The US data center colocation market is on a steep growth path, projected to reach 85.18 billion dollars by 2031 from 43.71 billion dollars in 2025, a compound annual growth rate of 11.76 percent, according to Arizton. Supporting that expansion is an estimated 461.62 billion dollars in cumulative investment expected across the 2026 through 2031 period.

Near-term growth is running even faster. The colocation market is expected to increase 16.5 percent in 2026 to reach 46.84 billion dollars, extending a stretch of consistent expansion that recorded a 15.2 percent compound annual growth rate from 2021 through 2025. Capacity is scaling alongside revenue, with US colocation inventory climbing 22 percent quarter over quarter in the first quarter of 2026 to 29.0 gigawatts, a 48 percent increase year over year.

Artificial intelligence workloads are the central force behind the numbers. As operators race to add compute for AI training and inference, leasing conditions have tightened and pricing power has shifted toward providers. Market analysts describe sustained tightness and competitive leasing throughout 2026.

The investment figures place data center colocation among the largest infrastructure categories in the country, drawing capital from established operators such as Equinix and Digital Realty alongside newer entrants and AI-focused developers expanding capacity to meet demand that continues to outpace supply.

Source: Arizton - https://www.prnewswire.com/news-releases/us-data-center-colocation-market-size-to-reach-usd-85-18-billion-by-2031--backed-by-usd-461-62-billion-in-cumulative-investments--arizton-302820673.html