North America Data Center Outsourcing Infrastructure Utility Services Market Research Report By Service Type (Cloud Services, Managed Hosting Services, Colocation Services, Data Center Migration Services, Disaster Recovery Services), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By End Use Industry (IT and Telecommunications, BFSI, Healthcare, Retail, Government), By Operational Model (Capex, Opex, Subscription) and By Regional (US, Canada)- Forecast to 2035

North America Data Center Outsourcing Infrastructure Utility Services Market Overview

As per MRFR analysis, the North America Data Center Outsourcing Infrastructure Utility Services Market Size was estimated at 18.99 (USD Billion) in 2023. The North America Data Center Outsourcing Infrastructure Utility Services Market is expected to grow from 20.5(USD Billion) in 2024 to 44 (USD Billion) by 2035. The North America Data Center Outsourcing Infrastructure Utility Services Market CAGR (growth rate) is expected to be around 7.19% during the forecast period (2025 - 2035).

Key North America Data Center Outsourcing Infrastructure Utility Services Market Trends Highlighted

The North America Data Center Outsourcing Infrastructure Utility Services Market is seeing a significant shift towards hybrid and multi-cloud models, addressing the growing need for flexible and scalable infrastructure solutions. As businesses increasingly adopt digital transformation initiatives, the demand for outsourcing data center services is propelled by the necessity for enhanced operational efficiency and cost-effectiveness. This emphasis on cloud solutions is driven by the desire for improved data management, security, and accessibility, with more companies moving their critical workloads to cloud environments. 

Moreover, sustainability is becoming a key concern as organizations focus on reducing their carbon footprint.Policies in the US and Canada that promote environmental responsibility are making companies more likely to use greener technologies in their data centers. Now, using renewable energy and building energy-efficient infrastructure are seen as big competitive advantages. 

There are also opportunities in the growth of edge computing, as being close to end users becomes more important for improving performance and latency in many applications, especially in retail and healthcare. The growth of IoT and the increasing need for real-time data processing amplify the need for localized data centers. Also, as rules about data security and privacy get stricter, data centers that can offer compliant and secure infrastructure will probably become more popular.

Recent trends indicate a rise in partnership models between traditional IT service providers and cloud platforms, fostering innovative outsourcing solutions. Many organizations are opting to collaborate with specialized providers who can enhance their data handling capabilities while offering insights into emerging technologies and market adaptations. The overall landscape is shaped by a growing recognition of the strategic importance of agile data center infrastructure that can keep pace with rapid technological advancements in North America.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

North America Data Center Outsourcing Infrastructure Utility Services Market Drivers

Rising Demand for Cloud Computing Services

The North America Data Center Outsourcing Infrastructure Utility Services Market is experiencing significant growth driven by the increasing adoption of cloud computing services. According to recent data from the U.S. National Institute of Standards and Technology, the cloud computing market in North America is projected to reach over 100 billion USD by 2025, reflecting a compound annual growth rate (CAGR) of approximately 17%. 

This surge is largely attributed to organizations such as Amazon, Microsoft, and Google, which are expanding their cloud infrastructure capabilities and investing heavily in data centers across North America.These investments heighten the demand for outsourcing data center services, enabling businesses to leverage cost efficiencies and scalable solutions essential for their operations. The trend of digital transformation across various sectors, including finance, healthcare, and retail, further accelerates the need for robust data infrastructure, thus contributing to the growth potential within the North America Data Center Outsourcing Infrastructure Utility Services Market.

Focus on Cost-Effectiveness and Operational Efficiency

Cost considerations play a pivotal role in the North America Data Center Outsourcing Infrastructure Utility Services Market. Companies are increasingly outsourcing their data center needs to minimize capital expenditures and operational costs. A report from the U.S. Small Business Administration indicates that small and medium-sized enterprises can save up to 30% in IT expenses by outsourcing data center services. 

This is significant for North American businesses seeking to optimize their budget allocation, especially in a competitive landscape.As organizations such as IBM and Hewlett-Packard Enterprise continue to advocate for outsourcing as a means of achieving operational efficiency, the trend is expected to drive further investments into outsourcing infrastructures.

