US Data Center Colocation Market

The colocation market in the US is expected to reach USD 65.44 billion by 2030, up from USD 38.80 billion in 2025, at a 11.0% CAGR. Growth is supported by a strong cloud ecosystem and rising AI adoption across hyperscalers and large enterprise platforms. AI and GPU-intensive workloads are driving an increase in demand for liquid cooling systems and advanced power architectures across colocation facilities. Enterprises across various industries, including banking, healthcare, media, e-commerce, aerospace, and government, are adopting hybrid and multicloud operating models. Hybrid and multicloud architectures require low-latency interconnection between colocation sites, private data centers, edge locations, and hyperscale cloud regions. Key demand is coming from AI inference, machine learning pipelines, real-time analytics, autonomous systems, and bandwidth content delivery.

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Across the US, providers such as Equinix (US), Digital Realty (US), QTS Data Centers (US), CoreSite (US), and Iron Mountain (US) continue to expand. US operators are prioritizing high-power designs, cooling systems, and energy-efficient infrastructure to support the sustainability goals and performance requirements of AI workloads. Investment decisions are increasingly influenced by power availability, grid readiness, regulatory alignment, and proximity to hyperscale cloud regions across primary and emerging US markets. Such factors are shaping long-term deployment strategies as enterprises demand resilient, compliant, and scalable colocation environments supporting mission-critical digital operations nationwide.

In May 2025, NTT Data (Japan) announced plans to launch and list a data center real estate investment trust (REIT) on the Singapore Stock Exchange. This REIT will be seeded with six colocation facilities across the US, Europe, and Singapore, totaling over 41,000 square meters and approximately 80 megawatts. The initiative aims to promote growth in NTT’s data center business and maximize corporate value.

EQUINIX

Equinix is a global real estate investment trust focused on interconnection-led colocation and data center services across major international markets. The company operates more than 260 IBX data centers, spanning 33 countries, and supports the enterprise, cloud, and network connectivity requirements of its customers. Its strategy emphasizes software-defined interconnection to enable scalable architectures and access to ecosystems. Equinix provides carrier-neutral environments with connectivity to over 3,000 cloud and network providers. The company continues investing in high-density cooling, sustainability programs, and AI-enabled monitoring. Recent xScale developments support high-power deployments and strengthen hybrid multicloud infrastructure capabilities for large enterprise customers.

DIGITAL REALTY

Digital Realty is a global provider of carrier-neutral data centers and interconnection services, operating more than 300 facilities across over 25 countries. Its strategy is built around PlatformDIGITAL, which supports modular, AI-ready data halls, build-to-suit campuses, and renewable energy sourcing. The company’s strengths include scalable, high-density power, strong interconnection frameworks, and a focus on sustainability through the use of green energy and carbon-neutral designs. In July 2024, Digital Realty acquired a colocation data center campus in Slough, UK, for USD 200 million, strengthening its presence in the London market. The acquisition expands access to interconnected services and supports rising regional demand for digital infrastructure. Digital Realty continues to expand geographically through acquisitions while vertically integrating power, cooling, and interconnection layers to deliver reliable, compliant, and energy-efficient colocation services globally.

Market Ranking

In 2024, the data center colocation market in the US remained highly competitive, with a small group of operators controlling national capacity. Equinix, Digital Realty, QTS Data Centers, CoreSite, Cyxtera, and Iron Mountain together accounted for roughly 45–50% of installed colocation capacity nationwide. In January 2024, Equinix expanded its AI-ready portfolio by deploying NVIDIA DGX-based infrastructure and liquid cooling across multiple IBX campuses. In mid-2024, Digital Realty expanded its PlatformDIGITAL strategy by introducing high-density data halls and renewable-powered capacity in key US markets. By early 2025, QTS had accelerated its hyperscale expansion through the addition of new campuses in Phoenix and Atlanta, designed for immersion cooling and AI-optimized power blocks. CoreSite strengthened interconnection ecosystems in Los Angeles and Denver, while Iron Mountain expanded wind- and solar-powered colocation capacity across the US.

Related Reports:

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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