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    US Data Center Interconnect Market

    ID: MRFR/ICT/12917-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Data Center Interconnect Market Research Report: By Type (Service, Software, Hardware), By Application (Workload & Data Storage Mobility, Real-Time Disaster Recovery & Business Continuity, Shared Data & Resources/Server High-Availability Clusters) and By End Users (Enterprise, CSPs, CNPs/ICPs, Government, Others) - Forecast to 2035

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    US Data Center Interconnect Market Infographic
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    US Data Center Interconnect Market Summary

    The United States Data Center Interconnect market is projected to grow significantly from 2.85 USD Billion in 2024 to 12.6 USD Billion by 2035.

    Key Market Trends & Highlights

    US Data Center Interconnect Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 14.5% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 12.6 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 2.85 USD Billion, reflecting the increasing demand for data connectivity solutions.
    • Growing adoption of cloud computing due to the need for enhanced data transfer capabilities is a major market driver.

    Market Size & Forecast

    2024 Market Size 2.85 (USD Billion)
    2035 Market Size 12.6 (USD Billion)
    CAGR (2025-2035) 14.5%

    Major Players

    Telstra, Huawei, Oracle, Cisco, CyrusOne, Digital Realty, IBM, Equinix, Zayo, Microsoft, Intel, AT and T, Verizon, Google, Amazon

    US Data Center Interconnect Market Trends

    The US Data Center Interconnect Market is undergoing significant transformations driven by key market drivers such as the growing demand for cloud services and the increasing need for data security. As companies migrate to hybrid cloud environments, high-speed interconnectivity becomes essential. The rise in data generation and usage, particularly due to the proliferation of IoT devices, is pushing organizations to seek robust interconnect solutions that offer low latency and high reliability. In addition, regulatory requirements around data protection are prompting organizations to adopt interconnect strategies that ensure compliance while enhancing performance.

    There are several opportunities to be explored in this evolving market. As businesses look for solutions that help optimize costs while improving connectivity, providers can leverage advanced technologies like software-defined networking (SDN) and network functions virtualization (NFV) to offer more flexible and scalable interconnect options. Furthermore, there is an increasing opportunity for partnerships between telecommunications companies and data center operators to create more extensive networks that can cater to growing data needs. Trends in recent times show a clear shift towards sustainable practices in data center operations.

    The US government has made efforts to promote energy efficiency and sustainability, which is influencing data center interconnect strategies.Providers are responding by incorporating greener technologies and practices within their offerings. Additionally, advancements in edge computing are gaining traction as organizations seek to process data closer to where it is generated, further reinforcing the need for effective interconnect solutions. This trend is expected to continue as businesses prioritize enhanced speed and efficiency in their operations.

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

    Market Segment Insights

    Data Center Interconnect Market Type Insights

    The US Data Center Interconnect Market is broadly categorized into various types, which significantly shape the overall structure and dynamics of the industry. Among these types, Service, Software, and Hardware stand out as critical components driving the market's evolution. Services encompass a range of offerings such as data transport, connectivity solutions, and network management, all of which are crucial to ensure seamless interconnectivity among data centers.

    As the demand for robust and reliable network solutions escalates, these services increasingly focus on optimizing data flows and reducing latency, thereby enhancing efficiency for users.The Software segment plays a pivotal role in enabling efficient data management and orchestration between multiple data centers. This includes applications for monitoring, analytics, and automation that help organizations manage their interconnected data environments more effectively. The importance of software solutions is underscored by the rising trends of cloud adoption and the need for scalable architectures that simplify connectivity challenges.

    Meanwhile, Hardware, providing the necessary physical infrastructure like routers, switches, and transmission devices, remains vital in supporting the backbone of data center interconnection. The growth in demand for bandwidth due to skyrocketing data generation demands advanced hardware solutions that offer improved performance and reliability. Collectively, these types contribute to the ongoing growth of the US Data Center Interconnect Market, driven by the increasing need for high-speed connectivity, enhanced data security, and improved operational efficiencies across various industries.

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

    Key Players and Competitive Insights

    The US Data Center Interconnect Market is a rapidly evolving sector characterized by its pivotal role in enhancing connectivity and data transfer efficiency among various data centers. As businesses increasingly move towards cloud computing and require more robust data management solutions, the competition within this market has intensified. Major players are focusing on innovative technologies and strategic partnerships to improve their service offerings and achieve a competitive edge. This market is witnessing a surge in demand owing to the need for low latency, high bandwidth, and reliable connections that can meet the expanding requirements of data-heavy applications and services.

    Various trends, including the rise of edge computing and the Internet of Things (IoT), are further amplifying competition among companies aiming to establish their prominence in this domain.Telstra has made a significant impact in the US Data Center Interconnect Market by leveraging its extensive telecommunications expertise to provide resilient and scalable connectivity solutions. The company has established a formidable presence in the region, focusing on creating a seamless experience for customers aiming for high-speed data transfer between locations. Telstra's strengths lie in its robust network infrastructure and dedication to providing innovative services tailored to the needs of businesses.

