U.S. Data Center Colocation Market Poised for $85 Billion Expansion by 2031 — Arizton Advisory & Intelligence

Event summary

The U.S. data center colocation market is projected to grow from $43.71 billion in 2025 to $85.18 billion by 2031, a CAGR of 11.76%.
Cumulative investments in the sector are expected to reach $461.62 billion during 2026–2031.
The South-Eastern U.S. is anticipated to attract approximately $127.84 billion in investments, accounting for around 28% of total investments.
EdgeCore Digital Infrastructure is investing $17 billion in a 1.1 GW Virginia campus, highlighting the growing scale of hyperscale and AI infrastructure projects.

The big picture

The U.S. data center colocation market is entering a new investment cycle driven by AI, hyperscale expansion, and sustainability demands. The sector's growth is underpinned by significant capital concentration in key hubs like Northern Virginia and Texas, where power availability and network connectivity are critical. The shift towards high-density infrastructure and carbon-neutral operations reflects broader industry trends aimed at meeting ESG expectations and regulatory requirements.

What we're watching

Regional Concentration: Whether the South-Eastern U.S. can sustain its lead in attracting investments, given its projected $127.84 billion share.
AI Infrastructure Demand: How the expected tripling of AI workload capacity will impact power and cooling infrastructure requirements.
Sustainability Commitments: The pace at which colocation operators like Equinix and CyrusOne can achieve carbon neutrality by 2030.