North America Data Center Colocation Market Size, Share & Forecast to 2035

The North America Data Center Colocation Market is valued at USD 30.07 billion in 2026 and is projected to reach USD 69.85 billion by 2035, up from USD 26.67 billion in 2025, a CAGR of 10.11% from 2025 to 2035 (DC Market Insights estimate). North America Data Center Colocation covers the rent that third-party operators in the United States, Canada and Mexico bill for space, power and cooling in their buildings, plus the cross-connects and interconnection ports sold inside them. The money in this market is now set by grid access rather than by floor space: the Public Utility Commission of Texas, the Virginia State Corporation Commission, the Federal Energy Regulatory Commission (FERC) and the Alberta Electric System Operator (AESO) all wrote new large-load rules between June 2025 and March 2026, and every one of them raises the cost or the wait for a new 75 MW hall. Operators with energised capacity can therefore re-price old contracts: Digital Realty reported that rents on leases renewed in the second quarter of 2026 rose 25.4% on a cash basis (Source: Digital Realty, July 2026). DC Market Insights builds the 2025 value from about 11,800 MW of billed colocation IT load at a blended USD 172 per kW-month, plus a 9.5% interconnection layer, which gives USD 26.67 billion.

Wholesale colocation is both the largest and the fastest type, at USD 13.87 billion in 2025 and 11.69% a year to 2035, because cloud and AI tenants now sign 20 MW to 100 MW blocks. Mexico is the fastest sub-region at 13.50% a year, led by the Querétaro cluster, while the US East keeps the lead with 43.0% of 2025 revenue.

Key Market Statistics: How Big Is the North America Data Center Colocation Market in 2026?

DC Market Insights values the North America Data Center Colocation Market at USD 30.07 billion in 2026, 12.74% above the USD 26.67 billion of 2025.

• Market size 2025: USD 26.67 billion; 2026: USD 30.07 billion; 2030: USD 48.55 billion; 2035: USD 69.85 billion.
• CAGR 2025-2035: 10.11% in the base case, 8.20% in the low case and 11.66% in the high case.
• CAGR 2020-2025: 15.42%, from USD 13.02 billion in 2020.
• Largest and fastest colocation type: wholesale colocation, USD 13.87 billion in 2025 (52.0%), 11.69% a year.
• Largest tenant group: hyperscale cloud and AI platforms, USD 12.53 billion in 2025 (47.0%), rising to 58.0% by 2035.
• Leading sub-region: US East with USD 11.47 billion (43.0%); fastest: Mexico at 13.50% a year.
• Largest metro market: Northern Virginia, with 27.5% of 2025 North America colocation revenue.
• Country split 2025: United States 89.5% (USD 23.87 billion), Canada 7.4% (USD 1.97 billion), Mexico 3.1% (USD 826.74 million).
• Billed colocation IT load: about 11,800 MW in 2025, about 31,500 MW in 2035 (DC Market Insights estimate).
• Market leader: Equinix, with the top five operators holding about 41% of 2025 revenue.

Executive Summary: What Is Driving North America Colocation Revenue to USD 69.85 Billion?

The North America Data Center Colocation Market size was valued at USD 13.02 billion in 2020, reached USD 26.67 billion in 2025, and is anticipated to reach USD 69.85 billion by 2035, at a CAGR of 10.11% during the forecast period.

Attribute	Detail
Historical period	2020-2024
Base year	2025
Forecast period	2026-2035
Market size 2025	USD 26.67 billion
Market size 2026	USD 30.07 billion
CAGR 2025-2035	10.11%
Market size 2035	USD 69.85 billion

Growth slows from 15.42% a year in 2020-2025 to 10.11% a year in 2025-2035 because the billed load still rises 10.32% a year, from 11,800 MW to 31,500 MW, while the blended rent eases from USD 176 per kW-month in 2030 to USD 168 per kW-month in 2035 as large wholesale blocks take a bigger share of the mix. The 2026 step of USD 3.40 billion comes mostly from halls already leased: Digital Realty alone reported a signed-but-not-commenced backlog of USD 1.9 billion of annualised rent at the end of June 2026 (Source: Digital Realty, July 2026).

What Does the North America Data Center Colocation Market Include?

