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    US Hyperscale Data Center Market

    ID: MRFR/ICT/59016-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    US Hyperscale Data Center Market Research Report By Type (Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, Managed Data Centers), By Service Type (Infrastructure as a Service, Platform as a Service, Software as a Service), By End User (IT Services, Telecommunications, Web Services, Financial Services, Healthcare) and By Cooling Technology (Air-based Cooling, Liquid Cooling, Evaporative Cooling) - Forecast to 2035

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    US Hyperscale Data Center Market Infographic
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    US Hyperscale Data Center Market Summary

    The US Hyperscale Data Center market is poised for substantial growth, projected to reach 24.5 USD Billion by 2035 from a base of 11.5 USD Billion in 2024.

    Key Market Trends & Highlights

    US Hyperscale Data Center Key Trends and Highlights

    • The market valuation is expected to grow from 11.5 USD Billion in 2024 to 24.5 USD Billion by 2035.
    • A compound annual growth rate of 7.12 percent is anticipated for the period from 2025 to 2035.
    • The increasing demand for cloud computing services is likely to drive market expansion.
    • Growing adoption of advanced data management technologies due to the rising need for efficient data processing is a major market driver.

    Market Size & Forecast

    2024 Market Size 11.5 (USD Billion)
    2035 Market Size 24.5 (USD Billion)
    CAGR (2025-2035) 7.12%

    Major Players

    CyrusOne, Digital Realty, Amazon, Google, Microsoft, Facebook, IBM, Equinix, Alibaba

    US Hyperscale Data Center Market Trends

    Numerous important market factors are causing major changes in the US Hyperscale Data Center Sector. As businesses look for effective ways to manage enormous volumes of data, the growing demand for cloud services and data storage is driving growth. Hyperscale data centers are perfect for big businesses and IT giants because they offer increased scalability and flexibility. The increasing use of cutting-edge technologies like artificial intelligence (AI), machine learning, and the Internet of Things (IoT), which depend on a strong data infrastructure to support their features, is another contributing reason.

    Operators are giving data security and privacy protection top priority as regulatory requirements get stricter. Additionally, businesses are looking for more robust and dependable data center solutions as a result of the rapid requirement for expanded data capabilities brought on by remote work and digital transformation programs.In line with the needs of a digital-first economy, these trends emphasize the continued expansion of hyperscale data centers and the dynamic changes within the US market.

    Market Segment Insights

    Hyperscale Data Center Market Type Insights  

    The US Hyperscale Data Center Market has seen significant developments across various types, including Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, and Managed Data Centers. Each of these types plays a crucial role in shaping the market landscape and addressing the diverse needs of businesses. Colocation Data Centers provide businesses with the necessary physical space and infrastructure to host their servers, creating an environment that supports scalability and efficiency. This segment benefits greatly from increased demand for reliable and secure storage solutions due to the growing complexity of IT infrastructures.

    Cloud Data Centers are on the rise due to the ongoing digitization trend and the increasing reliance on cloud services. The shift to cloud-based operations enables organizations to reduce costs and enhance flexibility, thus representing a major area of growth within the market. Enterprises are gaining a competitive edge from utilizing Cloud Data Centers, as they allow for rapid scalability and global reach without the heavy capital investment associated with traditional data centers.

    Enterprise Data Centers, often owned and operated by individual organizations, are critical for maintaining control over computing resources. They serve as the backbone of many businesses' IT operations, catering to specific needs such as data security and compliance. The continued focus on data privacy regulations and the preference for in-house data management solutions solidify the significance of this type.

    Managed Data Centers represent a strategic choice for businesses looking to outsource their data management responsibilities while still ensuring operational efficiency. They allow organizations to leverage expert management and support services, alleviating the burden of technical maintenance and enabling companies to focus more on their core objectives. This type is gaining traction among businesses looking to enhance operational performance without excessive administrative strain.The ongoing transformation in the IT landscape in the US is driving innovations and efficiencies within these types.

    The demand for data storage and processing capabilities continues to rise, propelled by the need for real-time data analysis and the increasing adoption of IoT technologies. As the market evolves, trends such as enhanced energy efficiency and sustainable practices are becoming pivotal in the decision-making process for businesses across all types.

