Surging demand for data consumption and storage is driving rapid expansion in data centers across the United States. These US data centers are strategically located in areas offering abundant electricity to meet their intense power demands, significant amounts of water for cooling, access to fiber optic connectivity, affordable real estate, tax incentives, and are typically situated away from regions prone to natural disasters.

Data centers in the United States are primarily located in Northern Virginia, Phoenix, Dallas, Atlanta, Chicago, Northern California (Silicon Valley), Portland (including Hillsboro, Oregon), New York & New Jersey, Seattle (including Quincy, Washington), and Los Angeles.

Dgtl Infra provides an overview and key facts about data centers in the United States, including details on the top 10 data center locations in the US. For each of the largest data center markets in the United States, we highlight its size in terms of multi-tenant commissioned power, main power supply providers, average electricity rates per kilowatt-hour (kWh), major connectivity hubs, as well as its key retail colocation, wholesale data center, and cloud/hyperscale operators.

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Data Centers in the US

Data centers in the US are highly-specialized buildings equipped with power and cooling infrastructure that house computer servers and network equipment. Common questions about data centers in the US are as follows:

Where are Data Centers in the United States?

The primary data center markets in the United States are located in Northern Virginia, Phoenix, Dallas, Atlanta, Chicago, Northern California (Silicon Valley), Portland (including Hillsboro, Oregon), New York & New Jersey, Seattle (including Quincy, Washington), and Los Angeles.

The secondary data center markets in the United States are located in cities including Austin, Boston, Charlotte, Columbus, Denver, Houston, Kansas City, Las Vegas, Miami, Minneapolis, Salt Lake City, and San Antonio.

How Many Data Centers are in the United States?

In the United States, there are over 2,500 data centers. Of this total, approximately 50% are located in the primary data center markets like Northern Virginia, Dallas, and Northern California (Silicon Valley), while the remaining approximately 50% are scattered throughout many smaller secondary data center markets like Denver, Houston, and Minneapolis.

Who Owns the Most Data Centers in the United States?

Digital Realty owns the most data centers in the United States with 124 facilities, comprising 1,323 megawatts of white space IT load across 22.9 million net rentable square feet.

Equinix operates the second most data centers in the United States with 76 facilities, however, the company only owns the underlying real estate for approximately 60% of these sites, with remaining approximately 40% being leased facilities.

What is the Largest Data Center in the United States?

The largest data center in the United States is owned by Meta Platforms (Facebook), spanning a total of 4.6 million square feet, which is located in Prineville, Oregon, a city situated approximately 150 miles southeast of Portland.

Prineville, Oregon Facebook Data Center
Source: Meta Platforms (Facebook).

READ MORE: Facebook’s 18 Data Centers – $20bn Investment, 40m Square Feet

In 2010, Meta Platforms (Facebook) broke ground on its Prineville, Oregon data center campus at 735 S.W. Connect Way, with its initial buildings coming on-line in 2011. Cumulatively, the company is building 11 data centers at this campus as part of a more than $2 billion investment, which will span a total of 4.6 million square feet.

United States Data Centers – Top 10 Locations

The top 10 data center locations in the United States are Northern Virginia, Phoenix, Dallas, Atlanta, Chicago, Northern California (Silicon Valley), Portland (including Hillsboro, Oregon), New York & New Jersey, Seattle (including Quincy, Washington), and Los Angeles. Collectively, these 10 markets comprise 1,230 data centers with 10,715 megawatts of multi-tenant commissioned power:

#LocationData CentersMegawatts
1Northern Virginia3003,945
2Phoenix1001,380
3Dallas1501,125
4Atlanta801,065
5Chicago110805
6Northern California (Silicon Valley)160790
7Portland (including Hillsboro)50540
8New York & New Jersey145450
9Seattle (including Quincy)70395
10Los Angeles65220
Total1,23010,715

1. Northern Virginia Data Centers

Northern Virginia is the largest data center market in the United States and comprises several counties located 20 to 40 miles west of Washington, D.C., the nation’s capital. More specifically, Northern Virginia includes Loudoun County (Ashburn, Sterling, Leesburg, Arcola), Prince William County (Manassas, Gainesville, Haymarket), and Fairfax County (Reston, Herndon, Chantilly, Vienna, McLean, Tysons), amongst others.

Amazon Web Services AWS Data Center in Northern Virginia Computing Facility
Source: Amazon Web Services (AWS). Data center in Northern Virginia.

