Data Centers in United States

United States – The World’s Largest Data Center Market

The United States is the premier global market for digital infrastructure, offering unparalleled scale, connectivity, and access to cloud services. For any enterprise targeting North American or global audiences, a presence here is essential for minimizing latency and maximizing application performance. The sheer density of providers, networks, and cloud on-ramps ensures competitive pricing and technical flexibility.

United States: At A Glance

Network & Connectivity Ecosystem

The U.S. boasts the most mature and dense connectivity ecosystem in the world. Colocation facilities provide access to a massive number of networks, ensuring optimal routing and resilience for any workload.

Carrier Density & Carrier Neutrality: With over 166 unique network providers active in the market as of September 2025, carrier-neutral facilities offer extensive choice. This competition helps control costs and improve network performance.

Direct Cloud On-Ramps: Over 111 dedicated cloud on-ramps provide direct, low-latency connections into 54 distinct cloud regions as of September 2025. Major public clouds with a significant presence include AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): Major metropolitan areas feature multiple, large-scale IXPs run by operators like Equinix, DE-CIX, and LINX. These exchanges facilitate efficient, low-cost traffic peering between networks, content providers, and enterprises.

Bare Metal: Bare metal server options are widely available from coast to coast. Providers like Hivelocity and phoenixNAP offer dedicated servers in key data center hubs, enabling performance-sensitive applications that require direct hardware access.

Power Analysis

Power infrastructure in the United States is generally reliable, though costs and grid composition vary significantly by region.

Average Cost Of Power: The national average for industrial electricity is approximately $0.07/kWh as of Q2 2025. This competitive rate, especially in certain states with abundant energy resources, makes large-scale deployments economically viable. The national power mix consists of roughly 60% fossil fuels (primarily natural gas), 19% nuclear, and 22% renewables.

Power Grid Reliability: Major data center markets like Northern Virginia, Dallas, and Silicon Valley are supported by well-engineered power grids with redundant substations. These regions are built to handle the high-density power requirements of modern computing infrastructure.

Market Access, Business & Tax Climate

The U.S. offers strategic advantages for accessing customers and benefiting from a favorable business environment.

Proximity To Key Business Districts: Data centers are clustered near every major economic hub, including the financial centers of New York, the tech corridors of Silicon Valley, and the government and defense sectors in the Washington, D.C. area. This proximity reduces latency for critical local users and applications.

Regional Market Reach: The vast domestic network allows infrastructure located in central hubs like Chicago or Dallas to effectively serve the entire continental population with low latency. Coastal hubs act as gateways for transatlantic and transpacific data traffic.

Tax Advantage For Data Centers: Many states offer compelling tax incentives to attract data center investment. These programs often provide multi-year exemptions from sales and use taxes on equipment, software, and electricity, significantly lowering both initial capital expenditures and ongoing operational costs.

Natural Disaster Risk

The United States has an overall INFORM Risk score of 3.2 out of 10, placing it in the medium-risk category as of September 2025. While the national risk profile is moderate, specific regional hazards are significant and must be considered during site selection.

Key natural hazards to evaluate based on location include:

• Coastal Flood: High risk (8.4/10) in Atlantic and Gulf Coast regions.
• Earthquake: High risk (7.7/10) primarily along the West Coast.
• Tropical Cyclone: High risk (7.7/10) for states on the Atlantic and Gulf Coasts.
• River Flood: High risk (7.5/10) in various river basins nationwide.