Report Overview

United States Data Center Market- Industry Trends & Forecast Report 2027

United States data center market was worth USD 8.5 billion in 2020 and is further projected to reach USD 14.9 billion by the year 2027, growing at a CAGR of 8.4% during the forecast period. Market growth is attributable to the presence of tech giants such as Google, Facebook, Amazon, etc., as well as increasing investments in the construction of new hyperscale and colocation data centers. Data centers in the United States are also expected to benefit from the growing amount of data generated by the region's IT sector.

Source: BlueWeave Consulting

United States Data Center Market- Overview

A data center is an infrastructure or space that houses components, such as telecommunications and storage systems, to store large volumes of data. A data center contains a wide range of components, including switches, storage systems, servers, routers, security, data cooling systems, etc., that are used for managing and smooth functioning of the data storage. Companies and organizations use data centers to store, process, and distribute data and applications. However, the construction and management of data centers are extremely expensive.

United States Data Center Market Forecast and Trends

Growth Drivers

Rapid Surge in The Volume of Data

The volume of data is increasing rapidly in the United States, mainly due to the increasing penetration of data-generating devices such as smartphones, wearable, IoT and AI devices, etc. This is fueling the demand for efficient data centers across the country. Furthermore, remote working and the increasing use of the cloud for work-related purposes also drive the need for data centers. The emerging small and medium-sized businesses constantly moving to the cloud for their business operations are also expected to present lucrative growth opportunities to the United States data center market.

Increasing Investment in The Construction of Data Centers

As a result of the high concentration of tech giants in the United States, the data center market attracts significant investment for expansion and growth. Companies invest considerable amounts in building hyper-scale and colocation data centers, which offer opportunities for market growth. For instance, software giant Microsoft recently announced that it would invest USD 200 million into constructing two data centers across the United States in response to the growing demand for Microsoft Azure and its cloud services. Such investments significantly boost the growth of the market.

Restraints

High Power Requirement and Carbon Emission from Data Centers

One of the major threats to the United States data centers market is the negative impact of data centers on the environment. As per the International Energy Agency, data centers consume about 200 terawatt-hours of electricity, which is about 1% of total electricity produced on earth. This negative impact, however, goes beyond electrical consumption and carbon emissions. Data centers emit 0.3% of CO2 into the atmosphere. For instance, water system cleaners used in data centers, contain ammonia or chlorine, which are extremely toxic to the environment.

Impact of COVID-19 on United States Data Center Market

The sudden outbreak of the COVID-19 pandemic presented significant growth opportunities to the United States data center market. The market was initially halted as the volume of data was increasing incessantly during the lockdown period. Additionally, the construction of data centers was obstructed due to a shortage of workforce. However, the market is expected to flourish at a high growth rate in the post-COVID-19 period due to the rising remote working culture even and sudden growth in the online streaming and OTT platforms.

United States Data Center Market - By Service

Based on services, the United States data center market is segmented into system integration, monitoring services, and professional services. The system integration services account for the largest market share. This is because a data center comprises several components such as switches, servers, storage systems, firewalls, routers, application delivery controllers, etc. Therefore, system integration services are required to bind all these components and make them work as a whole. On the other hand, the monitoring services segment also cover a substantial share in the market with the emergence of hyperscale data centers that require operating and organizational compliance.

United States Data Center Market - By Solution

Based on solutions, the United States data center market is categorized into power, servers, management software, networking technologies, cooling, and other solutions. The power segment is estimated to hold the largest share in the United States data center market in 2020. With the increasing adoption of power distribution and energy-efficient resources to cut down the operating cost and carbon emission of data centers, the organizations are increasingly opting for power solutions, which will further offer them operational efficiency.

United States Data Center Market - By Type

Based on types, the United States data center market is segmented into enterprise data centers, managed services data centers, colocation data centers, and cloud data centers. The enterprise data centers hold the largest market share because of the high concentration of global giants such as Apple, Inc., Amazon, Facebook, Microsoft, Google, etc., who own their standalone data centers to manage their ever-increasing volume of data. However, colocation data centers are gaining huge popularity among small and medium-sized businesses, which is expected to drive its market in the forecast period.

Competitive Landscape

The leading players of the United States data center market are Cisco Systems, Inc., Verizon Wireless, Inc., Dell Technologies Inc., AT&T Inc., Hewlett Packard Enterprise, Equinix, Inc., IBM Corporation, Atos SE, Lenovo Group Limited, NetApp, Inc., and other prominent players.

