United States Data Center Market Size
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 14.81 Thousand MW |
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Market Volume (2029) | 24.11 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.24 % |
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Fastest Growing by Tier Type | Tier 4 |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
United States Data Center Market Analysis
The United States Data Center Market size is estimated at 14.81 thousand MW in 2024, and is expected to reach 24.11 thousand MW by 2029, growing at a CAGR of 10.24%. Further, the market is expected to generate colocation revenue of USD 37,501 Million in 2024 and is projected to reach USD 95,232 Million by 2029, growing at a CAGR of 20.49% during the forecast period (2024-2029).
USD 37,501.03 Million
Market Size in 2024
USD 95,232 Million
Market Size in 2029
13.2%
CAGR (2017-2023)
20.5%
CAGR (2024-2029)
IT Load Capacity
14,810.44 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 24,108 MW by 2029. 5G would heavily contribute to data generation through increased data points, generating demand for more data centers.
Total Raised Floor Space
Sq. Ft. 44.24 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 80.7 million sq. ft by 2029. The major providers constructing the DC facilities are DataBank, Equinix Inc., and H5 Data Centers. It would increase raise floor space.
Installed Racks
2,212,050
Volume, Installed Racks, 2024
The total number of installed racks is expected to reach over 4 million units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029. The demand is being driven by larger deployments for hyperscale occupiers.
# of DC Operators & DC Facilities
79 and 833
Volume, DC Facilities, 2024
Evolving technology businesses have led data center growth. Growth in 5G and extensive fiber connectivity supporting technologies like FWA, smartphone data consumption increased by more than 10 GB from 2018 to 2023.
Leading Market Player
12.3%
Market Share, Switch, 2023
In 2023, Switch held a market share of 12.3% with an operational capacity of 1590 MW. Switch’s focus on sustainability and efficient technologies make their exascale ecosystems most sustainable and cost-effective colocation environment.
Tier 3 data center accounted for majority share in terms of volume in 2023
- Tier 3 data centers are the most preferred in the country. They operated at an IT load capacity of 5,319.6 MW in 2022. Tier 3 data centers have redundant and dual-powered servers, storage, network links, and other IT components. As of 2022, the country had 399 tier 3 data centers. Around 73 data centers are under construction with Tier 3 standards.
- SMEs generally prefer a Tier 3-rated facility. SMEs are a vital component of the US economy, as they comprise 99.9% of active enterprises. End users such as BFSI and telecom are focusing on hyperscale colocation services.
- Tier 4 data centers are the next most preferred, mainly by large enterprises, as they provide 99.995% uptime. However, high cost is the major factor for the low adoption of these facilities. With the data traffic generation, upcoming data centers are expected to follow Tier 4 standards. In the United States, IP traffic reached an annual run rate of 955.7 exabytes in 2021, up from an annual run rate of 376.2 exabytes in 2016, suggesting the growing demand for more redundant and efficient facilities. As a result, tier 4 data centers are expected to hold the highest market share of 48.9% in 2029, followed by tier 3 facilities with a share of 45.4%.
- Tier 1 & 2 data centers are the least preferred as tier 1 has an expected uptime of 99.671% (28.8 hours of downtime annually), while tier 2 has an expected uptime of 99.741% (22 hours of downtime annually). These data centers are commonly utilized by small businesses looking for a cost-effective option for their data storage needs. However, due to lower functionality, even SMEs are focusing on adopting wholesale colocation services with a Tier 3 certification. Therefore, tier 1 & 2 DCs are expected to showcase the lowest growth.
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United States Data Center Market Trends
Increase use of video calling, augmented in-store shopping experiences, remote health services, and improved mobile gaming to drive market growth
- With the introduction of faster network alternatives, such as 5G and extensive fiber connectivity supporting technologies like FWA, data consumption through smartphones increased from 1.8 GB in 2018 to about 8.5 GB in 2022 at a CAGR of 24.7%. This consumption is expected to further increase to more than 64 GB by 2029, at a CAGR of 33.6%. As 5G drives smartphone adoption and upgrades, the market will witness more data generating points, leading to increased data consumption that leverages higher wireless network speeds.