The North America Data Center Colocation Market includes USD 26.67 billion of 2025 revenue from three lines: wholesale space and power, retail cabinets and cages, and interconnection.

Included

Wholesale colocation (powered shells and turnkey halls leased in blocks of about 1 MW and above), retail colocation (cabinets, cages and suites under 1 MW with power billed per kW), and interconnection services (cross-connects, exchange ports and cloud on-ramps sold inside colocation buildings). All three are counted at billed rent, in the United States, Canada and Mexico.

Excluded

Data centers that cloud providers own and run for themselves, construction and fit-out spending, managed hosting and managed services sold on top of space, public cloud IaaS fees, and electricity passed through at cost where an operator re-bills it separately. Managed hosting is the main reason this value sits below the USD 29.13 billion North America figure in the Internet Data Center (IDC) Market report.

How the North America Report Fits the Global Colocation Report

The North America Data Center Colocation Market is the North America slice of the global Data Center Colocation Market, using the same definition of colocation type and the same 2025 base year. The global report sets the worldwide totals; the North America edition adds the sub-regional split, 12 metro markets and the large-load rules that only apply in the United States and Canada.

Why Is North America Colocation Demand Still Rising in 2026?

Billed colocation load in North America rises from 11,800 MW in 2025 to about 20,900 MW in 2030, DC Market Insights estimates, because three forces push tenants out of self-built halls and into leased ones.

Grid Queues Make Energised Colocation Halls Worth More

The Electric Reliability Council of Texas (ERCOT) reported about 226 GW of large-load connection requests in November 2025, up from 63 GW a year earlier, with data centers making up about 73% of the total (Source: ERCOT). Against that queue, ERCOT approved only about 2,168 MW to energise in the 12 months to March 2026 (Source: ERCOT Large Load Working Group, March 2026). A tenant that needs 30 MW in 2027 cannot wait for a new connection, so it leases capacity that an operator already holds. DC Market Insights links about USD 1.20 billion of the 2026 revenue gain to tenants taking energised halls rather than building their own.

AI Inference Clusters Move Into Metro Colocation Sites

Hyperscale cloud and AI platforms pay USD 12.53 billion in 2025 colocation rent, 47.0% of the market, and DC Market Insights expects this to reach USD 40.52 billion by 2035 at 12.45% a year. Training clusters go to remote campuses, but inference needs low latency to users, so it lands in Dallas-Fort Worth, Atlanta, Chicago and Northern Virginia, where interconnection density is highest. Digital Realty signed two hyperscale leases worth USD 410 million of annualised rent at 100% share in July 2026 alone (Source: Digital Realty, July 2026).

Enterprise Hybrid Cloud Keeps Retail Colocation Growing

Retail colocation grows from USD 10.27 billion in 2025 to USD 20.96 billion in 2035, 7.40% a year, because banks, insurers and hospitals keep regulated workloads in cages next to cloud on-ramps. Digital Realty reported USD 77 million of new annualised rent from its 0-1 MW category in the fourth quarter of 2025 (Source: Digital Realty, February 2026). Equinix reported that its Americas revenue rose USD 249 million, or 6%, in 2025 (Source: Equinix Form 10-K, 2025), most of it from retail cabinets and interconnection.

Which Colocation Trends Are Changing How North American Tenants Buy?

Lease terms in North America colocation are getting longer and pricier: DC Market Insights estimates the average new wholesale term at about 12 years in 2026, against about 7 years in 2020.

Renewals Re-Price Old Contracts

Leases signed in 2018-2020 at about USD 100-120 per kW-month for wholesale space are now coming up for renewal in a market where new wholesale blocks sign at USD 140-190 per kW-month (DC Market Insights estimate). Digital Realty’s 25.4% cash re-leasing spread in the second quarter of 2026 shows the scale of this mark-to-market.

Liquid-Cooled Suites Become a Standard Product

DC Market Insights estimates that about 18% of wholesale colocation space delivered in North America in 2026 is designed for 50 kW or more per rack with direct-to-chip liquid cooling, against under 3% in 2022. These suites rent at a premium of about 15-25% per kW because the operator funds the coolant distribution units and heavier floors.

Interconnection Becomes a Separate Revenue Line

Interconnection services reach USD 2.53 billion in 2025 and USD 6.99 billion by 2035, 10.67% a year, because AI inference traffic between clouds, carriers and enterprises is billed per port and per cross-connect rather than per kW.

