U.S. Data Center Colocation Market Size to Reach USD 85.18 Billion by 2031, Backed by USD 461.62 Billion in Cumulative Investments | Arizton

The report provides comprehensive analysis across the Southeastern, Southwestern, Western, Midwestern, and Northeastern U.S. regions.

CHICAGO, July 8, 2026 /PRNewswire/ -- Arizton's latest report highlights that the U.S. data center colocation market is expected to attract nearly USD 462 billion in cumulative investments during 2026–2031, reflecting sustained demand for hyperscale expansion, AI-ready infrastructure, and enterprise cloud capacity. Valued at USD 43.71 billion in 2025, the market is projected to reach USD 85.18 billion by 2031, growing at a CAGR of 11.76%. The South-Eastern U.S. is expected to attract approximately USD 127.84 billion, accounting for around 28% of total investments.

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Browse in-depth TOC on the US Data Center Colocation Market

Pages- 194
Region- 1
Company- 66
Segment-9

US Data Center Colocation Market Summary

Market Size by Investment 2031: USD 85.18 Billion

Market Size by Investment 2025: USD 43.71 Billion

CAGR - Investment (2025-2031): 11.76%

Market Size - Colocation Revenue 2031: USD 46.90 Billion

Market Size Area (2031): 30.02 million sq. feet

Power Capacity (2031): 7,542 MW

Base Year: 2021

Forecast Year: 2026-2031

Major Developments Highlight Intensifying Competition in U.S. Colocation

• EdgeCore Digital Infrastructure's USD 17 billion investment in a 1.1 GW Virginia campus underscores the growing scale of hyperscale and AI infrastructure projects across the U.S. data center colocation market.
• STACK Infrastructure and Silver Companies' USD 10 billion campus in Fredericksburg highlights continued capital concentration in Virginia, where demand for large-scale AI and cloud capacity remains strong.
• Sabey Data Centers' planned USD 4 billion development in Indianapolis signals expanding investor interest in emerging colocation markets beyond established hyperscale hubs.
• SoftBank's USD 3 billion investment to convert an Ohio EV factory into a modular data center equipment facility for OpenAI reflects growing investment across the AI infrastructure supply chain, extending beyond traditional data center construction

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High-Density Infrastructure Becomes the New Colocation Standard

The U.S. data center colocation market is entering a new infrastructure investment cycle as artificial intelligence increases demand for hyperscale AI capacity. While current AI investments have not yet matched the pace of hyperscale expansion, the capacity dedicated to AI workloads is expected to almost triple over the next five to six years. New colocation facilities are being designed to support high-density AI workloads powered by GPUs, ASICs, and FPGAs, enabling faster AI model training and real-time inference. These computing architectures require significantly higher power densities than conventional enterprise workloads, increasing demand for power capacity and advanced cooling infrastructure. Higher rack densities are also driving investments in liquid cooling, high-capacity electrical systems, and AI-ready facility designs, making infrastructure readiness a key competitive advantage for providers seeking long-term hyperscale and enterprise AI deployments.

Carbon-Neutral Infrastructure Moves to the Forefront of Colocation Investment

Sustainability is becoming a strategic investment priority in the U.S. data center colocation market as AI and cloud workloads continue to increase electricity demand. Beyond reducing carbon emissions, access to renewable energy is increasingly influencing capacity expansion, project approvals, and long-term hyperscale deployments. This shift is prompting colocation operators to secure long-term power purchase agreements (PPAs), invest in on-site solar and wind generation, and deploy battery energy storage systems to strengthen energy resilience and support AI-ready infrastructure. Industry leaders are also raising their decarbonization commitments, with Equinix and CyrusOne targeting carbon neutrality by 2030 through carbon-free renewable energy. These initiatives reflect a broader market shift, where sustainability is becoming a key factor in meeting ESG expectations, addressing regulatory requirements, and securing future colocation investments.

Capital Concentrates in the U.S.'s Largest Colocation Hubs

Capital continues to concentrate in the U.S.'s largest colocation hubs, where available power, network connectivity, and hyperscale demand are supporting multi-billion-dollar investment pipelines. The South-Eastern U.S. is projected to attract more than USD 15.04 billion in 2025, while the South-Western U.S. follows closely with over USD 14.95 billion. Looking ahead, the South-East is expected to add around 13,628 MW of new power capacity through 2031, underlining its role in the next phase of hyperscale expansion. Northern Virginia remains the industry's benchmark with more than 4 GW of operational colocation capacity, while Texas and Arizona account for over 90% of South-Western investments. In the New York–New Jersey market, vacancy rates below 6% continue to reflect robust enterprise and connectivity-driven demand despite ongoing capacity additions.

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Leading Companies in the U.S. Data Center Colocation Market

Prominent Colocation Operators

• Applied Digital
• CyrusOne
• DataBank
• Digital Realty
• Equinix
• NTT DATA
• QTS Realty Trust
• Vantage Data Centers

Other Prominent Colocation Operators

• AAIM Data Centers
• Aligned Data Centers
• American Tower
• AUBix
• Csquare
• CloudHQ
• Cologix
• Compass Datacenters
• COPT Data Center Solutions
• Core Scientific
• Centra
• Crusoe
• DC BLOX
• DigiPowerX (DigiHost)
• EdgeConneX
• Edged
• EdgeCore Digital Infrastructure
• Element Critical
• FifteenFortySeven Critical Systems Realty (1547)
• Flexential
• H5 Data Centers
• HostDime
• Hut 8
• Iron Mountain
• Netrality Data Centers
• Novva Data Centers
• PowerHouse Data Centers
• Prime Data Centers
• RadiusDC
• Sabey Data Centers
• Skybox Datacenters
• STACK Infrastructure
• Stream Data Centers
• Switch
• T5 Data Centers
• TierPoint
• WhiteFiber
• Yondr
• 365 Data Centers
• 5C Data Centers

New Entrants

• Ada Infrastructure
• Ardent Data Centers
• Beale infrastructure
• Big Sky Digital Infrastructure
• CleanArc Data Centers
• CloudBurst Data Centers
• Colovore
• Crane Data Centers
• Fleet Data Centers
• Lambda
• LightHouse Data Centers
• Metroblocks
• NE Edge
• Penzance
• Prometheus Hyperscale
• Related digital
• Rowan Digital Infrastructure
• Tract

What Key Findings Will Our Research Analysis Reveal?

• How big is the U.S. data center colocation market?
• What is the growth rate of the U.S. data center colocation market?
• What are the key trends in the U.S. data center colocation market?
• What is the estimated market size in terms of area in the U.S. data center colocation market by 2031?
• How much MW of power capacity is expected to reach the U.S. data center colocation market by 2031?

Discover Connected Market Opportunities:

U.S. Data Center Market Landscape 2026-2031

U.S. Data Center Construction Market – Industry Outlook & Forecast 2026-2031

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