Americas Data Center Colocation Market Size, Share, Trends And Forecast 2026-2031 AI And Cloud Demand Drive 12.13% CAGR And $53.66 Billion Revenue By 2031
Dublin, Oct. 05, 2026 (GLOBE NEWSWIRE) -- "Americas Data Center Colocation Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Americas data center colocation market size by investment is projected to grow at a CAGR of 12.13% from 2025-2031. Expansion will be supported by hyperscale leasing, enterprise cloud adoption, artificial intelligence, GPU-accelerated computing, and high-performance computing workloads. By 2031, the market footprint is expected to reach 32.36 million sq. ft., while colocation revenue is forecast to total approximately USD 53.66 billion.
Operators are acquiring land and securing access to critical power infrastructure to establish long-term development pipelines. Although Northern Virginia remains the largest colocation hub, investment is spreading to markets including Seattle, Dallas, Reno, Winnipeg, Quebec City, Santiago, Bogota, Queretaro, and Sao Paulo. Chile, Colombia, Mexico, Argentina, and other Latin American markets are also gaining prominence as operators pursue renewable energy, connectivity, land, and geographic diversification.
Power Capacity and AI Infrastructure Investment
The Americas data center colocation market is forecast to add approximately 8,141 MW of power capacity by 2031. AI-ready campuses require higher rack densities, liquid cooling, expanded utility capacity, and resilient electrical systems. Operators are responding with renewable energy PPAs, on-site generation, BESS, fuel cells, and low-carbon backup power.
Major AI-focused investments include Vantage Data Centers' $3 billion, 224 MW NV1 campus in Reno, Nevada, and Flexential's 13 MW deployment for CoreWeave in Plano, Texas. Core Scientific is also expanding to more than 260 MW of critical IT load for CoreWeave's AI infrastructure. Partnerships such as Ascenty and Vertical Data are extending GPU-ready, liquid-cooling-enabled capacity across Brazil, Chile, Mexico, and Colombia.
Cooling infrastructure is evolving alongside these deployments. Liquid-based cooling is projected to record a CAGR of 17.84% during the forecast period as operators adopt direct-to-chip liquid cooling, immersion cooling, free cooling, and AI-driven controls. CRAC & CRAH Units retained the largest cooling-system share in 2025, while cooling systems led the mechanical infrastructure segment.
Colocation Revenue and Service Segmentation
The US will continue to generate most regional colocation revenue, supported by extensive interconnection ecosystems and sustained hyperscale investment. Wholesale colocation is expected to be the fastest-growing service segment as cloud and AI customers secure large blocks of capacity. Retail colocation represented approximately 57% of the market in 2025, reflecting enterprise demand for scalable rack space, power, bandwidth, cloud connectivity, and interconnection services.
Latin America is positioned for faster percentage growth. Colombia is projected to achieve the highest revenue CAGR at approximately 29%, followed by Mexico. Brazil accounts for nearly 60% of the Latin American data center colocation market, while Chile represents approximately 14% of regional investment. Argentina's colocation investment is forecast to increase at a CAGR of 27.45%.
Cloud Connectivity and Submarine Cable Development
Cloud-based services remain a central growth driver. AWS, Microsoft Azure, Google Cloud, IBM Cloud, and Oracle Cloud continue to expand infrastructure and network availability throughout the region. Colocation providers including Equinix, Digital Realty, Cologix, QTS Data Centers, and Flexential support direct access to cloud platforms, strengthening hybrid- and multi-cloud deployments.
Submarine cable investment is reinforcing the Americas digital infrastructure ecosystem. Miami, Virginia Beach, Myrtle Beach, and Fortaleza are attracting colocation development because of their proximity to cable landing stations. DC BLOX has integrated subsea connectivity with colocation capacity in Myrtle Beach, while MDC Data Centers is developing facilities in Cancun and Veracruz to support the MANTA submarine cable. Additional projects include V.tal's 6,027-mile Brazil-US Synapse cable, Millicom's TAM-1 integration, and Claro's AMX-1 landing point in Puerto Rico.
Renewable Energy and Sustainable Data Center Operations
Renewable energy procurement is accelerating as AI and cloud workloads increase electricity consumption. Equinix sourced approximately 2.84 TWh of renewable electricity across the Americas in 2025. Ascenty entered an agreement with Casa dos Ventos to secure an average of 110 MW for its Brazilian data centers.
Elea Data Centers' BEL1 facility in Belem is designed to operate on 100% renewable energy, while QScale uses hydroelectric power and free cooling at its Quebec campus. Digital Realty and CloudHQ have adopted HVO for backup generation, and Equinix has deployed Bloom Energy fuel cells at multiple facilities. Digital Realty expects the use of HVO at PDX12, SC1, and LAX12 to reduce CO? emissions by approximately 12,000 metric tons.