What Holds Back North America Colocation Growth?

Power delivery holds back North America colocation the most: DC Market Insights estimates that about 4,500 MW of colocation space signed by mid-2026 is waiting for a utility connection date.

Large-Load Tariffs Raise the Cost of New Capacity

The Virginia State Corporation Commission approved Dominion Energy’s GS-5 rate class in November 2025 for customers of 25 MW or more, with a 14-year minimum contract and minimum payments of 85% of contracted transmission and distribution demand (Source: Virginia State Corporation Commission, November 2025). Texas Senate Bill 6, signed in June 2025, sets a 75 MW large-load threshold, a screening study fee of at least USD 100,000 and remote-disconnect equipment for loads connecting after 31 December 2025 (Source: Texas Legislature, June 2025). DC Market Insights estimates these terms add about USD 6-10 per kW-month to the cost of a new Northern Virginia or Texas hall.

Equipment Lead Times Delay Deliveries

Large power transformers and switchgear still take about 100-130 weeks to deliver in 2026 (DC Market Insights estimate from operator disclosures), which pushes about 9% of planned 2027 colocation capacity into 2028 in the base case.

Where Are the Best North America Colocation Opportunities to 2035?

Two opportunities are worth more than USD 10 billion of added annual colocation revenue by 2035, DC Market Insights estimates.

Secondary US Metros With Spare Grid Capacity

Columbus (Ohio), Phoenix and Atlanta together add USD 9.08 billion of annual revenue between 2025 and 2035, growing at 14.11%, 12.27% and 11.82% a year. Operators that hold land with signed utility capacity in these metros can serve tenants that Northern Virginia cannot connect before 2028.

Mexico Near-Shore Colocation

Mexico grows from USD 826.74 million in 2025 to USD 2.93 billion in 2035, 13.50% a year, as US cloud providers and manufacturers that moved production to Mexico place regional capacity in Querétaro. Querétaro alone reaches USD 2.38 billion by 2035.

How Much Does Colocation Cost per kW in North America?

The blended North America colocation price is about USD 172 per kW-month in 2025, which equals about USD 2.26 million of annual revenue per billed MW (DC Market Insights estimate).

Year	Blended price (USD per kW-month)	Billed IT load (MW)	Market size (USD billion)
2020	158	6,300	13.02
2025	172	11,800	26.67
2030	176	20,900	48.55
2035	168	31,500	69.85

Retail cabinets in Northern Virginia, Dallas and Chicago price at about USD 250-350 per kW-month including power and cooling, while new wholesale blocks above 10 MW sign at about USD 140-190 per kW-month (DC Market Insights estimates). The blended price falls after 2030 only because wholesale grows from 52.0% to 60.0% of the mix; like-for-like rents keep rising with inflation escalators of about 3% a year.

Which Rules and Standards Shape Colocation in North America?

Five large-load rules issued between June 2025 and March 2026 cover markets worth about USD 12.53 billion of 2025 colocation revenue, DC Market Insights estimates.

FERC found on 18 December 2025 that the PJM Interconnection tariff lacked clear terms for co-located load and ordered PJM to offer new transmission services, with compliance filings due on 20 January 2026 and 16 February 2026 (Source: FERC, December 2025). The Public Utility Commission of Texas published proposed rule 16 TAC § 25.194 on 12 March 2026, which would require financial security and site control for projects to stay in the large-load queue (Source: Public Utility Commission of Texas, March 2026). In Canada, AESO set a one-time limit of 1,200 MW for new loads of 75 MW or more on 4 June 2025 (Source: AESO). The US Department of Energy reported that data centers used about 4.4% of US electricity in 2023 and could use 6.7% to 12% by 2028 (Source: US Department of Energy). Building standards that tenants ask for in contracts include ANSI/TIA-942 for facility tiers, SOC 2 and ISO/IEC 27001 for security controls, and the Health Insurance Portability and Accountability Act (HIPAA) for healthcare tenants.

Which Colocation Segment Carries the Value in North America?

Wholesale colocation carries the value with USD 13.87 billion, or 52.0% of 2025 revenue, and it grows fastest at 11.69% a year.

