North America Data Center Growth & Investment Trends

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DCPulse has released its latest report, “North America Data Center Colocation Market Size, Share and Trends, 2025–2028,” offering an in-depth analysis of the region’s dynamic colocation industry, key growth drivers, challenges, and future outlook. As a global digital infrastructure leader, North America continues to attract enterprises, cloud providers, and hyperscalers seeking secure, redundant, and high-performance colocation services across diverse metropolitan hubs.

Market Size & Projected Growth

According to DCPulse, the North America data center colocation market was valued at USD 22,995.3 million in 2024 and is projected to expand from USD 25,257.1 million in 2025 to USD 31,400.5 million by 2028, registering a CAGR of 7.5% during the forecast period (2025–2028).

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Descriptive Analysis of Growth Drivers

DCPulse analysts highlight the following factors driving market expansion:

• Strategic Geographic Position: North America’s vast and interconnected geography supports the deployment of data center facilities across major metropolitan areas, ensuring world-class redundancy, security, and reliability.
• Major Data Center Hubs: Key U.S. cities such as New York, Dallas, and Los Angeles, alongside Canadian hubs like Montreal, Toronto, and Vancouver, provide dense carrier ecosystems and broad access to cloud providers and network services.
• Digitization & Technological Advancements: Ongoing digital transformation across industries, paired with surging data processing needs and emerging technologies, continues to fuel demand for scalable colocation solutions.

Key Competitors in the North America Colocation Market

• Equinix
• Digital Realty
• CyrusOne
• CoreSite
• Other leading regional and international colocation operators

Market Segmentation

By Location

• United States (key hubs: New York, Dallas, Los Angeles, Chicago, and others)
• Canada (key hubs: Montreal, Toronto, Vancouver, and others)

By End-User

• Enterprises
• Cloud service providers
• Hyperscalers
• Content & media companies
• Financial services

By Service Type

• Retail colocation
• Wholesale colocation

Emerging Trends & Innovations

• AI & High-Density Workloads: Growing demand for AI and edge computing accelerates the need for high-capacity, low-latency environments.
• Green Initiatives: Operators are increasingly focusing on renewable energy sourcing and sustainable data center designs.
• Strategic Investments: Expansion of large-scale facilities by global leaders to meet rising enterprise and hyperscale requirements.
• Hybrid & Multi-Cloud Integration: Seamless interconnectivity between colocation centers and multiple cloud platforms is becoming a core service differentiator.

Regional Insights

• United States: The largest market, driven by dense metropolitan hubs and strong enterprise/cloud demand.
• Canada: Rapidly emerging as a key destination for colocation, benefiting from favorable energy costs and robust connectivity.
• Rest of North America: Gradual expansion into secondary markets to support distributed workloads and edge applications.

Industry Challenges/Restraints

• Rising energy consumption and the need for renewable sourcing.
• Zoning, permitting, and regulatory complexities in urban centers.
• Infrastructure upgrades required to support high-density, hyperscale deployments.

Future Outlook & Strategic Directions

DCPulse forecasts robust growth for the North America data center colocation market, driven by strong enterprise demand, cloud adoption, and investment in digital transformation. Operators that embrace sustainability, cater to AI-driven workloads, and strategically expand into both primary and secondary markets will secure a competitive edge in the region’s evolving landscape.


About DCPulse

DCPulse delivers actionable market intelligence on the global data center ecosystem, helping businesses, investors, and decision-makers navigate opportunities in colocation, cloud, and digital infrastructure.

Website: https://dcpulse.com/
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