    Hyperscale Data Center Market Service Type Insights  

    The Service Type segment of the US Hyperscale Data Center Market plays a crucial role in shaping the industry landscape, consisting mainly of Infrastructure as a Service, Platform as a Service, and Software as a Service. Each service type holds its unique significance, with Infrastructure as a Service being essential for providing scalable computing resources on demand, thus allowing businesses to reduce operational costs and enhance flexibility.

    Platform as a Service facilitates rapid application development and deployment, supporting innovation in various sectors of the US economy, while Software as a Service offers user-friendly applications that streamline business operations.The evolving demand for cloud-based services is driven by factors such as the increasing need for data storage, enhanced performance, and cost efficiency, contributing to the overall growth in the US Hyperscale Data Center Market. Furthermore, as organizations migrate to cloud solutions for business continuity and agility, these service types are expected to dominate, making them significant pillars of the market's expansion and transformation.

    With the growing reliance on digital services and big data analytics, the interplay between these service types is poised to drive substantial advancements in the industry.

    Hyperscale Data Center Market End User Insights  

    The End User segment of the US Hyperscale Data Center Market encompasses various industries, showcasing the versatility and adaptability of hyperscale data centers in catering to diverse operational needs. Within this segment, IT Services play a crucial role as organizations increasingly rely on cloud-based solutions for data management and application hosting. Telecommunications is another significant contributor, as the demand for high-speed connectivity and data processing capabilities surges with the proliferation of mobile devices and IoT technologies.Web Services, often characterized by their significant traffic and storage needs, represent a rapidly growing area due to the rise of e-commerce and online platforms.

    Additionally, Financial Services rely heavily on hyperscale data centers for robust security, compliance, and efficient transaction processing, contributing to the industry's ongoing digital transformation. Healthcare also stands out in the End User segment, utilizing hyperscale infrastructures to handle vast amounts of sensitive patient data while ensuring regulatory compliance and data integrity.The convergence of these sectors within the US Hyperscale Data Center Market reflects a broader trend toward digitalization, emphasizing the importance of efficient, scalable, and secure data storage and processing solutions.

    Collectively, these industries contribute to a robust market landscape that underscores the strategic role of hyperscale data centers in supporting the evolving needs of the US economy.

    Hyperscale Data Center Market Cooling Technology Insights  

    The Cooling Technology segment of the US Hyperscale Data Center Market plays a crucial role in maintaining optimal operational efficiency and reliability in high-capacity computing environments. As data demands escalate, technologies such as Air-based Cooling, Liquid Cooling, and Evaporative Cooling have emerged as effective solutions to dissipate heat generated by servers. Air-based Cooling remains prevalent due to its simplicity and cost-effectiveness, while Liquid Cooling is gaining traction for its efficiency in high-density setups, allowing for greater cooling capacity in smaller footprints.Evaporative Cooling is also becoming increasingly significant as it provides energy savings and reduced environmental impact, aligning with sustainability goals.

    These technologies contribute to vital operational capabilities, addressing challenges such as energy consumption and thermal management. With rising energy costs and stringent environmental regulations in the US, the adoption of advanced cooling solutions driven by innovative technologies is expected to reshape the industry dynamics and enhance overall market growth.

    Get more detailed insights about US Hyperscale Data Center Market

    Key Players and Competitive Insights

    The US Hyperscale Data Center Market is characterized by rapid growth and intense competition as demand for cloud services and data management continues to surge. Companies in this space are focused on enhancing their operational efficiencies while also meeting the requirements of large-scale customers who rely on them for performance, scalability, and reliability. This market has been driven by technological advancements and an increased need for high-capacity and secure data storage solutions, leading to a diverse ecosystem of providers, each with unique strengths and strategies.

    Mergers and acquisitions also mark the competition, as firms look to expand their market presence and enhance capabilities through strategic partnerships and integrations. CyrusOne stands out in the US Hyperscale Data Center Market with its robust portfolio of data centers designed to support mission-critical applications. The company has made significant investments in expanding its footprint across key US markets, which has enhanced its capabilities in delivering high-performance solutions tailored to hyperscale customer needs. CyrusOne emphasizes colocation and wholesale data center services that provide customizable infrastructure, which is attractive to large enterprises and cloud service providers.

    Its strengths lie in operational efficiency, advanced security measures, and a commitment to sustainability practices in its data center operations. Additionally, the company leverages its strategic locations to offer low-latency solutions that further solidify its reputation among hyperscale users.Digital Realty also holds a prominent position in the US Hyperscale Data Center Market, recognized for its extensive global platform and highly interconnected data centers. The company offers a range of key services, including colocation, interconnection, and cloud services, which cater to a diverse clientele that includes cloud and IT service providers, network operators, and enterprises.

