The United States data center market is on track to exceed $200 billion in annual revenue by 2029, according to market data compiled by Statista. Revenue for the U.S. market reached an estimated $109 billion in 2024 and is projected to grow at a compound annual rate of approximately 13 percent through the end of the decade.

Colocation services represent the largest segment of the U.S. data center market, generating more than $40 billion in annual revenue. Hyperscale cloud operators, including the major technology platform companies, account for the largest share of total capacity expansion, while enterprise operators and colocation providers make up the remainder.

Average data center construction costs have climbed sharply since 2022. The cost to build one megawatt of critical IT load now ranges from $12 million to $18 million in high-demand markets, up from roughly $7 million to $9 million before the current AI infrastructure buildout accelerated.

Vacancy rates in established U.S. markets, including Northern Virginia, Silicon Valley, and Chicago, have dropped to historic lows. New supply coming online across secondary markets, including the Southeast and Mountain West, has not kept pace with demand from hyperscalers and large enterprise tenants.

Power availability has emerged as the primary constraint on new data center development across most U.S. markets. Projects in states including Georgia, Texas, and Virginia face utility interconnection queues extending two to five years for substations capable of serving large campus requirements.

Source: Statista -- https://www.statista.com/outlook/tmo/data-center/united-states