    By utilizing cutting-edge technology, Telstra has positioned itself as a reliable partner, addressing challenges and providing customized interconnect solutions that cater to both small enterprises and large corporations. The company’s commitment to integrating advanced network capabilities with customer-centric solutions has enhanced its reputation and created a competitive advantage in the US market.Huawei is another prominent contender within the US Data Center Interconnect Market, known for its advanced technological innovations and comprehensive product offerings. Huawei focuses on high-speed optical transmission and intelligent interconnection solutions designed to improve operational efficiency and performance for data centers across the region.

    The company's key products include optical transport networks, data center networking, and cloud-based services, all of which are aimed at facilitating high-capacity data exchange and enhanced connectivity. Huawei's strengths lie in its strong research and development capabilities, enabling it to stay ahead of technological advancements and meet the evolving demands of U.S.-based clients. Although the company has faced regulatory challenges in the region, its strategic mergers and acquisitions have allowed it to strengthen its portfolio and maintain its influence in the competitive landscape of data center interconnect solutions.

    Key Companies in the US Data Center Interconnect Market market include

    Industry Developments

    The US Data Center Interconnect Market has seen significant developments, particularly with major companies such as Telstra, Oracle, Cisco, Digital Realty, and Equinix actively expanding their service offerings. Recently, in August 2023, Microsoft announced a strategic partnership with AT and T to enhance connectivity solutions for enterprise clients. Moreover, Digital Realty completed the acquisition of a portfolio of data centers from a subsidiary of CyrusOne in July 2023, a move aimed at increasing their operational capacity in key markets. Additionally, IBM and Verizon strengthened their collaboration by focusing on edge computing capabilities, which are essential for next-generation data centers.

    The market has shown robust growth, fueled by increasing demand for cloud services and data analytics solutions, leading to enhanced investment in fiber and interconnect technologies. In September 2023, research reported that the market value is projected to reach $15 billion by 2025, reflecting a compound annual growth rate of more than 10%. Companies like Intel, Google, and Amazon are also making significant investments in infrastructure to support the growing needs of enterprises across various sectors, further driving innovation within the market.

    Market Segmentation

    Outlook

    Data Center Interconnect Market Type Outlook

    Data Center Interconnect Market End Users Outlook

    Data Center Interconnect Market Application Outlook

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 2.39(USD Billion)
    MARKET SIZE 2024 2.85(USD Billion)
    MARKET SIZE 2035 12.64(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 14.501% (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 Telstra, Huawei, Oracle, Cisco, CyrusOne, Digital Realty, IBM, Equinix, Zayo, Microsoft, Intel, AT and T, Verizon, Google, Amazon
    SEGMENTS COVERED Type, Application, End Users
    KEY MARKET OPPORTUNITIES Increased cloud adoption, Rising data traffic, Growing demand for hybrid solutions, Expansion of edge computing, Enhanced connectivity requirements
    KEY MARKET DYNAMICS increasing data traffic, cloud adoption, need for redundancy, growth in IoT, demand for low-latency connectivity
    COUNTRIES COVERED US

    FAQs

    What is the expected market size of the US Data Center Interconnect Market in 2024?

    The US Data Center Interconnect Market is expected to be valued at 2.85 USD Billion in 2024.

    What will be the projected market size of the US Data Center Interconnect Market by 2035?

    By 2035, the market is projected to reach a value of 12.64 USD Billion.

    What is the expected compound annual growth rate (CAGR) for the US Data Center Interconnect Market from 2025 to 2035?

    The expected CAGR for the market from 2025 to 2035 is 14.501 percent.

    What are the key players in the US Data Center Interconnect Market?

    Major players in the market include Telstra, Huawei, Oracle, Cisco, and Digital Realty among others.

    What is the projected market value for the service segment of the US Data Center Interconnect Market in 2035?

    The service segment is projected to be valued at 5.16 USD Billion in 2035.

    How much will the software segment of the US Data Center Interconnect Market be valued at in 2035?

    The software segment is expected to reach a value of 4.01 USD Billion by 2035.

    What is the anticipated market value for the hardware segment of the US Data Center Interconnect Market in 2035?

    The hardware segment is projected to be valued at 3.47 USD Billion in 2035.

    What growth drivers are expected to influence the US Data Center Interconnect Market from 2025 to 2035?

    The growth drivers include increased data traffic, need for reliable connectivity, and advancements in technology.

    What emerging trends are anticipated in the US Data Center Interconnect Market?

    Emerging trends include enhanced cloud connectivity, rising demand for edge computing, and growing investments in infrastructure.

    How are geopolitical factors influencing the US Data Center Interconnect Market?

    Geopolitical factors could affect supply chain stability and impact data connectivity solutions overall.

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