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North America Data Center Server Market Size (2024 - 2029)

The North America data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments by domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of racks. Additionally, the region is enhancing its connectivity through the development of submarine cable systems, further supporting the market's growth trajectory.

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Market Size of North America Data Center Server Industry

North America Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 56.32 Billion
Market Size (2030) USD 119.78 Billion
CAGR (2024 - 2030) 13.40 %
Market Concentration Medium

Major Players

North America Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Data Center Server Market Analysis

The North America Data Center Server Market size is estimated at USD 56.32 billion in 2024, and is expected to reach USD 119.78 billion by 2030, growing at a CAGR of 13.40% during the forecast period (2024-2030).

The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the North American data center server market is expected to reach 25,757 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 88.9 million sq. ft by 2029.
  • Planned Racks: The Region's total number of racks to be installed is expected to reach 4.4 million units by 2029. The United States is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 100 submarine cable systems connecting North America, and many are under construction. One such submarine cable that is estimated to start service in 2023 is GigNet-1), which stretches over 1,104 Kilometers with landing points from Boca Raton, United States.

North America Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The North America data center server market is segmented by form factor (blade server, rack server, and tower server), by end-user (it and telecommunication, BFSI, government, media and entertainment, and other end users), and by geography (United States, Canada, Mexico, and rest of North America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
Geography
United States
Canada
Mexico
Rest of North America
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North America Data Center Server Market Size Summary

The North America data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for enhanced data security regulations. The market is characterized by substantial investments from domestic players and a shift towards cloud-based services, which offer flexible pricing models and scalability. The adoption of cloud technology is further accelerated by the expansion of 5G networks and the rising popularity of IoT, which necessitate robust data center infrastructure to handle the growing volume of data. The market is also witnessing a surge in construction activities, with numerous data center projects underway, particularly in regions like Northern Virginia, Greater Phoenix, and Dallas Metro, which are becoming hubs for data center expansion.

The competitive landscape of the North American data center server market is moderately consolidated, with major players such as Dell Inc., Hewlett Packard Enterprise, Lenovo Group Limited, Fujitsu, and Cisco Systems Inc. leading the charge. These companies are focusing on enhancing their product offerings and expanding their regional presence to capture a larger market share. Innovations in server technology, such as energy-efficient processors and advanced infrastructure management platforms, are driving the market forward. Additionally, economic incentives and tax benefits are playing a crucial role in promoting data center construction, further fueling market growth. As businesses increasingly migrate to cloud services to optimize their IT operations, the demand for data center servers is expected to rise, supporting the market's robust expansion trajectory.

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North America Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Adoption of Cloud and IoT Services

      2. 1.2.2 Large-scale commercialization of 5G networks

    3. 1.3 Market Restraints

      1. 1.3.1 Rising CapEx for data center construction

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

    3. 2.3 Geography

      1. 2.3.1 United States

      2. 2.3.2 Canada

      3. 2.3.3 Mexico

      4. 2.3.4 Rest of North America

North America Data Center Server Market Size FAQs

The North America Data Center Server Market size is expected to reach USD 56.32 billion in 2024 and grow at a CAGR of 13.40% to reach USD 119.78 billion by 2030.

In 2024, the North America Data Center Server Market size is expected to reach USD 56.32 billion.

North America Data Center Server Market Report Snapshots

North America Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)