Increasing Cybersecurity Concerns

The escalation of cybersecurity threats is a critical driver in the North America Data Center Outsourcing Infrastructure Utility Services Market. According to the Cybersecurity and Infrastructure Security Agency (CISA), cyberattacks targeting data centers increased by over 60% in the past two years. 

Organizations like Cisco are addressing these growing concerns by developing advanced security solutions and advocating for outsourced data center operations that come with built-in security features.The urgency for businesses to safeguard sensitive data has prompted many to rely on specialized service providers that can offer comprehensive cybersecurity solutions in their data management processes, thus fostering growth in the outsourcing market.

Advancements in Edge Computing Technologies

The emergence of edge computing technologies is reshaping the North America Data Center Outsourcing Infrastructure Utility Services Market. Businesses are now shifting towards decentralized data processing to meet the demands of real-time analytics and low-latency applications. According to the U.S. Department of Commerce, the edge computing market is expected to grow by over 35% annually through 2025. 

Major industry players such as Dell Technologies and Cisco are investing heavily in edge computing infrastructure in North America.This movement drives companies to seek outsourcing solutions that accommodate edge computing strategies, contributing positively to the growth trajectory of the North America Data Center Outsourcing Infrastructure Utility Services Market.

North America Data Center Outsourcing Infrastructure Utility Services Market Segment Insights

Data Center Outsourcing Infrastructure Utility Services Market Service Type Insights

The North America Data Center Outsourcing Infrastructure Utility Services Market is evolving rapidly, with the Service Type segment emerging as a critical area of focus. Within this segment, several key offerings such as Cloud Services, Managed Hosting Services, Colocation Services, Data Center Migration Services, and Disaster Recovery Services are gaining traction. As organizations continue to embrace digital transformation and cloud adoption, Cloud Services have become increasingly integral, significantly influencing the market landscape. 

Managed Hosting Services, catering to enterprises requiring reliable and scalable infrastructure with enhanced security measures, are also making significant inroads as businesses seek to optimize performance and minimize downtime. Colocation Services play a vital role by allowing companies to house their servers within third-party data centers while benefiting from shared resources, notably power and cooling efficiencies. This trend is promising as enterprises shift away from maintaining on-premises data centers. 

Data Center Migration Services simplify the transition for businesses that need to relocate their infrastructures, promoting agility as they adapt to changing technology demands. Meanwhile, Disaster Recovery Services are essential in an era marked by digital threats and data breaches, ensuring business continuity through strategic planning and resource allocation. The North America Data Center Outsourcing Infrastructure Utility Services Market is characterized by continuous innovation, driven by technological advancements and the increasing importance of efficient data management solutions. 

The rising volume of data generated in various industries, particularly tech, finance, and healthcare, fuels demand across these service types. Additionally, the ongoing trend of hybrid and multi-cloud strategies provides companies with the flexibility of using multiple cloud environments, thereby driving innovation in these service offerings. As organizations prioritize data security, operational efficiency, and cost-effectiveness, all segments of the Service Type category will play a significant role in shaping the future of the market, fostering growth opportunities while addressing emerging challenges in data management and storage.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Insights

The Deployment Type segment of the North America Data Center Outsourcing Infrastructure Utility Services Market encompasses various deployment strategies, including Public Cloud, Private Cloud, and Hybrid Cloud. Each of these options plays a crucial role in shaping the market’s landscape. The Public Cloud model is characterized by its cost-effectiveness and scalability, making it a popular choice for small to medium-sized enterprises looking to minimize operational expenditures while leveraging extensive resources. 

In contrast, the Private Cloud model provides enhanced security and control, appealing to organizations with stringent compliance demands or sensitive data, thereby reflecting organizations' growing focus on data privacy.The Hybrid Cloud combines the benefits of both Public and Private Cloud solutions, offering flexibility and allowing businesses to optimize their workloads according to specific needs. This trend indicates a significant shift towards hybridization within the industry, as organizations prioritize data-driven strategies and seek solutions that cater to their unique operational requirements. Overall, the Deployment Type segment serves as a vital contributor to the evolving nature of infrastructure utility services in North America, as enterprises increasingly adopt cloud technologies to drive efficiency and innovation.

Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Insights

The North America Data Center Outsourcing Infrastructure Utility Services Market is increasingly driven by various End Use Industries, each contributing uniquely to its growth landscape. The IT and Telecommunications sector stands out as a significant player, driven by the relentless demand for cloud services and digital transformation, necessitating robust data center infrastructure. Similarly, the Banking, Financial Services, and Insurance (BFSI) industry emphasizes security and compliance, leveraging data centers for storing sensitive financial data and handling high transaction volumes.Healthcare is also a crucial sector, as it undergoes digitization, requiring reliable data management for patient records and telehealth services. 

The Retail sector is evolving with the adoption of e-commerce, often relying on data centers to manage inventory and customer data efficiently. The Government sector prioritizes data security, pushing for solid infrastructure to support public services and protect sensitive information. Collectively, these segments underscore the diverse applications and growing importance of data center outsourcing, presenting significant opportunities and challenges in adapting to rapid technological advancements and increasing data requirements across industries.

Data Center Outsourcing Infrastructure Utility Services Market Operational Model Insights

The Operational Model segment of the North America Data Center Outsourcing Infrastructure Utility Services Market plays a crucial role in shaping the overall market landscape. This segment encompasses various approaches such as capital expenditures (Capex), operational expenditures (Opex), and subscription models, each addressing different customer needs and preferences. The Capex model emphasizes significant upfront investments in infrastructure, appealing to organizations seeking long-term ownership and control. 

In contrast, the Opex model promotes flexibility, allowing businesses to better manage their budgets by distributing costs over time, thus accommodating variable consumption needs.Meanwhile, the subscription model has gained traction among companies looking for scalability and reduced financial risk, providing on-demand services with minimal commitment. This diversity within the Operational Model segment reflects the evolving market dynamics driven by technological advancements and changing business priorities, especially in North America, where digital transformation initiatives are booming. 

Organizations are increasingly focused on optimizing their IT infrastructure while minimizing costs and maximizing efficiency, indicating strong growth opportunities within this sector.The North America Data Center Outsourcing Infrastructure Utility Services Market serves as a vital hub for innovations in operational models, contributing to a more agile and adaptive business ecosystem overall.

Data Center Outsourcing Infrastructure Utility Services Market Regional Insights

The North America Data Center Outsourcing Infrastructure Utility Services Market is characterized by robust growth, reflecting the increasing demand for reliable and efficient data management solutions across the region. Within this landscape, the United States holds a dominant position, driven by a high concentration of technology companies and a burgeoning demand for cloud services. This inclination towards digital transformation fuels the market dynamics, making the US a key player in shaping trends and innovations. 

Canada complements this growth, with its own significant investments in data centers and infrastructure, aligning with sustainability practices and government initiatives aimed at enhancing technological capabilities.The combined efforts in both nations represent a strong commitment to leveraging data center outsourcing for improved operational efficiency and strategic advantages. Opportunities in areas such as renewable energy adoption and advanced cooling technologies are expected to further bolster the North America Data Center Outsourcing Infrastructure Utility Services Market. 

As businesses adapt to evolving consumer demands and regulatory landscapes, the regional segmentation highlights the crucial roles of both the US and Canada in driving the market forward.Market growth in this sector is propelled by factors such as increasing data creation and consumption, along with the rise of edge computing, which necessitates agile and scalable infrastructure solutions. Overall, the North America Data Center Outsourcing Infrastructure Utility Services Market displays promising potential, with strong support from both regional players and the overall industry environment.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

North America Data Center Outsourcing Infrastructure Utility Services Market Key Players and Competitive Insights

The North America Data Center Outsourcing Infrastructure Utility Services Market is experiencing significant growth, driven by an increasing demand for efficient data management and infrastructure solutions. As organizations move toward digital transformation, the need for outsourcing data center services has become pivotal. This market landscape is characterized by fierce competition among various players that offer a range of services, including colocation, managed services, and cloud-based solutions. The competition is marked by technological advancements and innovative service offerings that aim to enhance operational efficiency, scalability, and security for businesses in various sectors. 

Understanding the competitive dynamics within this market is crucial as stakeholders navigate the complexities of aligning their business needs with the evolving service offerings.Oracle stands out in the North America Data Center Outsourcing Infrastructure Utility Services Market as a robust player with a comprehensive range of cloud solutions and database management services. The company benefits from its strong brand reputation and long-standing expertise in enterprise applications, making it an attractive option for organizations seeking to enhance their data infrastructure. Oracle's commitment to innovation and investment in cloud technology has positioned it as a leader in the space, allowing clients access to high-performance computing and seamless integration of various data services. 

