Data Centers in United States

United States – The World's Largest Colocation Market

The United States is the most mature and densely interconnected data center market globally. For any organization serving North American users or requiring a low-latency gateway to Europe and Asia, deploying infrastructure here is essential for performance, reliability, and accessing the richest cloud ecosystem available. The sheer scale of the market provides unparalleled choice in providers, facilities, and network services, directly impacting application uptime and speed to market.

United States: At A Glance

Network & Connectivity Ecosystem

The US is the global center of gravity for network infrastructure. Its mature, competitive landscape offers virtually limitless options for building high-performance, resilient network architectures.

Carrier Density & Carrier Neutrality With over 166 unique network providers, as of September 2025, the US market offers unparalleled choice. Major hubs like Ashburn, Dallas, and Chicago host hundreds of carriers in carrier-neutral facilities, creating a hyper-competitive environment that drives down transit costs and improves performance.

Direct Cloud On-Ramps The US features over 111 dedicated cloud on-ramps connecting to 54 distinct cloud regions, as of September 2025. This density allows for secure, low-latency private connections directly to all major hyperscalers, including:

• Alibaba Cloud
• AWS
• Google Cloud (GCP)
• IBM Cloud
• Microsoft Azure
• Oracle Cloud

Internet Exchange Points (IXPs) Major peering exchanges are central to the US connectivity ecosystem. IXPs in key markets like Ashburn (DE-CIX, Equinix Ashburn), Dallas (DE-CIX Dallas), Chicago, and Los Angeles facilitate efficient traffic exchange, reducing latency and reliance on upstream transit providers.

Bare Metal Bare metal server availability is widespread across all major US markets. Providers like Hivelocity and phoenixNAP offer dedicated servers in key interconnection hubs, enabling hybrid cloud deployments and workloads that require direct hardware access.

Power Analysis

Power infrastructure in the United States is reliable and cost-effective, particularly in established data center markets that have invested heavily in supporting critical facilities.

Average Cost Of Power The average industrial electricity price is approximately $0.07/kWh, as of Q2 2025. This competitive rate, combined with a diverse energy mix, makes large-scale deployments financially viable and helps manage long-term operational expenses.

Power Grid Reliability In primary data center corridors like Northern Virginia, Dallas-Fort Worth, and Silicon Valley, the power grid is well-engineered with significant redundancy. Facilities are commonly served by multiple substations, and providers have deep experience ensuring uptime for mission-critical operations. The national energy mix is approximately 60% fossil fuels, 19% nuclear, and 22% renewables.

Market Access, Business & Tax Climate

The US provides direct access to the world's largest economy and a diverse, highly skilled workforce. Strategic colocation streamlines access to customers, partners, and financial markets.

Proximity To Key Business Districts Data centers are clustered near major economic zones. Facilities in Northern Virginia serve the government and defense sectors in Washington, D.C., while hubs in New York/New Jersey support Wall Street. Silicon Valley colocation provides low-latency access to the world's top technology firms.

Regional Market Reach A presence in the United States provides a strategic foundation for serving all of North America. Coastal hubs in Virginia and California also function as critical gateways for transatlantic and transpacific traffic, connecting businesses to markets in Europe and Asia-Pacific.

Tax Advantage For Data Centers Many states offer significant tax incentives to attract data center investment. These programs frequently provide exemptions from state sales and use tax on the purchase of servers, networking gear, and electricity, which substantially lowers both initial capital costs and ongoing operational expenses.

Natural Disaster Risk

The overall natural disaster risk for the United States is moderate, with an INFORM Risk score of 3.2 out of 10, as of September 2025. However, risk exposure is highly regional, making geographic diversification and careful site selection essential.

Key risks vary by location and include:

• Coastal Flood: A high-risk factor (8.4/10) for facilities located in low-lying coastal areas.
• Earthquake: A significant risk (7.7/10), primarily concentrated along the West Coast, particularly in California.
• Tropical Cyclone: A major consideration (7.7/10) for data centers along the Gulf Coast and the Atlantic seaboard.
• River Flood: A notable risk (7.5/10) in various floodplains across the country.