United States Data Center Market Outlook 2021-2026: Data Center Investments Continue to Rise & Increase In Hyperscale Data Center Investments

Dublin, April 22, 2021 (GLOBE NEWSWIRE) -- The "U.S. Data Center Market - Industry Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The U.S. data center market by investment is expected to grow at a CAGR of approx. 3% during the period 2020-2026.

The market is witnessing growth on account of the growing popularity of IoT, the emergence of 5G networks, the COVID-19 pandemic, and the increasing demand for fast streaming of online entertainment content.

During Q2 2020, some data center investments halted due to stringent rules imposed by the lockdown. The effect was identified to have lasted for at least a month across major data center development destinations in the US.

INSIGHTS BY VENDORS

The U.S. data center market comprises several IT, electrical, and mechanical infrastructure providers. Product innovations are likely to play a vital role in gaining market share. The US data center market is witnessing intense competition, with solution providers offering innovative products to provide maximum efficiency, scalability, and reliability.

Cisco Systems, Dell Technologies, Hewlett Packard Enterprise (HPE), ABB, Caterpillar, Cummins, Schneider Electric, and Vertiv are among the prominent IT and support infrastructure providers in the market. The 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 the market.

U.S. Data Center Market Segmentation

The U.S. Data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The IT infrastructure market is growing due to increased investments in hyperscale infrastructure.

Servers expect to generate the maximum revenue, followed by storage and network infrastructure segments. The high penetration of artificial intelligence-based infrastructure solutions due to exponential growth in data generation is likely to increase IT infrastructure demand. The increased adoption of all-flash storage arrays alone with hybrid storage arrays is driving the storage systems market.

High-performance operations aid the growth of flash storage systems in data centers that require strong I/O capabilities. The increased deployment of big data and AI applications support the development of all-flash storage systems. The increase in bandwidth requirements, consolidation of data centers, and virtualization are significant factors driving the demand for ethernet port switches, controllers, and adaptors.

The US market is likely to witness innovations in power infrastructure solutions to increase efficiency and reduce operational challenges. Datacenter operators such as Microsoft and vendors namely Rolls Royce Power Systems are exploring fuel-cell alternatives to data center generators due to increased concerns over carbon emissions.

The diesel generator market expects to grow in the coming years, where fuel-cell could replace these systems by the end of the forecast period. In the US, the adoption of lithium-ion, nickel-zinc, and Prussian blue sodium-ion UPS batteries will contribute to the data center UPS market growth. The demand for switchgear and monitored and switched is also expected to continue to grow in the region.

Data centers in South Eastern US adopt free-cooling techniques, including chillers and evaporate cooling solutions. Virginia supports up to 5,500 hours of passive-free cooling methods annually, thereby reducing the application of chillers. On the other hand, Alabama and Florida support around 3,500 hours and 3,000 hours of free cooling, respectively. South Eastern US is expected to observe investment in chillers supporting free cooling.

Increased investments in mega facilities and hyperscale projects have boosted construction contractors' demand in South Eastern US. Infrastructure vendors are partnering with major contractors to increase revenue share. The availability of tax incentives and free cooling solutions is increasing the attractiveness for the development of data centers in the South Eastern US. Nevada, Oregon, California, and Utah have witnessed the development of new projects.

The U.S. data center market has observed a continuous decline in the number of Tier I and Tier II facilities over the last five years because of the increasing awareness of redundant infrastructure. The redundancy of Tier II data centers in power & the cooling systems infrastructure is mostly N+1. Most underdevelopment projects across the US fall under the Tier III category. There are more than 90 projects that were operational or under construction in 2020.