The United States data center market is highly fragmented, with the presence of various industry players. For smooth operation, the companies invest substantially in expanding their facilities and upgrading their hardware. In addition, the adoption of strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prevalent in the market.

Recent Developments

• In September 2021, Hexatronic Group AB, a Sweden-based company, announced the acquisition of Data Center Systems (DCS) based in the United States to enter the US market.
• In September 2021, Facebook announced to have invested more than USD 16 billion in building and operating its data centers in the United States as it launched its new website showcasing its global data centers.

Scope of the Report

By Service

• System Integration
• Monitoring Services
• Professional Services

By Solution

• Power
• Servers
• Management Software
• Networking Technologies
• Cooling
• Other Solutions

By Type

• Enterprise Data Centers
• Managed Services Data Centers
• Colocation Data Centers
• Cloud Data Centers

By End-User

• BFSI
• Telecom and IT
• Media and Entertainment
• E-Commerce
• Government
• Healthcare
• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Rapid Surge In The Volume Of Data
         2. Increasing Investment In The Construction Of Data Centers
      2. Market Restraints
         1. High Initial Investment And Management Cost
      3. Market Challenges
         1. High Power Consumption and Carbon Emission
      4. Market Opportunity
         1. Increasing Adoption Of Hyper-Converged Infrastructure
         2. Favorable Government Policies
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. United States Data Center Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Service
         1. System Integration
         2. Monitoring Services
         3. Professional Services
      2. By Solution
         1. Power
         2. Servers
         3. Management Software
         4. Networking Technologies
         5. Cooling
         6. Other Solutions
      3. By Type
         1. Enterprise Data Centers
         2. Managed Services Data Centers
         3. Colocation Data Centers
         4. Cloud Data Centers
      4. By End User
         1. BFSI
         2. Telecom and IT
         3. Media and Entertainment
         4. E-Commerce
         5. Government
         6. Healthcare
         7. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on United States Data Center Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Cisco Systems, Inc.
   2. Verizon Wireless, Inc.
   3. Dell Technologies Inc.
   4. AT&T Inc.
   5. Hewlett Packard Enterprise
   6. Equinix, Inc.
   7. IBM Corporation
   8. Atos SE
   9. Lenovo Group Limited
   10. NetApp, Inc.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: United States Data Center Market Segmentation

Figure 2: United States Data Center Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: United States Data Center Market Size, By Value (USD Billion), 2017-2027

Figure 5: United States Data Center Market Share (%), By Service, By Value, 2017-2027

Figure 6: United States Data Center Market Share (%), By Solution, By Value, 2017-2027

Figure 7: United States Data Center Market Share (%), By Type, By Value, 2017-2027

Figure 8: United States Data Center Market Share (%), By End User, By Value, 2017-2027

List of Tables

Table 1: United States Data Center Market Size, By Service, By Value, 2017-2027

Table 2: United States Data Center Market Size, By Solution, By Value (USD Billion), 2017-2027

Table 3: United States Data Center Market Size, By Type, By Value (USD Billion), 2017-2027

Table 4: United States Data Center Market Size, By End User, By Value (USD Billion), 2017-2027

Table 5: Cisco Systems, Inc. Financial Analysis

Table 6: Cisco Systems, Inc. Business Overview

Table 7: Verizon Wireless, Inc. Financial Analysis

Table 8: Verizon Wireless, Inc. Business Overview

Table 9: Dell Technologies Inc. Financial Analysis

Table 10: Dell Technologies Inc. Business Overview

Table 11: AT&T Inc. Financial Analysis

Table 12: AT&T Inc. Business Overview

Table 13: Hewlett Packard Enterprise Financial Analysis

Table 14: Hewlett Packard Enterprise Business Overview

Table 15: Equinix, Inc. Financial Analysis

Table 16: Equinix, Inc. Business Overview

Table 17: IBM Corporation Financial Analysis

Table 18: IBM Corporation Business Overview

Table 19: Atos SE Financial Analysis

Table 20: Atos SE Business Overview

Table 21: Lenovo Group Limited Financial Analysis

Table 22: Lenovo Group Limited Business Overview

Table 23: NetApp, Inc. Financial Analysis

Table 24: NetApp, Inc. Business Overview