U.S. Cloud Data Center Market - Databook 2025 to 2034

The U.S. cloud data center market size was calculated at USD 14.45 billion in 2024 and is predicted to attain around USD 38.34 billion by 2034, expanding at a CAGR of 10.25% from 2025 to 2034.

Highlights of the U.S. Cloud Data Center Market

• By service, the software as a service (SaaS) segment underwent notable growth in the market during 2024.
• By service, the infrastructure as a service (IaaS) segment will gain a significant share of the market over the studied period of 2025 to 2034.
• By deployment, the hybrid cloud segment enjoyed a prominent position in the market during 2024.
• By deployment, the public cloud data center segment is predicted to witness significant growth in the market over the forecast period.
• By organization size, the large enterprises segment captured a significant portion of the market in 2024.
• By organization size, the small/medium enterprises segment is projected to expand rapidly in the market in the coming years.
• By end-user, the BFSI (Banking, financial services, and insurance) segment maintained a leading position in the U.S. cloud data center market in 2024.
• By end-user, the colocation segment is anticipated to grow with the highest CAGR in the market during the studied years.

Industry Valuation and Growth Rate Projection

A cloud data center is a centralized facility equipped with computing resources like networking equipment, storage systems, servers, and cooling infrastructure that is used for the delivery of cloud services over the internet. Cloud data centers require high levels of scalability, reliability, and availability. The U.S. cloud data center market growth is driven by increasing data storage and processing needs, government initiatives for cloud computing, and the growth of e-commerce and online services.

The U.S. cloud data center market applications are they allow organizations to support daily operations, ensure data availability & reliability, facilitate cloud services, and provide a secure environment for critical applications. They host the infrastructure that powers popular applications and platforms, including e-commerce websites, social media networks, and enterprise software solutions.

What are the Trends in the U.S. Cloud Data Center Market?

The market trends in the U.S. cloud data center market highlight increasing data storage & processing needs, rising digitalization in many industries, and government initiatives for cloud computing.

• Increasing data storage & processing needs: A data center is a physical location that stores computing machines and their related hardware equipment. It contains the computing infrastructure that IT systems need, like network equipment, servers, and data storage drives. It is the physical facility that stores a company's digital data. The benefits of cloud storage include disaster recovery, scalable, convenience, synchronization, multiple users, automation, convenient sharing of files, cost efficiency, security, and usability & accessibility.
• Rising digitalization in many industries: Cloud computing is the backbone of cloud data centers that support a range of diverse services like applications, platforms, and infrastructure, thereby acting as an enabler for digital transformation and innovation. Digital transformation benefits for businesses include continued relevancy, increased revenue, faster time to market, greater innovation, increased responsiveness, improved customer engagement, greater agility, more resiliency, better resource management, and increased efficiency & productivity.
• Government initiatives for cloud computing: Government support for cloud computing. The benefit of cloud computing for e-government is that it can increase security. Cloud-based storage can be valuable due to the data stored in cloud computing is guaranteed secure, and many regulations and standards of information safety practices. The government has a major role in the efficacy of a functioning society.

What are the Restraints in the U.S. Cloud Data Center Market?

The restraints in the U.S. cloud data center market include data privacy & security and the complexity of cloud infrastructure.

• Data privacy & security: Data privacy & security challenges include integration with existing systems, insider threats, ineffective privacy safeguards, increasing maintenance costs, increased data volumes, evolving regulatory landscape, improved security awareness, encryption, embedding data privacy, data management complexity, data loss prevention, data breaches, complex implementation, and privacy concerns.
• Complexity of cloud infrastructure: Challenges in cloud infrastructure include scalability, service availability & reliability, governance & control, integration with existing systems, skill gaps, vendor lock-in, data management, performance management, security & compliance, and cost management & optimization.

What is the Opportunity in the U.S. Cloud Data Center Market?

The opportunity in the U.S. cloud data center market is linked to the increasing adoption of IoT devices.

• Increasing adoption of IoT devices: The benefits of IoT devices include sustainable manufacturing, investment needs, improved operational efficiency, improved supply chain, environmental benefits, energy management, broadened business opportunities, improved quality control, cybersecurity risks, real-time monitoring, increased revenue, asset performance optimization, improved efficiency, data driven decisions, cost reduction, automation, improved safety, improve business decisions, and more.

What are the Recent Developments in the U.S. Cloud Data Center Market?

• In June 2025, hyperscale and AI data center campuses in Thailand were launched by Data Edge Holdings (Singapore) in collaboration with B. Grimm Power.
• In June 2025, a new data center in the cloud center in South Korea was launched by Alibaba Cloud.

U.S. Cloud Data Center Market Companies:

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform (GCP)
• Oracle Cloud
• Equinix
• Digital Realty
• CyrusOne
• QTS Realty Trust
• Iron Mountain Data Centers

U.S. Cloud Data Center Market Segmentation:

By Service

• Infrastructure-as-a-service model (IaaS)
• Platform-as-a-service model (PaaS)
• Software-as-a-service model (SaaS)

By Deployment

• Public
• Private
• Hybrid

By Organization Size

• Small/Medium Enterprises
• Large Enterprises

By End-User

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & Telecom
• Others