Market Size of Boston Data Center Industry
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2018 - 2022 |
| CAGR | 3.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Boston Data Center Market Analysis
The Boston Data Center market is valued at 91MW in the current year and is expected to register a CAGR of 3.5% during the forecast period to 119.30MW by the next five years. A data center is a specific area inside a structure or a collection of designs, including computer systems and related equipment, such as networking and storage systems.
- Boston is one of the most significant cities in New England and the eleventh most populous metropolitan region in North America, with the ninth largest GDP. The city has had consistent demand for colocation and wholesale data center facilities. Financial services, technological research and development, biotechnology, healthcare, education, commercial fishing, food processing, tourism, printing, and publishing are among the major businesses in Boston.
- Boston is also the state capital and the regional headquarters for several federal agencies, which generates government demand for data center providers. The metro Boston area comprises over 100 colleges and universities, which provide a well-educated workforce and significantly impact the Boston economy.
- Boston remains a fantastic area to expand, owing to an emphasis on green projects. Massachusetts has some of the country's highest energy rebates and incentives, making it an excellent site for any company's data center goals.
- While the region's concentration of data-driven global corporations and high-tech startups produces many new business opportunities across industries, the region faces severe data gravity concerns. This data explosion has significant consequences. This is because when more data is created and processed across organizational locations, the enterprise's management becomes increasingly complicated.
- Furthermore, with the outbreak of COVID-19, the country was significantly affected, which disrupted data center service providers in the region. Moreover, with the nationwide travel ban enforced in the country, many organizations adapted to work from home, which increased the data traffic significantly and put tremendous pressure on the data center, coping with the existing capacities to prevent downtime.
Boston Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Boston Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), by Tier Type (Tier 1&2, Tier 3, Tier 4), by Absorption (Utilized (Colocation Type (Retail, Wholescale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), Non-Utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
Boston Data Center Market Size Summary
The Boston data center market is experiencing steady growth, driven by the city's robust economic landscape and technological advancements. As a major metropolitan area in North America, Boston's demand for colocation and wholesale data center facilities is fueled by its diverse industries, including financial services, biotechnology, and education. The presence of over a hundred colleges and universities in the region contributes to a well-educated workforce, further supporting the market's expansion. Additionally, Boston's commitment to green initiatives and the availability of significant energy rebates make it an attractive location for data center operations. The region's concentration of global corporations and high-tech startups presents numerous business opportunities, although it also faces challenges related to data gravity and management complexities due to the increasing volume of data generated.
The market's growth is further bolstered by the digital transformation within the BFSI sector, where the adoption of digital banking and cloud technologies has significantly increased data generation. This trend is mirrored by the telecom and IT industries, which are rapidly migrating to cloud solutions and launching industry-specific offerings. The COVID-19 pandemic accelerated investments in modernizing IT and telecommunications infrastructure, leading to a surge in demand for hyper-scale data centers. The rise of smart technologies and digital payment methods also contributes to the growing need for data center facilities. Key players in the market are employing strategic partnerships and acquisitions to enhance their market presence, with significant investments in data center construction and infrastructure development.
Boston Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION
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1.1 By DC Size
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1.1.1 Small
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1.1.2 Medium
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1.1.3 Large
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1.1.4 Massive
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1.1.5 Mega
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1.2 By Tier Type
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1.2.1 Tier 1 & 2
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1.2.2 Tier 3
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1.2.3 Tier 4
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1.3 By Absorption
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1.3.1 Utilized
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1.3.1.1 By Colocation Type
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1.3.1.1.1 Retail
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1.3.1.1.2 Wholesale
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1.3.1.1.3 Hyperscale
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1.3.1.2 By End-User
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1.3.1.2.1 Cloud & IT
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1.3.1.2.2 Telecom
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1.3.1.2.3 Media & Entertainment
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1.3.1.2.4 Government
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1.3.1.2.5 BFSI
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1.3.1.2.6 Manufacturing
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1.3.1.2.7 E-Commerce
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1.3.1.2.8 Other End-User
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1.3.2 Non-Utilized
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Boston Data Center Market Size FAQs
What is the current Boston Data Center Market size?
The Boston Data Center Market is projected to register a CAGR of 3.5% during the forecast period (2024-2030)
Who are the key players in Boston Data Center Market?
Digital Realty Trust, Inc., DataBank, Equinix Inc., Cyxtera Technologies, Inc. and Cogent are the major companies operating in the Boston Data Center Market.
