North America Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The North America Data Center Market size is expected to grow from USD 26.67 billion in 2023 to USD 55.83 billion by 2028, at a CAGR of 15.92% during the forecast period (2023-2028).

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 25,757.5 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 88.9 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 4,447,348 units by 2029. The United States is expected to house the maximum number of racks by 2029.
• DC Facilities: There are 977 colocation data center facilities in North America. The United States holds the highest share in the region and is expected to exhibit the fastest growth. 5G deployment and digitalization are the greatest sources of demand for data centers in North America.
• Leading Market Player: Switch has five data center facilities in the United States. These facilities have 5704920 sq. ft net rentable capacity and 1590 MW IT load capacity with average racks of more than 50000 units.

North America Data Center Market Trends

Tier 3 is the largest Tier Type

• The tier 4 data center reached 5881.0 MW in 2023 and is further projected to exhibit a CAGR of 13.46%, surpassing 12547.2 MW by 2029.
• Over the coming years, demand for facilities in tiers 1 and 2 will steadily decrease, but growth will continue due to protracted and unpredictable outages. While there is already an adequate supply of retail colocation in these tier 1 and tier 2 locations, large-scale projects are also driving demand to fulfil growing hyperscale cloud requirements as the demand for lower latency and greater efficiency develops.
• The majority of clients will eventually move to tier 3 and tier 4 facilities due to the increasing demand for data processing, storing, and analysis. The tier 3 type held the majority of the market in 2022 due to the significant benefits of its features. Most tier 3 data centers in the area are located in North America, providing numerous channels for power and cooling as well as a high level of redundancy. These data centers have an uptime of about 99.982%, which equals 1.6 hours of downtime annually. Additionally, it is anticipated that the expansion in tier 3 data centers will continue to increase with the increased usage of edge and cloud connectivity.
• The tier 4 type is anticipated to increase at a CAGR of 15.51%. To benefit from total fault tolerance and component redundancy, several industrialized nations are working on adopting the Tier 4 certification. In 2022, there were 81 tier 4 data centers in North America. Tier 4 data centers will grow dramatically in the coming years. This is because more companies are offering cloud-based services, which has prompted more companies to build facilities to offer colocation space with the greatest technology.

United States is the largest Country

• Over the past few years, there has been a sharp increase in the demand for data centers in the area due to growing cloud adoption and rising data generation. The major drivers of the expansion of the data center market in North America are the rising popularity of IoT, the development of 5G networks, the COVID-19 pandemic, and the demand for high-speed streaming of online entertainment content.
• The total IT load capacity of hyper-scale colocation data centers in North America was 4,481.2 megawatts (MW), and by 2029, it is expected to reach 1,2047.5 MW with a CAGR of 14.63%. By 2023, there will be more than 13,000 MW of capacity under development, and by 2029, there will be more than 25,000 MW. More than half this new capacity is being added in the United States by mega data centers, followed by massive-size data centers. The size and quantity of user requirements for data centers kept expanding.
• Several sizable businesses inked leases totaling more than 60 MW, some even over 100 MW. Most big hyper scalers are responsible for a net absorption percentage of more than 70%, which will rise by more than 5% by 2029. The hyperscale data center market in the United States is predicted to grow the fastest in North America. Recent economic incentives and tax benefits have been key factors in constructing the country's data center.
• Canada is a growing nation in the data center industry. A supportive regulatory environment and cool climate support the data center market and are ideal for operations. The Internet of Things (IoT), cloud computing, and Big Data drive Canada's demand for data storage and processing capabilities. As a result, new facilities are being built, and old ones are being expanded.

North America Data Center Industry Overview

The North America Data Center Market is moderately consolidated, with the top five companies occupying 40.47%. The major players in this market are CyrusOne Inc., Digital Realty Trust, Inc., Equinix, Inc., Quality Technology Services and Switch (sorted alphabetically).

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