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Data Center market in the US to reach 101 billion by 2027; Arizton

Data Center

The Data Center market in the US will grow at a CAGR of over 2% during the period 2022−2027. According to a forecast by advisory and intelligence firm Arizton, the market will reach by 2027 a size of 101,45 billion.

Firstly, in 2021 alone, the US data center market witnessed over 110 new/expansion projects. The western US dominated the market with an investment share of over 30%. The increased adoption of advanced technology such as artificial intelligence, IoT, big data, cloud computing; and growing coverage of 5G will be major demand drivers in the forecast period.

Moreover, the major investors in the US were Facebook, Microsoft, and Amazon Web Services (AWS). In fact, in early December, Amazon announced the addition of 189 new renewable energy projects globally to meet the need of AWS’ growing Data Center footprint. As a result, Amazon turned into the biggest corporate buyer of renewable electricity globally.

On the other hand, according to Aritzon, colocation operators who invested in the US in 2021 included Digital Realty; Equinix, QTS Realty Trust, Switch; Vantage Data Centers, CyrusOne; and NTT Global Data Centers, among others.

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Data Center market meet with renewable energy

Furthermore, the US market also witnessed the entry of several new entrants, including Cirrus Data Services; DāSTOR, Novva, and Yondr, that will to add to the market growth in coming years. In fact, Yondr has acquired land in Loudoun and Prince William Counties, Virginia for data center development.

In addition, many state and local governments, to attract data center investment, offer investment and sales tax incentives focused on effective data center operations and renewable energy procurement. For instance, Prince Edward County in Virginia has lowered the data center tax on the equipment used in data centers.

In Virginia we also witnessed the partnering of the AES Corporation with Microsoft to bring clean energy to its data centers in the state. Under the arrangement, the AES Corporation will deliver around-the-clock renewable energy to Microsoft’s data centers in the region for 15 years.

Finally, hyperscale and colocation operators are taking initiatives to increase the share of renewable energy in their operations. AWS has announced 11 renewable energy projects in the US, with the first set of solar projects in Arkansas, Mississippi, and Pennsylvania, and additional projects in Illinois, Kentucky, Indiana, and Ohio.

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