U.S. Data Center Market to Reach $494.49B by 2031, Growing at 8.75% CAGR

U.S. Data Center Market Set for Significant Growth by 2031

CHICAGO, June 3, 2026 /PRNewswire/ -- The U.S. data center market is poised for remarkable expansion, with the latest research by Arizton predicting investments reaching USD 494.49 billion by 2031. The market is projected to grow at a robust CAGR of 8.75% through the forecast period.

Explore the U.S. data center market analysis

Comprehensive Growth Outlook

The data center market in the U.S. will see a substantial increase from USD 298.97 billion in 2025, reflecting significant investment in digital infrastructure. By 2031, the market size in terms of area is expected to reach 52.57 million square feet, supported by a power capacity of 13,565 MW.

Investment and Expansion Drivers

U.S. data centers are entering a new phase of expansion driven by the increasing adoption of AI, leading to nearly USD 839 billion in cumulative investments from 2026 to 2031, excluding IT infrastructure. Notably, the South-Eastern U.S. is contributing about 30% of these investments.

Major hubs such as Northern Virginia, Silicon Valley, Chicago, Dallas-Fort Worth, and Phoenix remain key players, fueled by hyperscale and colocation expansion. These developments are increasingly influenced by factors like power access and infrastructure readiness.

Key Developments and Trends

• Renewable energy partnerships expanding: TotalEnergies has signed a 15-year PPA to supply Google with renewable energy, demonstrating the industry's push towards sustainable operations.
• Infrastructure investment surging: Oracle's planned USD 40 billion investment in NVIDIA chips highlights the growing demand for advanced computing infrastructure.
• Hyperscale growth in emerging markets: Google's new data center campuses in Oklahoma reflect the shift towards areas with better land and power availability.
• Regional diversification: AWS's USD 10 billion investment in Mississippi underscores the trend of expanding beyond traditional hubs.

Power Availability as a Growth Catalyst

Power availability is increasingly shaping the U.S. data center market's future. While Northern Virginia remains a leading hub, areas like Texas, Illinois, and Arizona are attracting investments due to enhanced energy access and infrastructure readiness. Time-to-power, utility readiness, and renewable energy availability are becoming critical in the development of new facilities.

Regional Market Dynamics

Virginia, Georgia, and North Carolina lead investments in the South-Eastern U.S. due to strong hyperscale activity, while the Mid-Western U.S. is gaining attention for its land and infrastructure advantages. Northern Virginia continues as the world's largest data center hub, supported by colocation and hyperscale ecosystems.

Emerging markets like Atlanta and Texas cities, including Dallas, Austin, and San Antonio, are gaining momentum with attractive land availability and reliable power infrastructure.

Learn more about the U.S. data center market

Infrastructure Innovations

The U.S. data center market is witnessing rapid changes in server infrastructure, driven by digital transformation and cloud adoption. Electrical advancements include UPS systems, generators, and switchgear with facilities adopting N+1 diesel generators for backup power. AI-driven workloads demand advanced cooling solutions, and next-generation UPS batteries like Nickel-Zinc and Sodium-Ion are gaining popularity.

Industry partnerships are enhancing cooling innovation, with the Switch–Schneider Electric agreement advancing power and chiller deployments.

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