Furthermore, Oracle's partnerships with other technology providers and its extensive support network strengthen its market presence, enabling clients to leverage advanced functionalities while ensuring compliance with industry standards.AT&T also plays a significant role in the North America Data Center Outsourcing Infrastructure Utility Services Market, offering a variety of connectivity solutions, managed hosting, and colocation services tailored to meet the needs of diverse enterprises. The company is known for its extensive fiber network, which enhances its service delivery and connectivity options. 

AT&T has made substantial investments in its infrastructure, reinforcing its position in the market as a reliable provider. The firm's strategy includes a focus on mergers and acquisitions to expand its service capabilities and enhance technological offerings. With a strong commitment to cybersecurity and digital transformation initiatives, AT&T distinguishes itself by providing integrated solutions that cater to the demands of modern businesses. This fusion of services contributes to AT&T's ongoing relevance and competitiveness in the North American market.

Key Companies in the North America Data Center Outsourcing Infrastructure Utility Services Market Include:

• Oracle
• AT&T
• Hewlett-Packard Enterprise
• Amazon Web Services
• Digital Realty
• Verizon
• NTT Communications
• Rackspace Technology
• CenturyLink
• IBM
• Alibaba Cloud
• Microsoft
• Interxion
• Equinix
• Google Cloud

North America Data Center Outsourcing Infrastructure Utility Services Market Developments

Recent developments in the North America Data Center Outsourcing Infrastructure Utility Services Market have highlighted significant growth and strategic movements among major players. In October 2023, Oracle announced an expansion of its cloud infrastructure in North America, responding to increased demand for hybrid cloud services. In July 2023, Amazon Web Services launched new features aimed at providing enhanced cloud security and resilience, which are crucial in today's digital landscape. 

Additionally, Digital Realty revealed plans for a new data center in Virginia to meet rising market demand for scalable solutions. During this period, there have been notable mergers and acquisitions; for instance, in September 2023, IBM acquired a small cloud services company to bolster its offerings within the enterprise market. Verizon has also ramped up investments in edge computing capabilities as businesses shift toward more decentralized infrastructures. 

Market valuations are showing substantial growth, driven by the accelerating digital transformation across various industries in North America, helping providers like Microsoft and Google Cloud to solidify their market presence. Overall, the North America Data Center Outsourcing market remains dynamic, as companies adapt to evolving customer needs and competitive pressures.

North America Data Center Outsourcing Infrastructure Utility Services Market Segmentation Insights

Data Center Outsourcing Infrastructure Utility Services Market Service Type Outlook

• Cloud Services
• Managed Hosting Services
• Colocation Services
• Data Center Migration Services
• Disaster Recovery Services

Data Center Outsourcing Infrastructure Utility Services Market Deployment Type Outlook

• Public Cloud
• Private Cloud
• Hybrid Cloud

Data Center Outsourcing Infrastructure Utility Services Market End Use Industry Outlook

• IT and Telecommunications
• BFSI
• Healthcare
• Retail
• Government

Data Center Outsourcing Infrastructure Utility Services Market Operational Model Outlook

• Capex
• Opex
• Subscription

Data Center Outsourcing Infrastructure Utility Services Market Regional Outlook

• US
• Canada

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	18.99(USD Billion)
MARKET SIZE 2024	20.5(USD Billion)
MARKET SIZE 2035	44.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.19% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Oracle, AT&T, Hewlett Packard Enterprise, Amazon Web Services, Digital Realty, Verizon, NTT Communications, Rackspace Technology, CenturyLink, IBM, Alibaba Cloud, Microsoft, Interxion, Equinix, Google Cloud
SEGMENTS COVERED	Service Type, Deployment Type, End Use Industry, Operational Model, Regional
KEY MARKET OPPORTUNITIES	Cloud migration acceleration, Hybrid cloud integration demands, Enhanced data security solutions, Energy-efficient infrastructure needs, Compliance and regulatory requirements.
KEY MARKET DYNAMICS	cloud adoption surge, cost efficiency demands, regulatory compliance pressures, hybrid solutions preference, data security concerns
COUNTRIES COVERED	US, Canada