The United States data center colocation market is projected to reach $46.84 billion in 2026, a 16.5 percent increase over the prior year. The segment recorded a compound annual growth rate of 15.2 percent across the 2021 through 2025 period, indicating that the current expansion continues an established trend rather than marking a break from it.

Longer-range projections carry the colocation market from $40.21 billion in 2025 to approximately $72.37 billion by the end of 2030. Analysts attribute the trajectory to three drivers: artificial intelligence and graphics processing unit workload demand, hyperscaler capacity build-out, and continued enterprise adoption of hybrid multi-cloud architectures. Equinix and Digital Realty lead the segment, with QTS, Iron Mountain, and dedicated AI developers accelerating capacity additions.

Colocation represents a portion of a considerably larger total. The United States is projected to generate $168.51 billion in overall data center market revenue during 2026, the highest of any national market.

Equipment spending has grown faster still. Data center systems spending rose 48.8 percent in 2025 and is forecast at $582.45 billion globally for 2026, a figure that captures the hardware refresh cycle accompanying AI deployment.

Regional supply conditions remain tight. Atlanta ended the first quarter of 2026 with vacancy near 1 percent, with facilities under construction leasing before completion.

Source: Statista and Research and Markets - https://www.statista.com/outlook/tmo/data-center/worldwide/