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Americas Data Center Colocation Market Size, Share, Trends and Forecast 2026-2031 | AI and Cloud Demand Drive 12.13% CAGR and $53.66 Billion Revenue by 2031

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VRT Vantage Data Centers is making a significant $3 billion investment in a 224 MW NV1 campus in Reno, Nevada, indicating strong growth and expansion in the AI-focused data center market. WSC Flexential's 13 MW deployment for CoreWeave in Plano, Texas, and Core Scientific's expansion to over 260 MW for CoreWeave's AI infrastructure highlight significant demand for power and AI infrastructure, benefiting companies involved in these deployments. CORZ Core Scientific is expanding its capacity to over 260 MW for CoreWeave's AI infrastructure, indicating strong demand and growth in the AI data center sector. EQIX Equinix is a key colocation provider supporting direct access to cloud platforms and has sourced approximately 2.84 TWh of renewable electricity, aligning with AI and cloud growth trends and sustainability efforts. DLR Digital Realty is a major colocation provider supporting cloud platforms and is adopting HVO for backup generation to reduce CO2 emissions, aligning with sustainable data center operations and AI/cloud demand. AMPL While not directly mentioned, the article discusses power infrastructure and renewable energy procurement for data centers. Companies in the energy sector could be indirectly affected, but no specific sentiment is expressed. IBM IBM Cloud is mentioned as expanding infrastructure and network availability throughout the region, indicating growth and continued investment in cloud services which are a key driver for data center colocation. ORCL Oracle Cloud is mentioned as expanding infrastructure and network availability throughout the region, indicating growth and continued investment in cloud services which are a key driver for data center colocation. GOOG Google Cloud is mentioned as expanding infrastructure and network availability throughout the region, indicating growth and continued investment in cloud services which are a key driver for data center colocation. MSFT Microsoft Azure is mentioned as expanding infrastructure and network availability throughout the region, indicating growth and continued investment in cloud services which are a key driver for data center colocation. AMZN AWS is mentioned as expanding infrastructure and network availability throughout the region, indicating growth and continued investment in cloud services which are a key driver for data center colocation. APLD Applied Digital is listed as a key investor in the Americas data center colocation market, indicating its presence and potential for growth, but no specific performance metrics are provided. CDLX The article mentions AI and GPU-accelerated computing as drivers for data center growth. While not directly involved, companies leveraging AI could see indirect benefits. NTDOY The article focuses on data center colocation and AI infrastructure. Nintendo is not mentioned and has no direct relevance to the discussed market trends.

Americas Data Center Colocation Market Size, Share, Trends and Forecast 2026-2031 | AI and Cloud Demand Drive 12.13% CAGR and $53.66 Billion Revenue by 2031 Dublin, Oct. 05, 2026 (GLOBE NEWSWIRE) -- "Americas Data Center Colocation Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.

The Americas data center colocation market size by investment is projected to grow at a CAGR of 12.13% from 2025-2031. Expansion will be supported by hyperscale leasing, enterprise cloud adoption, artificial intelligence, GPU-accelerated computing, and high-performance computing workloads. By 2031, the market footprint is expected to reach 32.36 million sq. ft., while colocation revenue is forecast to total approximately USD 53.66 billion.

Operators are acquiring land and securing access to critical power infrastructure to establish long-term development pipelines. Although Northern Virginia remains the largest colocation hub, investment is spreading to markets including Seattle, Dallas, Reno, Winnipeg, Quebec City, Santiago, Bogota, Queretaro, and Sao Paulo. Chile, Colombia, Mexico, Argentina, and other Latin American markets are also gaining prominence as operators pursue renewable energy, connectivity, land, and geographic diversification.

Power Capacity and AI Infrastructure Investment

The Americas data center colocation market is forecast to add approximately 8,141 MW of power capacity by 2031. AI-ready campuses require higher rack densities, liquid cooling, expanded utility capacity, and resilient electrical systems. Operators are responding with renewable energy PPAs, on-site generation, BESS, fuel cells, and low-carbon backup power.

Major AI-focused investments include Vantage Data Centers' $3 billion, 224 MW NV1 campus in Reno, Nevada, and Flexential's 13 MW deployment for CoreWeave in Plano, Texas. Core Scientific is also expanding to more than 260 MW of critical IT load for CoreWeave's AI infrastructure. Partnerships such as Ascenty and Vertical Data are extending GPU-ready, liquid-cooling-enabled capacity across Brazil, Chile, Mexico, and Colombia.

Cooling infrastructure is evolving alongside these deployments. Liquid-based cooling is projected to record a CAGR of 17.84% during the forecast period as operators adopt direct-to-chip liquid cooling, immersion cooling, free cooling, and AI-driven controls. CRAC & CRAH Units retained the largest cooling-system share in 2025, while cooling systems led the mechanical infrastructure segment.

