U.S. Data Center Colocation Market Set for Robust Growth by 2030
New York, Wednesday, 3 September 2025.
The U.S. data center colocation market is projected to grow at a 14.88% CAGR from 2024 to 2030, driven by innovations in cooling systems and AI adoption, impacting the broader economy.
Driving Forces Behind Market Expansion
The significant growth forecasted for the U.S. data center colocation market from 2024 to 2030 is largely attributed to advancements in power and cooling systems, as well as the increasing adoption of artificial intelligence (AI) technologies. These developments are crucial in supporting the high-density computing requirements that are becoming increasingly prevalent in today’s digital landscape [1]. The introduction of innovative systems such as liquid cooling, which offers enhanced efficiency for data centers, exemplifies the technological progress driving this growth [1].
Economic Implications and Broader Impact
The anticipated growth in the U.S. data center colocation market is expected to have substantial implications for the broader economy. As businesses across various sectors increasingly depend on data-driven solutions, the demand for robust and efficient data center services becomes critical. This trend is not only bolstering the tech sector but is also expected to create ripple effects across the economy, enhancing productivity and competitiveness [1][2]. The continuous evolution of data center infrastructure, including the adoption of AI, is poised to support economic growth by facilitating more efficient business operations and fostering innovation [1].
The Role of Artificial Intelligence
Artificial intelligence is playing a pivotal role in shaping the future of data centers. The U.S. government’s commitment to advancing AI infrastructure, as demonstrated by initiatives like the Stargate project launched in January 2025, underscores the strategic importance placed on AI technology [1]. This initiative, led by the private sector in collaboration with OpenAI, aims to enhance AI capabilities across the nation, thereby driving demand for next-generation data center solutions capable of supporting AI workloads [1]. The resulting increase in demand for AI-ready data centers is contributing to the projected growth in the colocation market [2].
Challenges and Opportunities
While the growth prospects for the U.S. data center colocation market are promising, several challenges need to be addressed. These include regulatory hurdles and power capacity constraints, which could potentially slow down the expansion of data center facilities in certain regions [3]. Despite these challenges, the market presents significant opportunities for investment and innovation, particularly in areas focused on sustainability and energy efficiency [4]. As businesses seek to enhance their digital infrastructure, the demand for cutting-edge data center solutions is set to rise, offering lucrative prospects for industry stakeholders [1][3].