Key Data Center Critical (IT) Infrastructure Providers

• Cisco Systems

• Dell Technologies

• Hewlett Packard Enterprise (HPE)

• IBM

• Lenovo

• NetApp

Key Data Center Support Infrastructure Providers

• ABB

• Caterpillar

• Cummins

• Eaton

• Schneider Electric

• STULZ

• Vertiv Group

Key Data Center Contractors

• AECOM

• CORGAN

• DPR CONSTRUCTION

• Holder Construction Group

• Jacobs Engineering Group

• Syska Hennessy Group

• Turner Construction

Key Data Center Investors

• Apple

• Amazon Web Services (AWS)

• CyrusOne

• Compass Datacenters (Root Data Center)

• Digital Realty

• Equinix

• Facebook

• Google

• Microsoft

• NTT Global Data Centers (RagingWire Data Centers)

• Switch

• Vantage Data Centers

Other Prominent Critical (IT) Infrastructure Providers

• AccelStor Technologies

• DataDirect Networks (DDN)

• FUJITSU

• Hitachi Vantara

• Huawei Technologies

• Infortrend Technology

• Inspur

• Intel

• Micron Technology

• MiTAC Holdings

• Nimbus Data

• Pivot3

• QNAP Systems

• Quanta Cloud Technology (Quanta Computer)

• SAMSUNG

• Seagate Technology

• Silk Cloud Data Platform (Kaminario)

• Super Micro Computer

• Synology

• Toshiba

• VIOLIN (StorCentric)

• Western Digital

• Wiwynn (Wistron)

Other Prominent Support Infrastructure Providers

• Airedale International Air Conditioning

• Asetek

• Bloom Energy

• Condair Group

• Cormant

• Cyber Power Systems

• Data Aire

• Delta Electronics (Delta Power Solutions)

• FNT Software

• Generac Power Systems

• Green Revolution Cooling (GRC)

• Hitec Power Protection

• KOHLER

• Legrand

• Mitsubishi Electric Corporation

• Natron Energy

• Nlyte Software

• Rittal

• Rolls-Royce Power Systems AG

• Trane (Ingersoll Rand)

• Tripp Lite

• Yanmar Group (HIMOINSA)

• ZincFive

Other Prominent Construction Contractors

• Arup Group

• Balfour Beatty US

• BlueScope Construction

• Clune Construction

• Fluor Corporation

• Fortis Construction

• Gensler

• Gilbane Building Company

• HDR Architecture

• HITT Contracting

• Hoffman Construction

• JE Dunn Construction Group

• Linesight

• Morrison Hershfield

• Mortenson Construction

• Rogers-O'Brien Construction

• Structure Tone Organization

• The Walsh Group

Other Prominent Data Center Investors

• Aligned Energy

• COPT Data Center Solutions (COPT DCS)

• CoreSite Realty

• Cyxtera Technologies

• DataBank

• Data Foundry

• DC BLOX

• EdgeCore Internet Real Estate

• EdgeConneX

• Flexential

• FIFTEENFORTYSEVEN CRITICAL SYSTEMS REALTY

• GIGA Data Centers

• H5 DATA CENTERS

• Iron Mountain

• Quality Technology Services (QTS Realty Trust)

• Stream Data Centers

• Sabey Data Center

• STACK INFRASTRUCTURE

• T5 Data Centers

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Data Center Site Selection Criteria
7.2 Submarine Cables

8 Market Opportunities & Trends
8.1 5G To Grow Edge Data Center Deployments
8.2 Adoption Of AI Aiding Growth Of Liquid Immersion & D2C Cooling
8.3 Increasing Procurement of Renewable Energy
8.4 Software-Defined Power & Data Center Infrastructure Automation
8.5 Emergence of QLC NAND Flash Drives
8.6 Innovative UPS Battery Technologies
8.7 Adoption Of 200/400 GBE Switch Ports
8.8 Adoption Of Hyperconverged & Converged Infrastructure Platforms

9 Market Growth Enablers
9.1 COVID-19 a Catalyst to Data Center Growth
9.2 Growing Rack Power Density
9.3 Data Center Investments Continue To Rise
9.4 Increase In Hyperscale Data Center Investments
9.5 State Tax Incentives
9.6 Rising Facility Development Targeting PUE of < 1.5
9.7 M&A on Data Center Expansion
9.8 Cloud, Big Data, & IoT Affecting Data Center Market

10 Market Restraints
10.1 Increasing Water Consumption by Data Centers
10.2 Rising Carbon Emissions from Data Centers
10.3 Increase in Power & Network Outages
10.4 Security Challenges In Data Centers
10.5 Lack Of Skilled Workforce

For more information about this report visit https://www.researchandmarkets.com/r/xzmfrj

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