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The US data center market by investment is expected to grow at a CAGR of 3% during the forecast period of 2020-2026, according to the data of ResearchAndMarkets.com.

Thanks to the growing popularity of the Internet of Things (IoT), the emergence of fifth-generation (5G) networks, the COVID-19 pandemic, and the increasing demand for fast streaming of online entertainment content, the US data center market is growing quickly.

Moreover, this market is witnessing high investments in hyperscale data center development, growing competition among construction contractors to attain million-dollar contracts, as well as strong revenue opportunities for sub-contractors operating across states.

In terms of segments, servers are anticipated to generate the maximum revenue, followed by storage and network infrastructure. The high penetration of artificial intelligence (AI)-based infrastructure solutions due to exponential growth in data generation is likely to increase IT infrastructure demand indefinitely. Additionally, the increased adoption of all-flash storage arrays with hybrid storage arrays is driving the storage systems market.

Big data and AI application deployments also support the development of all-flash storage systems. Furthermore, the increase in bandwidth requirements, consolidation of data centers, and virtualization are significant factors driving the demand for ethernet port switches, controllers, and adaptors.

In terms of geography, the South Eastern US data center market witnessed significant investments from enterprise and cloud service providers such as Apple, Facebook, Microsoft, and Google in the past year. For this reason, this region is likely to experience a rise in the number of edge data centers. Also, around 35 projects were opened or under development in the region, with colocation service providers investing over $3.5 billion. 

The state of Virginia is among the largest and the most active data center market worldwide due to its strong connectivity through fiber-optic infrastructure. The construction of new facilities in the region is expected to offer new IT opportunities and support infrastructure vendors. 

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