- Faster internet and the subsequent penetration of devices capable of accessing it play a crucial role in determining and estimating data consumption in a region. Data suggests that the number of 5G mobile connections in the United States will increase from 15% in 2021 to about 68% by 2025, signifying high 5G mobile penetration in the country. Users find enhanced video calling, augmented in-store shopping experiences, remote health services, and improved mobile gaming as some of the activities through 5G networks to be very or extremely appealing, which contributes to data usage.
- Several apps account for considerable smartphone reach across audiences, with YouTube accounting for about 74% audience reach, followed by 61% for Gmail, 59% for Facebook, and 58% for the Google Search app. The extensive reach of such smartphone apps, despite the Android and iOS division among the audience, signifies deep app penetration and usage in the United States. This highlights the need for data storage to provide the required memory platforms for such media to perform and store user data, thereby creating a greater demand for data processing facilities.
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Smartphone adoption and increasing 5G connections to drive market growth
- The United States is a significant market in both North America and the global smartphone portfolio. With smartphone adoption expected to grow from 83% in 2021 to 85% by 2025, it will substantially contribute to the growth of subscriber penetration rates, increasing from 85% in 2021 to 86% by 2025. This growth will result in a rise in smartphone sales and the overall number of smartphones in the country. Although longer replacement rates and a lack of compelling features in the US smartphone industry led to a decrease in sales in 2018, the market received a major boost with the 5G rollout and adoption by operators in the highly competitive smartphone market.
- Additionally, data released in January 2022 indicated a USD 1.7 billion increase in smartphone sales value, totaling approximately USD 74.7 billion in 2022, compared to about USD 73 billion in 2021. Despite the market slowdown during COVID-19, 5G has been a key driver of smartphone adoption and penetration in the United States. The pandemic increased the anticipated number of 5G connections in 2025 from 205 million to about 218 million, signifying how 5G would drive better smartphone sales in the region.
- The increase in the number of smartphones was observed through the growth of mobile wireless subscriber connections in the country, rising from about 442.5 million in 2019 to approximately 498.91 million by 2021. This trend indicates the high penetration rates contributing to sales. Over the forecast period, 5G will heavily contribute to data generation through increased data points, generating demand for more data centers to store and process the data.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase network infrastructure and 5G accessibility to drive market growth
- Government investments to shape fiber connectivity to drive market growth
- Growth in Fiber-to-the-home/building (FTTH/B) service in the country drives the demand for data centers
United States Data Center Industry Overview
The United States Data Center Market is fragmented, with the top five companies occupying 19.92%. The major players in this market are CoreSite (America Tower Corporation), Databank Holdings Ltd, Digital Realty Trust, Inc., Equinix, Inc. and NTT Ltd. (sorted alphabetically).
United States Data Center Market Leaders
CoreSite (America Tower Corporation)
Databank Holdings Ltd
Digital Realty Trust, Inc.
Equinix, Inc.
NTT Ltd.
Other important companies include CyrusOne Inc., Cyxtera Technologies, Flexential Corp., H5 Data Centers LLC, Quality Technology Services, Switch, Vantage Data Centers, LLC.
*Disclaimer: Major Players sorted in alphabetical order.
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United States Data Center Market News
- February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.
- December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.
- October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
United States Data Center Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. MARKET OUTLOOK