Colocation Revenue and Service Segmentation

The US will continue to generate most regional colocation revenue, supported by extensive interconnection ecosystems and sustained hyperscale investment. Wholesale colocation is expected to be the fastest-growing service segment as cloud and AI customers secure large blocks of capacity. Retail colocation represented approximately 57% of the market in 2025, reflecting enterprise demand for scalable rack space, power, bandwidth, cloud connectivity, and interconnection services.

Latin America is positioned for faster percentage growth. Colombia is projected to achieve the highest revenue CAGR at approximately 29%, followed by Mexico. Brazil accounts for nearly 60% of the Latin American data center colocation market, while Chile represents approximately 14% of regional investment. Argentina's colocation investment is forecast to increase at a CAGR of 27.45%.

Cloud Connectivity and Submarine Cable Development

Cloud-based services remain a central growth driver. AWS, Microsoft Azure, Google Cloud, IBM Cloud, and Oracle Cloud continue to expand infrastructure and network availability throughout the region. Colocation providers including Equinix, Digital Realty, Cologix, QTS Data Centers, and Flexential support direct access to cloud platforms, strengthening hybrid- and multi-cloud deployments.

Submarine cable investment is reinforcing the Americas digital infrastructure ecosystem. Miami, Virginia Beach, Myrtle Beach, and Fortaleza are attracting colocation development because of their proximity to cable landing stations. DC BLOX has integrated subsea connectivity with colocation capacity in Myrtle Beach, while MDC Data Centers is developing facilities in Cancun and Veracruz to support the MANTA submarine cable. Additional projects include V.tal's 6,027-mile Brazil-US Synapse cable, Millicom's TAM-1 integration, and Claro's AMX-1 landing point in Puerto Rico.

Renewable Energy and Sustainable Data Center Operations

Renewable energy procurement is accelerating as AI and cloud workloads increase electricity consumption. Equinix sourced approximately 2.84 TWh of renewable electricity across the Americas in 2025. Ascenty entered an agreement with Casa dos Ventos to secure an average of 110 MW for its Brazilian data centers.

Elea Data Centers' BEL1 facility in Belem is designed to operate on 100% renewable energy, while QScale uses hydroelectric power and free cooling at its Quebec campus. Digital Realty and CloudHQ have adopted HVO for backup generation, and Equinix has deployed Bloom Energy fuel cells at multiple facilities. Digital Realty expects the use of HVO at PDX12, SC1, and LAX12 to reduce CO? emissions by approximately 12,000 metric tons.

Market Constraints

Power availability, grid stability, construction costs, and equipment lead times remain significant barriers to development. PJM has warned of a potential 60 GW power shortfall over the next decade, while AEP's contracted capacity pipeline has reached 63 GW, with approximately 90% linked to data center demand. A July 2026 transmission outage in Northern Virginia disconnected facilities from the PJM grid and removed more than 3 GW of load.

Latin American markets face transmission limitations despite strong renewable resources. Chile curtailed more than 6,084 GWh of renewable energy in 2025 because of grid constraints. Across the Americas, competition for power-connected land is increasing development costs in Northern Virginia, Sao Paulo, Bogota, Queretaro, and other major hubs.

Construction costs have risen by approximately 3-5% across leading markets due to higher material, labour, electrical equipment, cooling, and energy expenses. Mexico's data center construction costs ranged from approximately $10.0 million to $10.5 million per MW in 2025. Operators are securing electricity contracts, substations, renewable PPAs, on-site generation, and BESS earlier in the development cycle to improve resilience and cost predictability.

Regional Market Outlook

Recent Data Center Colocation Developments

Competitive Landscape

The Americas data center colocation market includes established operators, regional providers, hyperscale developers, and new infrastructure platforms. Key investors include Applied Digital, Aligned Data Centers, Cirion Technologies, Cologix, CloudHQ, Compass Datacenters, CyrusOne, DataBank, Digital Realty, Elea Data Centers, Equinix, eStruxture Data Centers, KIO Data Centers, NTT DATA, QScale, QTS Data Centers, Scala Data Centers, STACK Infrastructure, and Vantage Data Centers.

New entrants such as Ada Infrastructure, Ardent Data Centers, Beacon Data Centers, CleanArc Data Centers, Crane Data Centers, Data District, Fleet Data Centers, Lambda, Layer 9 Data Centers, Prometheus Hyperscale, Rowan Digital Infrastructure, TECfusions, Terranova, and Tract are expanding competition. Market participants are prioritizing AI-ready facilities, hyperscale campuses, renewable energy procurement, advanced cooling, carrier-neutral connectivity, and access to power-rich development sites.

Market Segmentation

The market is analyzed by retail and wholesale colocation services; electrical, mechanical, and general construction infrastructure; air-based and liquid-based cooling; and Tier I & II, Tier III, and Tier IV standards. General construction held the largest infrastructure share in 2025, with core & shell development contributing approximately 48%. UPS systems represented around 28% of electrical infrastructure, while Tier III facilities led the market. Continued demand for fault-tolerant environments is also supporting Tier IV development across the US, Canada, Mexico, Colombia, and Chile.

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