(MENAFN- GlobeNewsWire - Nasdaq) Growth is driven by AI and cloud workloads, hyperscale expansion, GPU adoption, liquid cooling, high-density infrastructure, and renewable energy initiatives. The Southeastern U.S. leads investment, followed by the Southwest.Dublin, Sept. 01, 2026 (GLOBE NEWSWIRE) -- The "U.S. Data Center Colocation Market - Industry Outlook & Forecast 2026-2031" has been added to ResearchAndMarkets.com's offering.
The U.S. data center colocation market was valued at USD 43.71 billion in 2025 and is projected to reach USD 85.18 billion by 2031, expanding at a compound annual growth rate of 11.76%. Growth is being driven by artificial intelligence, cloud computing, hyperscale expansion, high-density computing, renewable energy adoption, and continued investment in advanced power and cooling infrastructure.
Artificial Intelligence Reshapes Data Center Infrastructure
AI adoption is transforming data center design and capacity requirements across the United States. Capacity dedicated to AI workloads is expected to nearly triple over the next five to six years, increasing demand for GPU-ready facilities, high-density racks, advanced electrical systems, and liquid-cooling technologies.
In May 2025, NTT DATA announced plans to deliver more than 370 MW of new capacity, launch 10 data centers, and support over 200 MW of AI workloads. The expansion includes liquid-cooling deployments and facilities engineered for high-density AI applications. In January 2025, the U.S. administration unveiled Stargate, a private-sector-led AI infrastructure initiative associated with OpenAI and backed by planned investment of up to USD 500 billion over four years.
Texas remains a major destination for AI and high-performance computing projects. In March 2025, Crypto and IREN announced plans for a 75 MW liquid-cooled AI data center at IREN's Childress site. The facility is expected to support rack densities of up to 200 kW through direct-to-chip cooling for NVIDIA Blackwell GPUs.
Renewable Energy and Sustainability Gain Strategic Importance
Rising AI and cloud workloads are increasing electricity requirements, placing sustainability, grid availability, water management, and emissions reduction at the center of data center investment decisions. Operators are expanding renewable energy procurement and implementing efficiency programs to address regulatory, community, and investor expectations.
In August 2025, Soluna exceeded 1 GW of clean computing capacity following the launch of wind- and solar-powered facilities in Texas. In July 2025, Digital Realty reported that renewable sources supplied 75% of its global electricity requirements, supported by 1.5 GW of contracted renewable energy capacity. The company also matched 185 data centers with 100% renewable energy and achieved ENERGY STAR certification across 69% of its managed U.S. portfolio. Equinix and CyrusOne have separately announced carbon-neutrality targets for 2030.
Power, Cooling, and Construction Investment Expands
The U.S. data center colocation market includes retail and wholesale colocation, with infrastructure investment spanning electrical systems, mechanical systems, and general construction. Key electrical categories include UPS systems, generators, transfer switches, switchgear, and power distribution units. Nickel-zinc and sodium-ion batteries are gaining market attention, while operators continue to deploy redundant utility feeds and backup generation.
Mechanical infrastructure includes cooling systems, racks, and supporting equipment. As GPU-dense clusters exceed the capabilities of conventional air cooling, adoption of direct-to-chip and other liquid-based cooling systems is rising. Construction demand covers core-and-shell development, engineering, commissioning, fire suppression, physical security, and DCIM/BMS solutions. The market serves Tier I and II, Tier III, and Tier IV facilities.
Southeastern and Southwestern U.S. Lead Investment
The Southeastern U.S., including Virginia, Georgia, and North Carolina, led regional data center investment with more than USD 15.04 billion in 2025. The region is projected to add approximately 13,628 MW of power capacity between 2026 and 2031. The Southwestern U.S. followed with investments exceeding USD 14.95 billion, led by Texas and Arizona, while the Midwest accounted for approximately USD 6.07 billion.
Demand also remains strong in the New York-New Jersey market, where vacancy has fallen below 6%. The region continues to benefit from its role as a major connectivity and financial-services hub. However, local permitting, power availability, and community opposition may influence future development decisions in several markets.
Competitive Landscape
Prominent U.S. data center colocation operators include Applied Digital, CyrusOne, DataBank, Digital Realty, Equinix, NTT DATA, QTS Realty Trust, and Vantage Data Centers. Other active operators include Aligned Data Centers, Cologix, Compass Datacenters, Core Scientific, Crusoe, EdgeConneX, Flexential, Iron Mountain, STACK Infrastructure, Switch, TierPoint, Yondr, and 365 Data Centers.
New market entrants include Ada Infrastructure, Ardent Data Centers, CleanArc Data Centers, CloudBurst Data Centers, Crane Data Centers, Fleet Data Centers, Lambda, LightHouse Data Centers, Prometheus Hyperscale, Related Digital, Rowan Digital Infrastructure, and Tract.
In August 2025, Vantage Data Centers announced an investment exceeding USD 25 billion for its Frontier campus in Shackelford County, Texas. The planned 1,200-acre, 1.4 GW development will include 10 data centers totaling approximately 3.7 million square feet and is designed to support rack densities of 250 kW and above. The project highlights the accelerating shift toward AI- and high-performance-computing infrastructure across the U.S. data center colocation market.
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