2.1. It Load Capacity
2.2. Raised Floor Space
2.3. Colocation Revenue
2.4. Installed Racks
2.5. Rack Space Utilization
2.6. Submarine Cable
3. Key Industry Trends
3.1. Smartphone Users
3.2. Data Traffic Per Smartphone
3.3. Mobile Data Speed
3.4. Broadband Data Speed
3.5. Fiber Connectivity Network
3.6. Regulatory Framework
3.6.1. United States
3.7. Value Chain & Distribution Channel Analysis
4. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
4.1. Hotspot
4.1.1. Atlanta
4.1.2. Austin
4.1.3. Boston
4.1.4. Chicago
4.1.5. Dallas
4.1.6. Houston
4.1.7. Los Angeles
4.1.8. New Jersey
4.1.9. New York
4.1.10. Northern California
4.1.11. Northern Virginia
4.1.12. Northwest
4.1.13. Phoenix
4.1.14. Salt Lake City
4.1.15. Rest of United States
4.2. Data Center Size
4.2.1. Large
4.2.2. Massive
4.2.3. Medium
4.2.4. Mega
4.2.5. Small
4.3. Tier Type
4.3.1. Tier 1 and 2
4.3.2. Tier 3
4.3.3. Tier 4
4.4. Absorption
4.4.1. Non-Utilized
4.4.2. Utilized
4.4.2.1. By Colocation Type
4.4.2.1.1. Hyperscale
4.4.2.1.2. Retail
4.4.2.1.3. Wholesale
4.4.2.2. By End User
4.4.2.2.1. BFSI
4.4.2.2.2. Cloud
4.4.2.2.3. E-Commerce
4.4.2.2.4. Government
4.4.2.2.5. Manufacturing
4.4.2.2.6. Media & Entertainment
4.4.2.2.7. Telecom
4.4.2.2.8. Other End User
5. COMPETITIVE LANDSCAPE
5.1. Market Share Analysis
5.2. Company Landscape
5.3. Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
5.3.1. CoreSite (America Tower Corporation)
5.3.2. CyrusOne Inc.
5.3.3. Cyxtera Technologies
5.3.4. Databank Holdings Ltd
5.3.5. Digital Realty Trust, Inc.
5.3.6. Equinix, Inc.
5.3.7. Flexential Corp.
5.3.8. H5 Data Centers LLC
5.3.9. NTT Ltd.
5.3.10. Quality Technology Services
5.3.11. Switch
5.3.12. Vantage Data Centers, LLC
5.4. LIST OF COMPANIES STUDIED
6. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
7. APPENDIX
7.1. Global Overview
7.1.1. Overview
7.1.2. Porter’s Five Forces Framework
7.1.3. Global Value Chain Analysis
7.1.4. Global Market Size and DROs
7.2. Sources & References
7.3. List of Tables & Figures
7.4. Primary Insights
7.5. Data Pack
7.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, UNITED STATES, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), UNITED STATES, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, UNITED STATES, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, UNITED STATES, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, UNITED STATES, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, UNITED STATES, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, UNITED STATES, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, UNITED STATES, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, UNITED STATES, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, UNITED STATES, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, UNITED STATES, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, UNITED STATES, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF ATLANTA, MW, UNITED STATES, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF ATLANTA, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF AUSTIN, MW, UNITED STATES, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF AUSTIN, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF BOSTON, MW, UNITED STATES, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF BOSTON, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF CHICAGO, MW, UNITED STATES, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF CHICAGO, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF DALLAS, MW, UNITED STATES, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF DALLAS, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF HOUSTON, MW, UNITED STATES, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF HOUSTON, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF LOS ANGELES, MW, UNITED STATES, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF LOS ANGELES, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF NEW JERSEY, MW, UNITED STATES, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF NEW JERSEY, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF NEW YORK, MW, UNITED STATES, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF NEW YORK, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 32:
- VOLUME SIZE OF NORTHERN CALIFORNIA, MW, UNITED STATES, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF NORTHERN CALIFORNIA, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NORTHERN VIRGINIA, MW, UNITED STATES, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NORTHERN VIRGINIA, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 36:
- VOLUME SIZE OF NORTHWEST, MW, UNITED STATES, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF NORTHWEST, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF PHOENIX, MW, UNITED STATES, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF PHOENIX, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF SALT LAKE CITY, MW, UNITED STATES, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF SALT LAKE CITY, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF REST OF UNITED STATES, MW, UNITED STATES, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF REST OF UNITED STATES, MW, HOTSPOT, %, UNITED STATES, 2017 - 2029
