The US data center market reached an estimated $122.08 billion in 2026 and is projected to grow to $168.34 billion by 2031, according to industry market research, an expansion driven largely by artificial intelligence and hybrid cloud adoption. The compound annual growth rate over that period works out to roughly 6.6 percent, though other measures of the market show even steeper trajectories depending on scope.

Colocation, where operators lease space and power to enterprises rather than building their own facilities, is a fast-growing segment. The US colocation market was valued near $46.84 billion in 2026 and is projected to reach $72.37 billion by 2030, growing at about an 11.5 percent annual rate. Colocation facilities held roughly 56 percent market share in 2025, serving companies that want infrastructure without the capital cost of construction.

Capacity data captured the pace of the buildout. US colocation inventory climbed about 22 percent quarter over quarter in early 2026 to reach 29.0 gigawatts, a 48 percent increase year over year. That kind of expansion reflects demand for high-density, AI-ready facilities outpacing available supply in many markets.

The largest operators anchor the sector, with established colocation providers and cloud companies accelerating capacity additions to meet AI-driven demand. New entrants and developers have joined the race, contributing to a pipeline of projects that stretches years into the future.

The figures describe a market growing on multiple fronts at once, with rising revenue, expanding capacity, and a shift toward facilities purpose-built for the power density that AI computing requires.

Source: Mordor Intelligence -- https://www.mordorintelligence.com/industry-reports/united-states-data-center-market