Characteristics of Northern Virginia’s Data Centers

  • Size: Over 300 data centers and 3,945 megawatts of multi-tenant commissioned power
  • Power Supply: Dominion Energy is the largest electric utility serving Northern Virginia and NOVEC (Northern Virginia Electric Cooperative) is another important provider
  • Electricity Rates: Average between $0.06 to $0.08 per kilowatt-hour (kWh)
  • Major Connectivity Hub: 21715 Filigree Court in Ashburn, Virginia, which is operated by Equinix as its DC2 site

Key Data Center Operators in Northern Virginia

  • Retail Colocation: Equinix, CoreSite, Centersquare, DataBank
  • Wholesale Data Center: Digital Realty, CyrusOne, CloudHQ, NTT Global Data Centers
  • Cloud / Hyperscale: Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Meta Platforms (Facebook)

READ MORE: Virginia Data Centers – Ashburn, Loudoun, and Beyond

2. Phoenix Data Centers

Phoenix, Arizona and its metro area, including Chandler, Mesa, Tempe, Scottsdale, Goodyear, and Glendale, comprise the second-largest data center market in the United States.

Iron Mountain Phoenix Arizona Data Center United States US America U.S.
Source: Iron Mountain. Data center located in Phoenix, Arizona.

Characteristics of Phoenix’s Data Centers

  • Size: Over 100 data centers with 1,380 megawatts of multi-tenant commissioned power
  • Power Supply: Arizona Public Service (APS) is the largest electric utility in Arizona and Salt River Project (SRP) is a public electric utility serving the Phoenix metro area
  • Electricity Rates: Average between $0.065 to $0.075 per kilowatt-hour (kWh)
  • Major Connectivity Hub: 120 East Van Buren Street in downtown Phoenix, which is operated by Digital Realty

Key Data Center Operators in Phoenix

  • Retail Colocation: Digital Realty*, phoenixNAP, Centersquare, Flexential
  • Wholesale Data Center: CyrusOne, Iron Mountain, Aligned Data Centers, Compass Datacenters
  • Cloud / Hyperscale: Microsoft Azure, Oracle Cloud, Meta Platforms (Facebook), Apple

READ MORE: Phoenix Data Centers – Colocation in the Silicon Desert

*Digital Realty also operates a major wholesale data center in Phoenix.

3. Dallas Data Centers

Dallas, Texas and its neighboring suburbs, including Allen, Carrollton, Fort Worth, Frisco, Garland, Irving, Lewisville, Plano, and Richardson, comprise the third-largest data center market in the United States.

Equinix Dallas Data Center Infomart Colocation Building
Source: Equinix. Data center located in Dallas, Texas.

Characteristics of Dallas’ Data Centers

  • Size: Over 150 data centers and 1,125 megawatts of multi-tenant commissioned power
  • Power Supply: ERCOT (Electric Reliability Council of Texas) operates an independent power grid which represents approximately 90% of the electricity consumption in the state of Texas
  • Electricity Rates: Average between $0.05 to $0.065 per kilowatt-hour (kWh)
  • Major Connectivity Hub: Infomart carrier hotel at 1950 North Stemmons Freeway in downtown Dallas, which is operated by Equinix as their DA1, DA2, DA3, and DA6 data centers

Key Data Center Operators in Dallas

  • Retail Colocation: Equinix, DataBank, Flexential, Centersquare
  • Wholesale Data Center: Digital Realty, CyrusOne, QTS Data Centers, STACK Infrastructure
  • Cloud / Hyperscale: IBM Cloud, Google Cloud, Meta Platforms (Facebook), Amazon Web Services (AWS)

READ MORE: Dallas Data Centers – Everything is Bigger in Texas

4. Atlanta Data Centers

Atlanta, Georgia and its neighboring suburbs, including Alpharetta, Douglasville, East Point, Lithia Springs, and Suwanee, comprise the fourth-largest data center market in the United States.

Google Lithia Springs Douglas County Georgia Data Center Exterior Outside Atlanta Computing Facility
Source: Google. Data center located in Lithia Springs, Douglas County, Georgia.

Characteristics of Atlanta’s Data Centers

  • Size: Over 80 data centers with 1,065 megawatts of multi-tenant commissioned power
  • Power Supply: Georgia Power, a subsidiary of Southern Company, is the largest electric utility in Georgia
  • Electricity Rates: Average between $0.05 to $0.06 per kilowatt-hour (kWh)
  • Major Connectivity Hub: 56 Marietta Street in downtown Atlanta, which is operated by Digital Realty

Key Data Center Operators in Atlanta

  • Retail Colocation: Equinix, DataBank, Flexential, Switch
  • Wholesale Data Center: QTS Data Centers, Digital Realty, STACK Infrastructure, Serverfarm
  • Cloud / Hyperscale: Microsoft Azure, Google, Meta Platforms (Facebook), Twitter (X), Uber

5. Chicago Data Centers

Chicago, Illinois and its neighboring suburbs, including Aurora, Elk Grove Village, Franklin Park, Hoffman Estates, and Northlake, comprise the fifth-largest data center market in the United States.

