. Products Offered
    154. Key Developments
    155. SWOT Analysis
    156. Key Strategies
    157. References
    158. Related Reports
    159. US Data Colocation Market SIZE ESTIMATES & FORECAST, BY TYPE, 2019-2035 (USD Billions)
    160. US Data Colocation Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT MODE, 2019-2035 (USD Billions)
    161. US Data Colocation Market SIZE ESTIMATES & FORECAST, BY END USER, 2019-2035 (USD Billions)
    162. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    163. ACQUISITION/PARTNERSHIP
    164. MARKET SYNOPSIS
    165. US DATA COLOCATION MARKET ANALYSIS BY TYPE
    166. US DATA COLOCATION MARKET ANALYSIS BY DEPLOYMENT MODE
    167. US DATA COLOCATION MARKET ANALYSIS BY END USER
    168. KEY BUYING CRITERIA OF DATA COLOCATION MARKET
    169. RESEARCH PROCESS OF MRFR
    170. DRO ANALYSIS OF DATA COLOCATION MARKET
    171. DRIVERS IMPACT ANALYSIS: DATA COLOCATION MARKET
    172. RESTRAINTS IMPACT ANALYSIS: DATA COLOCATION MARKET
    173. SUPPLY / VALUE CHAIN: DATA COLOCATION MARKET
    174. DATA COLOCATION MARKET, BY TYPE, 2025 (% SHARE)
    175. DATA COLOCATION MARKET, BY TYPE, 2019 TO 2035 (USD Billions)
    176. DATA COLOCATION MARKET, BY DEPLOYMENT MODE, 2025 (% SHARE)
    177. DATA COLOCATION MARKET, BY DEPLOYMENT MODE, 2019 TO 2035 (USD Billions)
    178. DATA COLOCATION MARKET, BY END USER, 2025 (% SHARE)
    179. DATA COLOCATION MARKET, BY END USER, 2019 TO 2035 (USD Billions)
    180. BENCHMARKING OF MAJOR COMPETITORS

    US Data Colocation Market Segmentation

     

     

     

    • Data Colocation Market By Type (USD Billion, 2019-2035)

      • Network Hardware
      • Server & Storage
      • Cooling Units
      • Others

     

    • Data Colocation Market By Deployment Mode (USD Billion, 2019-2035)

      • Small Scale
      • Large Scale

     

    • Data Colocation Market By End User (USD Billion, 2019-2035)

      • BFSI
      • Healthcare
      • Government & Defense
      • IT & Telecom
      • Others

     

     

     

     

     

     

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