By Colocation Type

Colocation type	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Wholesale Colocation	13,867.85	52.0%	41,912.64	11.69%
Retail Colocation	10,267.54	38.5%	20,956.32	7.40%
Interconnection Services	2,533.55	9.5%	6,985.44	10.67%

By Tenant Type

Tenant type	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Hyperscale Cloud and AI Platforms	12,534.40	47.0%	40,515.55	12.45%
IT and Telecom	4,267.03	16.0%	8,731.80	7.42%
BFSI	3,333.62	12.5%	6,985.44	7.68%
Healthcare and Government	2,400.20	9.0%	5,588.35	8.82%
Other Enterprises	4,133.69	15.5%	8,033.26	6.87%

Banking, financial services and insurance (BFSI) tenants pay USD 3.33 billion in 2025, mostly for retail cages near trading venues in New York-New Jersey, Chicago and Toronto.

By Enterprise Size

Enterprise size	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Large Enterprises	22,935.29	86.0%	61,122.60	10.30%
Small and Medium Enterprises	3,733.65	14.0%	8,731.80	8.87%

Small and medium enterprises (SMEs) spend USD 3.73 billion in 2025, mostly on single cabinets and partial racks from regional operators such as DataBank, Flexential and Cologix.

DC Exclusive: The North America Large-Load Rule Tracker, 5 Rules Re-Pricing Colocation Power

The DC Market Insights Large-Load Rule Tracker maps 5 grid rules to the 2025 colocation revenue they touch. It is a DC Market Insights model and estimate that uses 17 inputs: 5 rule texts and 12 metro revenue estimates.

Rule	Date	Threshold and key term	Metro revenue exposed, 2025 (USD billion)	Effect on colocation
AESO interim large-load limit (Alberta)	4 June 2025	1,200 MW cap for loads of 75 MW and above	under 0.10	Caps new Alberta campuses; pushes Canadian demand to Toronto and Montreal
Texas Senate Bill 6	June 2025	75 MW; screening fee of at least USD 100,000; remote disconnect after 31 Dec 2025	2.53 (Dallas-Fort Worth)	Adds study cost and curtailment risk; favours operators with signed capacity
Virginia SCC GS-5 rate class	November 2025 (effective January 2027)	25 MW; 14-year minimum; 85% transmission and distribution minimum demand	7.33 (Northern Virginia)	Raises the floor cost of new halls; lifts renewal rents on energised space
FERC order on PJM co-location	18 December 2025	New transmission services for co-located load	10.00 (Northern Virginia, Chicago, Columbus)	Opens on-site generation paths for campuses; clearer costs from 2026
PUCT proposed 16 TAC § 25.194	12 March 2026	Financial security and site control to stay in queue	2.53 (Dallas-Fort Worth)	Removes speculative requests; shortens waits for funded projects

The tracker shows that metros worth USD 10.00 billion, or 37.5% of 2025 revenue, sit inside the PJM footprint that the FERC order covers, so the PJM compliance tariffs will set the cost of most new US East colocation capacity from 2027.

Which Region Leads the North America Data Center Colocation Market?

The US East leads with USD 11.47 billion, or 43.0% of 2025 revenue, and Mexico grows fastest at 13.50% a year to 2035 because near-shore cloud regions in Querétaro start from a small base.

Sub-region	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
US East	11,467.64	43.0%	26,893.94	8.90%
US Central and South	6,533.89	24.5%	19,559.23	11.59%
US West	5,867.17	22.0%	15,367.97	10.11%
Canada	1,973.50	7.4%	5,099.37	9.96%
Mexico	826.74	3.1%	2,933.88	13.50%

US East

Northern Virginia alone bills USD 7.33 billion in 2025, but its share of the region falls as the GS-5 terms and PJM queues slow new connections; Atlanta grows at 11.82% a year and takes part of that demand.

US Central and South

Dallas-Fort Worth bills USD 2.53 billion in 2025 and grows at 11.22% a year, and Columbus (Ohio) is the fastest large metro at 14.11% a year as cloud campuses around New Albany fill.

US West

Phoenix grows at 12.27% a year to USD 5.94 billion by 2035, while Silicon Valley grows at only 7.26% because of power limits in the Santa Clara grid.

