US Data Center Solutions Market

According to a research report "US Data Center Solutions Market by Hardware (IT, Power, Cooling Modules), Software (Monitoring & Management, Automation & Orchestration, Backup & Disaster Recovery, Virtualization, Security, Analytics) - Global Forecast to 2028" published by MarketsandMarkets, the US data center solutions market is expected to reach USD 165.64 billion in 2028 from USD 111.42 billion in 2024, at a CAGR of 9.7% during the forecast period.

The US data center solutions market is driven by the growing demand for AI-powered automation, hybrid cloud adoption, and the expansion of edge computing to support real-time data processing. The push for energy-efficient and sustainable data centers also accelerates investments in liquid cooling and modular infrastructure. However, challenges such as rising power consumption, supply chain disruptions affecting hardware availability, and increasing cybersecurity threats could hinder market growth.

The hardware segment is expected to hold the largest market share by offering a segment in the US data center solutions market during the forecast period.

The hardware segment is anticipated to hold the largest market share in the US data center solutions market by offering, driven by increasing demand for high-performance servers, storage, and networking equipment. As companies extend their data infrastructure to support cloud computing, artificial intelligence, and edge deployments, investments in sophisticated hardware solutions are gaining pace. Increased construction of hyperscale and colocation data centers keeps demand high for scalable, power-efficient, and effective hardware components such as NVMe storage, GPUs, and high-speed interconnects. Sustainability issues also push innovations toward liquid cooling technologies and modular hardware for data centers to maximize energy efficiency. With companies such as Dell Technologies, HPE, and NVIDIA leading advancements, the hardware segment remains critical for ensuring reliability and performance in modern data centers. Government efforts to boost digitalization and the rollout of 5G also drive the segment's growth, making it the market share leader in the US data center solutions market throughout the forecast period.

The monitoring & management tools segment is expected to hold the largest market share by software in the US data center solutions market during the forecast period.

The monitoring & management tools segment is anticipated to hold the largest market share in the US data center solutions market by software, with the increasing requirement for real-time visibility, automation, and predictive analytics in data center operations. As businesses adopt hybrid and multi-cloud approaches, the demand for AI-driven monitoring solutions increases to maximize the usage of resources, improve security, and avoid downtime. Data center infrastructure management platforms, innovative workload balancing, and power efficiency monitoring software are becoming the norm to ensure operational resilience. Moreover, compliance with regulatory requirements and cybersecurity issues are compelling enterprises to adopt superior management software that can support proactive threat identification and autonomous remediation. Industry players such as VMware, Schneider Electric, and Microsoft continuously innovate in this market, offering AI-driven analytics and cloud-based monitoring solutions. With data centers spreading to cater to 5G, IoT, and edge computing, the demand for intense monitoring & management solutions will likely fuel the market growth over the forecast period.

The healthcare and life sciences segment is expected to grow at the highest CAGR during the forecast period.

The healthcare & life sciences segment is expected to grow at the highest CAGR in the US data center solutions market, driven by the rapid adoption of digital health technologies, AI-driven diagnostics, and electronic health records (EHRs). Rising volumes of data from telemedicine, wearables, and genomics studies are driving the need for high-performance computing, cloud storage, and safe data center solutions. Strict regulatory guidelines like HIPAA compliance necessitate robust cybersecurity and data management features, further necessitating advanced data center infrastructure investment. Further, AI and machine learning applications in drug discovery and personalized medicine push healthcare providers and research institutions to deploy scalable, high-capacity computing solutions. Also propelling demand for hybrid cloud and colocation data centers is the growth of edge computing for real-time patient monitoring and decentralized clinical trials. As healthcare increasingly adopts digital transformation, demand for strong, effective, and secure data infrastructure leads to burgeoning market growth in this category.

Key players in the US data center solutions market are AWS (US), Microsoft (US), Google (US), Equinix (US), Dell (US), Digital Realty (US), HPE (US), CyrusOne (US), Cyxtera Technologies (US), CoreSite (US), QTS Data Centers (US), 365 Data Centers (US), Oracle (US), Iron Mountain (US), IBM (US), LiquidStack (US), and DartPoints (US).

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