US Data Center Colocation Market worth $65.44 billion by 2030
The report "US Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/Gen AI - Forecast to 2030" is projected to grow from USD 38.80 billion in 2025 and to reach USD 65.44 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 11.0% during the forecast period.
Browse 60 market data Tables and 15 Figures spread through 150 Pages and in-depth TOC on "US Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/Gen AI - Forecast to 2030"
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The market is expected to expand as enterprises across the US accelerate their cloud adoption to support the need for scalable digital infrastructure. Organizations are increasingly shifting workloads into colocation facilities to improve resilience and meet operational reliability expectations. Data protection requirements and industry compliance standards are reinforcing demand for professionally managed facilities nationwide. Energy efficiency priorities are pushing providers to invest in advanced cooling systems and optimized power designs. At the same time, hyperscale expansion and enterprise modernization initiatives are supporting sustained capacity additions across major metropolitan data center hubs.
By workload type, general-purpose IT segment to hold larger market share than high performance computing segment in 2025
General-purpose IT workloads remain central to colocation demand because enterprises continue migrating core business applications into professionally managed facilities. These deployments typically include ERP platforms that support finance and operations across large, distributed enterprise environments. CRM systems and virtualization stacks are also collocated to improve uptime while maintaining tighter control over performance and data governance. Hybrid IT strategies are reinforcing demand for providers that integrate reliably with public cloud and private cloud environments. Predictable power requires flexible capacity models and standardized infrastructure designs to continue supporting sustained adoption across multiple US enterprise verticals.
By end user, hyperscalers segment to witness higher growth rate than enterprises segment during forecast period
Hyperscalers are expected to witness significant growth in the US data center colocation market during the forecast period. Growth is driven by increasing demand for large-scale capacity to support expanding cloud platforms and digital service ecosystems. Colocation enables hyperscalers to deploy automation-ready and energy-efficient infrastructure without owning or operating facilities. Leading cloud providers are relying on colocation partners to support burst workloads and accelerator-driven computing requirements. Standardized high-density deployments and strong interconnection ecosystems improve scalability and latency performance. Flexible contracts and regional coverage further strengthen colocation adoption as hyperscalers pursue modular expansion and sustainability objectives.
The key vendors include Equinix (US), Digital Realty (US), NTT Data Corporation (Japan), QTS Data Centers (US), KDDI Corporation (Japan), Iron Mountain (US), China Telcom (China), and CyrusOne (US).
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