Description
The data centre colocation market in the US continues to flourish, driven by the growth of hyperscale cloud infrastructure and social media platforms, and continued enterprise adoption of outsourced infrastructure deployment models. The emergence of AI is set to turbocharge this market and has led to the rapid acceleration of data centre planning and growth. The significant increases in capacity requirements, extended planning horizons, and constraints around raw resources like land and energy, is creating a massive pipeline with capacity that is under development and land banked, outstipping what is operational. The shift in the numbers is truly unprecedented and makes an analysis of what is in the pipeline a useful and increasingly critical indicator that sits alongside the present supply and demand situation that is live on the ground.
In this report, we try to account for and quantify these shifts in the landscape, focusing on the US data centre colocation market and aiming to provide an estimated inventory of the national operational capacity, as well as the capacity in the pipeline (under development and land banked). This report is also focused on analysing key tier-1 and tier-2 US markets and includes detailed breakdowns of the regional markets and dynamics. Hyperscale self-builds are accounted for in separate Structure Research reports. But it is clear that the demand in the market is strong enough, that even with hyperscale self- builds, there will be plenty of demand for data centre colocation, especially in edge markets and where power is less constrained. As of 2024, the operating capacity of the US data centre colocation market sits at an estimated 11.4GW. The amount of capacity under development is an estimated 10.9GW, with land banked capacity of up to 30GW.
This report provides a data-driven overview of the data centre development pipelines in both primary and emerging markets in the US, while digging into the competitive landscape and supply and demand dynamics. We have also accounted for the new GPU cloud installations that have been moving into the colocation environments of established operators and a new breed of providers that have crossed over into the data centre infrastructure market from the world of cryptocurrency. The emerging pipeline is not just growing exponentially, it is home to a more diverse set up of operators, various ecosystem participants across real estate, energy, development, construction and operations, while also spawning new business models and opportunities.
