Petroc Taylor
Research expert covering global developments in the use of data
Data centers in the U.S. - statistics & facts
As rapid digitization drives ever increasing data traffic, the data center has become a critical piece of digital infrastructure. The rise of cloud computing has also prompted a shift in scale, with small, on-premises server rooms giving way to colossal, out of town facilities known as hyperscale data centers. The United States has become firmly established as a global leader in this rapidly evolving sector, boasting several key regional hyperscale hubs. It is these regional powerhouses that drove U.S. data center revenue of over 95 billion U.S. dollars in 2023, with this figure set to surpass 120 billion U.S. dollars by 2028.
Northern Virginia dominates the market
Several regions across the U.S. have established themselves as key data center hubs, with Silicon Valley, Chicago, and the Dallas/Ft. Worth area each offering total data center capacity of over 400 megawatts as of the second half of 2023. However, none come close to Northern Virginia, which dominates the U.S. data center market. The Northern Virginia region boasted an inventory of almost 2,500 megawatts as of the second half of 2023, while data center vacancy in the region sat at less than one percent, the lowest of any U.S. market. Despite this, the region faces difficulties with the pressure placed on local infrastructure. This could cause significant delays to the 1,540 megawatts currently under construction in the region.U.S. operators among top REITs
Major U.S. colocation data center operators such as Equinix and Digital Realty have found financial success by renting space at large data center facilities across the globe. This has seen them consistently rank among the United States’ largest Real Estate Investment Trusts (REITs), with Equinix’s market cap sitting at over 68 billion U.S. dollars in November 2023. Meanwhile, a highly competitive market persists for the supply of data center equipment. Dell EMC has established itself as the leading manufacturer in the supply of server and storage equipment across the U.S. and Europe, while Cisco is the dominant manufacturer of networking equipment.Efficiency and sustainability pressures loom
Global supply issues saw the average monthly rental rate at U.S. data centers increase sharply in 2022 and 2023. The average price in 2023 sat at around 163 U.S. dollars per kilowatt, up from approximately 120 U.S. dollars two years prior. This has led many organizations to streamline their data strategy, with almost half of respondents to a 2023 survey naming data center consolidation as a key cost saving measure. Discussions around sustainability have also been at the forefront, with operators across the globe struggling to increase efficiency amid increased scrutiny from clients and regulators. Although U.S. data center operators are not currently subject to the type of mandatory reporting begin introduced in the European Union, the prospect of future legislation will keep sustainability high on the agenda moving forward.