    Digital Realty's strengths are bolstered by its strategic mergers and acquisitions that allow it to expand its service offerings and geographic reach. The company focuses on creating efficient, scalable infrastructure that meets varying customer demands, while also promoting sustainability through energy-efficient designs. Digital Realty's established relationships with major cloud service providers further enhance its market presence, making it a significant player in the competitive landscape of the US hyperscale data center market.

    Key Companies in the US Hyperscale Data Center Market market include

    Industry Developments

    The US Hyperscale Data Center Market has witnessed significant recent developments, particularly with major players like Digital Realty and Amazon announcing expansions to meet increasing demand for cloud services. In January 2023, Digital Realty revealed plans for a new data center facility in Dallas to enhance capacity for its enterprise customers. Similarly, in February 2023, Amazon Web Services unveiled a strategic initiative to increase its footprint in Northern Virginia, which is a key hub for data center operations.

    Major acquisition activities have also marked the landscape, with CoreSite being acquired by American Tower in December 2022, enhancing its position in the data center space. In terms of market growth, the overall valuation in the sector has surged, primarily driven by the rise in cloud computing and digital transformation initiatives across industries. This trend has attracted investments from various companies, including Microsoft and Google, as they seek to expand their infrastructure capabilities. Collaborative projects among these companies are becoming common, indicated by Nvidia's partnership with Oracle to optimize workloads on their respective platforms.

    These developments reflect the rapid evolution and competitive nature of the US Hyperscale Data Center Market in recent years.

    Market Segmentation

    Hyperscale Data Center Market Type Outlook

    • Colocation Data Centers
    • Cloud Data Centers
    • Enterprise Data Centers
    • Managed Data Centers

    Hyperscale Data Center Market End User Outlook

    • IT Services
    • Telecommunications
    • Web Services
    • Financial Services
    • Healthcare

    Hyperscale Data Center Market Service Type Outlook

    • Infrastructure as a Service
    • Platform as a Service
    • Software as a Service

    Hyperscale Data Center Market Cooling Technology Outlook

    • Air-based Cooling
    • Liquid Cooling
    • Evaporative Cooling

    Report Scope

    Report Attribute/Metric Details
    Market Size 2018 10.35(USD Billion)
    Market Size 2024 11.5(USD Billion)
    Market Size 2035 24.5(USD Billion)
    Compound Annual Growth Rate (CAGR) 7.118% (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 CyrusOne, Digital Realty, Amazon, Google, CoreSite, Microsoft, Facebook, IBM, Equinix
    Segments Covered Type, Service Type, End User, Cooling Technology
    Key Market Opportunities Increased cloud service demand, Expansion of edge computing, Enhanced energy efficiency solutions, Investment in AI and ML capabilities, Growing sustainability initiatives
    Key Market Dynamics increased cloud adoption, energy efficiency demands, infrastructure scalability, advancements in AI, competitive pricing strategies
    Countries Covered US

    FAQs

    What will the market size be by 2035?

    By 2035, the market size of the US Hyperscale Data Center Market is expected to reach 24.5 billion USD.

    What is the expected CAGR for the US Hyperscale Data Center Market between 2025 and 2035?

    The compound annual growth rate for the US Hyperscale Data Center Market is anticipated to be 7.118% from 2025 to 2035.

    What is the market value for Cloud Data Centers in 2035?

    In 2035, the Cloud Data Centers segment is expected to have a market value of 9.0 billion USD.

    Who are the major players in the US Hyperscale Data Center Market?

    Key players in the market include Amazon, Google, Microsoft, and Digital Realty, among others.

    What market share do Enterprise Data Centers have in 2024?

    The market value for Enterprise Data Centers is estimated at 2.5 billion USD in 2024.

    What challenges does the US Hyperscale Data Center Market face?

    The market faces challenges such as infrastructure costs and energy efficiency demands.

    What is the expected growth rate for Managed Data Centers from 2025 to 2035?

    Managed Data Centers are projected to grow to 3.5 billion USD by 2035 from 1.5 billion USD in 2024.

    How does the US Hyperscale Data Center Market respond to emerging trends?

    The market is actively adapting to trends such as increased cloud adoption and energy efficiency.

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