Market Constraints
Power availability, grid stability, construction costs, and equipment lead times remain significant barriers to development. PJM has warned of a potential 60 GW power shortfall over the next decade, while AEP's contracted capacity pipeline has reached 63 GW, with approximately 90% linked to data center demand. A July 2026 transmission outage in Northern Virginia disconnected facilities from the PJM grid and removed more than 3 GW of load.
Latin American markets face transmission limitations despite strong renewable resources. Chile curtailed more than 6,084 GWh of renewable energy in 2025 because of grid constraints. Across the Americas, competition for power-connected land is increasing development costs in Northern Virginia, Sao Paulo, Bogota, Queretaro, and other major hubs.
Construction costs have risen by approximately 3-5% across leading markets due to higher material, labour, electrical equipment, cooling, and energy expenses. Mexico's data center construction costs ranged from approximately $10.0 million to $10.5 million per MW in 2025. Operators are securing electricity contracts, substations, renewable PPAs, on-site generation, and BESS earlier in the development cycle to improve resilience and cost predictability.
Regional Market Outlook
- US: The world's largest and most mature colocation market continues to attract infrastructure funds, private equity firms, hyperscalers, and real estate investors. Equinix, Digital Realty, QTS Data Centers, CoreSite, CyrusOne, and Flexential maintain extensive US operations. Canada: Investment is projected to grow at a CAGR of 20.77%, supported by low-carbon electricity, efficient cooling conditions, domestic data-hosting requirements, and rising AI demand. Brazil: Sao Paulo, Campinas, and Rio de Janeiro remain major development areas, supported by land availability, digital transformation, IoT adoption, and demand for hyperscale capacity. Mexico: Proximity to the US, cloud adoption, and expanding digital infrastructure are supporting continued investment despite elevated construction costs. Chile: Solar and wind resources are strengthening the country's position as a destination for sustainable hyperscale and colocation development. Colombia: Bogota remains the principal hub, with cloud adoption, local data-hosting demand, connectivity, and renewable power supporting expansion. Argentina: Competitive electricity costs and renewable energy potential are creating opportunities for future hyperscale and colocation capacity.
Recent Data Center Colocation Developments
- In January 2026, Equinix announced an investment of more than $836 million in its Dallas 12 campus. The project includes two four-story buildings totalling more than 372,000 square feet, with construction scheduled through 2028. Vantage Data Centers committed more than $350 million in 2025 to develop QC24 at its Quebec City campus. The facility will add 32 MW and increase total campus capacity to 86 MW. In September 2025, Ascenty launched the 16 MW SCL03 facility in Santiago following an investment of approximately $114 million. The site uses 100% renewable energy and closed-loop cooling. In February 2026, Actis-backed Terranova launched its first facility in Queretaro for AI workloads, cloud services, and mission-critical applications. In July 2026, QTS Data Centers announced plans for up to 11 buildings across approximately 465 acres at Lancium's Clean Campus in Hall County, Texas. The development is backed by a 1 GW grid connection and could attract more than $10 billion in capital investment.
Competitive Landscape
The Americas data center colocation market includes established operators, regional providers, hyperscale developers, and new infrastructure platforms. Key investors include Applied Digital, Aligned Data Centers, Cirion Technologies, Cologix, CloudHQ, Compass Datacenters, CyrusOne, DataBank, Digital Realty, Elea Data Centers, Equinix, eStruxture Data Centers, KIO Data Centers, NTT DATA, QScale, QTS Data Centers, Scala Data Centers, STACK Infrastructure, and Vantage Data Centers.
New entrants such as Ada Infrastructure, Ardent Data Centers, Beacon Data Centers, CleanArc Data Centers, Crane Data Centers, Data District, Fleet Data Centers, Lambda, Layer 9 Data Centers, Prometheus Hyperscale, Rowan Digital Infrastructure, TECfusions, Terranova, and Tract are expanding competition. Market participants are prioritizing AI-ready facilities, hyperscale campuses, renewable energy procurement, advanced cooling, carrier-neutral connectivity, and access to power-rich development sites.
Market Segmentation
The market is analyzed by retail and wholesale colocation services; electrical, mechanical, and general construction infrastructure; air-based and liquid-based cooling; and Tier I & II, Tier III, and Tier IV standards. General construction held the largest infrastructure share in 2025, with core & shell development contributing approximately 48%. UPS systems represented around 28% of electrical infrastructure, while Tier III facilities led the market. Continued demand for fault-tolerant environments is also supporting Tier IV development across the US, Canada, Mexico, Colombia, and Chile.
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