U.S. Data Center Market to Hit USD 3,81,750.98 Mn by 2035, Growing at 10.65% CAGR DC Market Insights

Published: Thursday, November 6, 2025 at 3:31 am

U.S. Data Center Market Poised for Significant Growth, Driven by AI and Cloud Expansion

The U.S. data center market is projected to reach USD 381.75 billion by 2035, growing at a compound annual growth rate (CAGR) of 10.65% from 2020. This substantial expansion is fueled by the increasing demand for data processing driven by artificial intelligence (AI), cloud computing, and digital modernization initiatives.

Key factors driving this growth include the rise of AI and machine learning workloads, the expansion of hyperscale cloud platforms, and the modernization of enterprise and government data infrastructure. These trends are intensifying the need for increased compute density, robust interconnection capabilities, and substantial power resources.

However, the industry faces significant challenges. Power availability and transmission constraints are becoming major bottlenecks, particularly in key metropolitan areas. Permitting processes, siting issues, and community concerns are also impacting project timelines and costs. Supply chain disruptions and the rapid pace of technological advancements, such as liquid cooling and new GPU generations, further complicate the landscape.

To overcome these hurdles, data center operators are adopting innovative strategies. These include liquid cooling technologies to enhance efficiency, the development of large-scale, multi-gigawatt campuses, and the exploration of grid-adjacent and on-site power solutions. A shift towards secondary markets offering faster approvals, incentives, and abundant resources is also underway.

BNN's Perspective: The data center market's growth trajectory underscores the critical role of digital infrastructure in the modern economy. While challenges exist, the industry's adaptability and innovation, particularly in areas like sustainable power and cooling, suggest a promising future. Careful planning and collaboration between industry stakeholders and policymakers will be crucial to ensure sustainable and efficient growth.

Keywords: Data Center Market, AI, Cloud Computing, Hyperscale, Liquid Cooling, Power Availability, Transmission Constraints, Secondary Markets, Sustainability, Interconnection.

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