350 East Cermak Road Data Center Exterior
Source: Equinix. Data center located in Chicago, Illinois.

Characteristics of Chicago’s Data Centers

  • Size: Over 110 data centers with 805 megawatts of multi-tenant commissioned power
  • Power Supply: Commonwealth Edison (ComEd) is the largest electric utility in Illinois and the sole electric provider in Chicago
  • Electricity Rates: Average between $0.065 to $0.07 per kilowatt-hour (kWh)
  • Major Connectivity Hub: 350 East Cermak Road in downtown Chicago, which is operated by Equinix (as its CH1, CH2, CH4 sites) and Digital Realty

Key Data Center Operators in Chicago

  • Retail Colocation: Equinix, CoreSite, Centersquare, TierPoint
  • Wholesale Data Center: Digital Realty, CyrusOne, QTS Data Centers, STACK Infrastructure
  • Cloud / Hyperscale: Microsoft Azure, Meta Platforms (Facebook), Amazon Web Services (AWS), Apple

READ MORE: Chicago Data Centers – Colocation in the Central U.S.

6. Northern California (Silicon Valley) Data Centers

Northern California, also known as Silicon Valley, which comprises the cities of Santa Clara, San Jose, Sunnyvale, Palo Alto, Milpitas, San Francisco, and Sacramento, is the sixth-largest data center market in the United States.

Equinix Data Center Campus 5 7 9 11 Great Oaks Boulevard San Jose California
Source: Equinix. Data center located in San Jose, California.

Characteristics of Northern California’s Data Centers

  • Size: Over 160 data centers with 790 megawatts of multi-tenant commissioned power
  • Power Supply: Pacific Gas & Electric (PG&E) and Silicon Valley Power (SVP) are the main power providers
  • Electricity Rates: Santa Clara average of approximately $0.10 per kilowatt-hour (kWh) and Silicon Valley (excluding Santa Clara) averages between $0.12 to $0.15 per kWh
  • Major Connectivity Hub: 5, 7, 9, and 11 Great Oaks Boulevard in South San Jose, which is operated by Equinix as its SV1, SV5, SV10, and SV11 facilities

Key Data Center Operators in Northern California (Silicon Valley)

  • Retail Colocation: Equinix, CoreSite, Centersquare, Cologix
  • Wholesale Data Center: Digital Realty, Vantage Data Centers, STACK Infrastructure, NTT Global Data Centers
  • Cloud / Hyperscale: Amazon Web Services (AWS), Microsoft Azure, Alibaba Cloud, Oracle Cloud

READ MORE: Northern California Data Centers – Silicon Valley

7. Portland and Hillsboro Data Centers

Portland, Oregon and its western suburb, Hillsboro, comprise the seventh-largest data center market in the United States.

Google The Dalles Wasco County Oregon Data Center Exterior Computing Facility
Source: Google. Data center located in The Dalles, Wasco County, Oregon.

Characteristics of Portland’s Data Centers

  • Size: Over 50 data centers with more than 540 megawatts of multi-tenant commissioned power
  • Power Supply: Portland General Electric (PGE) and Pacific Power (PacifiCorp) are the main power providers
  • Electricity Rates: Average between $0.05 to $0.07 per kilowatt-hour (kWh)
  • Major Connectivity Hub: Pittock Block at 921 Southwest Washington Street in downtown Portland, which is operated by 1547 Critical Systems Realty (CSR)

Key Data Center Operators in Portland

  • Retail Colocation: Digital Realty*, EdgeConneX, H5 Data Centers, Digital Fortress
  • Wholesale Data Center: NTT Global Data Centers, QTS Data Centers, Flexential, STACK Infrastructure
  • Cloud / Hyperscale: Amazon Web Services (AWS), Google Cloud, Meta Platforms (Facebook), Apple, Twitter (X), TikTok
    • Note: These cloud service providers (CSPs) and large internet companies have located many of their data centers in the central and eastern parts of Oregon. For example, the cities of Prineville and The Dalles, as well as Morrow County and Umatilla County, are all home to hyperscale data centers

*Digital Realty also operates a major wholesale data center campus in Hillsboro, Oregon.

8. New York and New Jersey Data Centers

New York and New Jersey, including the towns of Orangeburg, Piscataway, and Secaucus, comprise the eighth-largest data center market in the United States.

Equinix Carrier Hotels Located at 755 and 800 Secaucus Road Secaucus New Jersey near New York City
Data center located in Secaucus, New Jersey.