- Figure 44:
- VOLUME OF DATA CENTER SIZE, MW, UNITED STATES, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF DATA CENTER SIZE, %, UNITED STATES, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF LARGE, MW, UNITED STATES, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF MASSIVE, MW, UNITED STATES, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF MEDIUM, MW, UNITED STATES, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF MEGA, MW, UNITED STATES, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF SMALL, MW, UNITED STATES, 2017 - 2029
- Figure 51:
- VOLUME OF TIER TYPE, MW, UNITED STATES, 2017 - 2029
- Figure 52:
- VOLUME SHARE OF TIER TYPE, %, UNITED STATES, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF TIER 1 AND 2, MW, UNITED STATES, 2017 - 2029
- Figure 54:
- VOLUME SIZE OF TIER 3, MW, UNITED STATES, 2017 - 2029
- Figure 55:
- VOLUME SIZE OF TIER 4, MW, UNITED STATES, 2017 - 2029
- Figure 56:
- VOLUME OF ABSORPTION, MW, UNITED STATES, 2017 - 2029
- Figure 57:
- VOLUME SHARE OF ABSORPTION, %, UNITED STATES, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF NON-UTILIZED, MW, UNITED STATES, 2017 - 2029
- Figure 59:
- VOLUME OF COLOCATION TYPE, MW, UNITED STATES, 2017 - 2029
- Figure 60:
- VOLUME SHARE OF COLOCATION TYPE, %, UNITED STATES, 2017 - 2029
- Figure 61:
- VOLUME SIZE OF HYPERSCALE, MW, UNITED STATES, 2017 - 2029
- Figure 62:
- VOLUME SIZE OF RETAIL, MW, UNITED STATES, 2017 - 2029
- Figure 63:
- VOLUME SIZE OF WHOLESALE, MW, UNITED STATES, 2017 - 2029
- Figure 64:
- VOLUME OF END USER, MW, UNITED STATES, 2017 - 2029
- Figure 65:
- VOLUME SHARE OF END USER, %, UNITED STATES, 2017 - 2029
- Figure 66:
- VOLUME SIZE OF BFSI, MW, UNITED STATES, 2017 - 2029
- Figure 67:
- VOLUME SIZE OF CLOUD, MW, UNITED STATES, 2017 - 2029
- Figure 68:
- VOLUME SIZE OF E-COMMERCE, MW, UNITED STATES, 2017 - 2029
- Figure 69:
- VOLUME SIZE OF GOVERNMENT, MW, UNITED STATES, 2017 - 2029
- Figure 70:
- VOLUME SIZE OF MANUFACTURING, MW, UNITED STATES, 2017 - 2029
- Figure 71:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, UNITED STATES, 2017 - 2029
- Figure 72:
- VOLUME SIZE OF TELECOM, MW, UNITED STATES, 2017 - 2029
- Figure 73:
- VOLUME SIZE OF OTHER END USER, MW, UNITED STATES, 2017 - 2029
- Figure 74:
- VOLUME SHARE OF MAJOR PLAYERS, %, UNITED STATES, 2022
United States Data Center Industry Segmentation
Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- Tier 3 data centers are the most preferred in the country. They operated at an IT load capacity of 5,319.6 MW in 2022. Tier 3 data centers have redundant and dual-powered servers, storage, network links, and other IT components. As of 2022, the country had 399 tier 3 data centers. Around 73 data centers are under construction with Tier 3 standards.
- SMEs generally prefer a Tier 3-rated facility. SMEs are a vital component of the US economy, as they comprise 99.9% of active enterprises. End users such as BFSI and telecom are focusing on hyperscale colocation services.
- Tier 4 data centers are the next most preferred, mainly by large enterprises, as they provide 99.995% uptime. However, high cost is the major factor for the low adoption of these facilities. With the data traffic generation, upcoming data centers are expected to follow Tier 4 standards. In the United States, IP traffic reached an annual run rate of 955.7 exabytes in 2021, up from an annual run rate of 376.2 exabytes in 2016, suggesting the growing demand for more redundant and efficient facilities. As a result, tier 4 data centers are expected to hold the highest market share of 48.9% in 2029, followed by tier 3 facilities with a share of 45.4%.
- Tier 1 & 2 data centers are the least preferred as tier 1 has an expected uptime of 99.671% (28.8 hours of downtime annually), while tier 2 has an expected uptime of 99.741% (22 hours of downtime annually). These data centers are commonly utilized by small businesses looking for a cost-effective option for their data storage needs. However, due to lower functionality, even SMEs are focusing on adopting wholesale colocation services with a Tier 3 certification. Therefore, tier 1 & 2 DCs are expected to showcase the lowest growth.
| Hotspot | |
| Atlanta | |
| Austin | |
| Boston | |
| Chicago | |
| Dallas | |
| Houston | |
| Los Angeles | |
| New Jersey | |
| New York | |
| Northern California | |
| Northern Virginia | |
| Northwest | |
| Phoenix | |
| Salt Lake City | |
| Rest of United States |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
|
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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