Characteristics of New York and New Jersey’s Data Centers

  • Size: Over 145 data centers with more than 450 megawatts of multi-tenant commissioned power
  • Power Supply: Consolidated Edison (ConEd), Public Service Electric and Gas Company (PSE&G), and Jersey Central Power & Light (FirstEnergy) are the main power providers
  • Electricity Rates: New York average between $0.14 to $0.16 per kilowatt-hour (kWh) and New Jersey average between $0.10 to $0.12 per kWh
  • Major Connectivity Hub: 60 Hudson Street and 111 8th Avenue in Manhattan, New York City, which are both operated by Digital Realty. Also, 755 and 800 Secaucus Road in Secaucus, New Jersey, which is operated by Equinix as its NY2, NY4, NY5, and NY6 sites

Key Data Center Operators in New York and New Jersey

  • Retail Colocation: Equinix, DataBank, TierPoint, 1547 CSR
  • Wholesale Data Center: Digital Realty, QTS Data Centers, CyrusOne, Iron Mountain
  • Cloud / Hyperscale: No cloud regions

9. Seattle and Quincy Data Centers

Seattle, Washington and its suburb of Tukwila, as well as the cities of Quincy and East Wenatchee in central Washington, comprise the ninth-largest data center market in the United States.

Microsoft Azure Data Center Building Exterior in Washington State United States US U.S.
Source: Microsoft. Data center located in Washington State.

Characteristics of Seattle’s Data Centers

  • Size: Over 70 data centers with more than 395 megawatts of multi-tenant commissioned power
  • Power Supply: Seattle City Light, Grant County Public Utility District (PUD), and Douglas County Public Utility District (PUD) are the main power providers
  • Electricity Rates: Seattle average between $0.07 to $0.08 per kilowatt-hour (kWh) and Quincy / East Wenatchee averages between $0.028 to $0.035 per kWh
  • Major Connectivity Hub: Westin Building Exchange at 2001 6th Avenue in downtown Seattle, which is operated by Digital Realty

Key Data Center Operators in Seattle

  • Retail Colocation: Digital Realty, Equinix, Centersquare, Digital Fortress
  • Wholesale Data Center: Sabey Data Centers, Vantage Data Centers, H5 Data Centers, CyrusOne
  • Cloud / Hyperscale: Microsoft Azure, Google

10. Los Angeles Data Centers

Los Angeles, California and its neighboring suburbs, including Burbank, El Segundo, and Irvine, comprise the tenth-largest data center market in the United States.

CoreSite One Wilshire Building Exterior Located at 624 S Grand Ave in Los Angeles California
Data center located in Los Angeles, California.

Characteristics of Los Angeles’ Data Centers

  • Size: Over 65 data centers with more than 220 megawatts of multi-tenant commissioned power
  • Power Supply: Southern California Edison (SCE) is the primary power provider
  • Electricity Rates: Average between $0.14 to $0.18 per kilowatt-hour (kWh)
  • Major Connectivity Hub: One Wilshire at 624 South Grand Avenue in downtown Los Angeles, which is operated by CoreSite as its LA1 site

Key Data Center Operators in Los Angeles

  • Retail Colocation: CoreSite, Equinix, Centersquare
  • Wholesale Data Center: Digital Realty, Serverfarm, Prime Data Centers
  • Cloud / Hyperscale: Google Cloud

READ MORE: Top 250 Data Center Companies in the World

Frequently Asked Questions

What are the Main Factors Driving the Rapid US Data Center Expansion?

The rapid expansion of data centers in the US is primarily driven by:

  • Data Growth: Exponential growth in data generation and consumption, fueled by the increasing adoption of cloud computing, artificial intelligence (AI), and Internet of Things (IoT) technologies
  • Performance Requirements: Demand for low-latency, high-bandwidth data processing and storage solutions, pushing companies to establish data centers closer to end users, to support their applications and services

What Services do Data Centers in the United States of America (USA) Offer?

Data centers in the United States of America (USA) offer a wide range of services to support the IT infrastructure and data management needs of businesses and organizations. Key services provided by data centers in America include:

  • Colocation: Data centers provide secure physical space, power, cooling, and network connectivity for businesses to house their own servers and IT equipment
  • Cloud Hosting: Many data centers offer cloud hosting services, allowing businesses to host their applications, data, and services on virtual servers
  • Managed Services: Data centers may provide managed IT services, such as server management, network management, security management, and data backup and recovery
Mary Zhang covers Data Centers for Dgtl Infra, including Equinix (NASDAQ: EQIX), Digital Realty (NYSE: DLR), CyrusOne, CoreSite Realty, QTS Realty, Switch Inc, Iron Mountain (NYSE: IRM), Cyxtera (NASDAQ: CYXT), and many more. Within Data Centers, Mary focuses on the sub-sectors of hyperscale, enterprise / colocation, cloud service providers, and edge computing. Mary has over 5 years of experience in research and writing for Data Centers.

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