Canada

Canada bills USD 1.97 billion in 2025; Toronto (USD 960.08 million) serves banks and government tenants, and Montreal (USD 586.72 million) sells hydro-powered capacity at 10.60% annual growth while Alberta’s 1,200 MW cap limits campus growth in the west.

Mexico

Mexico bills USD 826.74 million in 2025, and Querétaro holds USD 640.05 million of it, 77.4% of Mexican colocation revenue.

How Big Is the Colocation Data Centre Market in the USA and the Top Metros?

The United States holds 89.5% of North America colocation revenue, USD 23.87 billion in 2025, and Northern Virginia is the largest metro with USD 7.33 billion.

Rank	Metro market	Sub-region	2025 (USD million)	2035 (USD million)	CAGR 2025-2035
1	Northern Virginia	US East	7,333.96	16,066.51	8.16%
2	Dallas-Fort Worth	US Central and South	2,533.55	7,334.71	11.22%
3	Phoenix	US West	1,866.83	5,937.62	12.27%
4	Chicago	US Central and South	1,733.48	4,191.26	9.23%
5	Silicon Valley	US West	1,733.48	3,492.72	7.26%
6	Atlanta	US East	1,600.14	4,889.81	11.82%
7	New York-New Jersey	US East	1,333.45	2,654.47	7.13%
8	Hillsboro-Portland	US West	1,066.76	2,933.88	10.65%
9	Toronto	Canada	960.08	2,375.05	9.48%
10	Columbus (Ohio)	US Central and South	933.41	3,492.72	14.11%
11	Queretaro	Mexico	640.05	2,375.05	14.01%
12	Montreal	Canada	586.72	1,606.65	10.60%

Columbus (Ohio) is the fastest large metro at 14.11% a year, overtaking Toronto by 2027 in the base case.

How Could the 2035 North America Colocation Forecast Change?

The 2035 value ranges from USD 58.68 billion to USD 80.33 billion around the USD 69.85 billion base case, DC Market Insights estimates.

Scenario	2035 (USD billion)	CAGR 2025-2035	What has to happen
Low	58.68	8.20%	Grid connections slip by 18 months in PJM and ERCOT; AI inference stays in cloud-owned halls
Base	69.85	10.11%	Billed load reaches 31,500 MW; rents ease to USD 168 per kW-month on mix
High	80.33	11.66%	On-site generation under the FERC co-location services speeds campus delivery; renewal spreads stay above 15%

Who Are the Leading North America Data Center Colocation Companies?

The top five operators, Equinix, Digital Realty, QTS Data Centers, CyrusOne and Vantage Data Centers, hold about 41% of 2025 North America colocation revenue, or USD 10.93 billion (DC Market Insights estimate from filings and announced capacity).

• Equinix
• Digital Realty
• QTS Data Centers
• CyrusOne
• Vantage Data Centers
• Aligned Data Centers
• CoreSite
• Iron Mountain Data Centers
• Switch
• STACK Infrastructure
• Cologix
• DataBank
• Flexential
• NTT Global Data Centers
• Compass Datacenters
• eStruxture
• KIO Data Centers

Equinix reported 2025 revenue of USD 9.22 billion worldwide and Americas revenue growth of 6% (Source: Equinix Form 10-K). Digital Realty reported 2025 revenue of about USD 6.11 billion and USD 400 million of annualised rent in total bookings at 100% share in the fourth quarter of 2025, then USD 307 million in the second quarter of 2026 (Source: Digital Realty second-quarter 2026 results). Iron Mountain reported that its data center revenue rose 30% to USD 803 million in 2025 and that it signed 63 MW of new and expansion leases (Source: Iron Mountain proxy statement). Retail leaders win on interconnection density, while wholesale operators such as QTS, Vantage, Aligned and STACK win on land and signed utility capacity. For the operators that run multi-tenant buildings worldwide, see the Multi-Tenant Data Center Market.

What Changed in North America Colocation in 2025 and 2026?

Six dated events between June 2025 and July 2026 changed the price and timing of North America colocation capacity.

• In July 2026, Digital Realty signed two hyperscale leases worth USD 410 million of annualised rent at 100% share and reported a USD 1.9 billion backlog (Source: Digital Realty).
• In March 2026, the Public Utility Commission of Texas published proposed rule 16 TAC § 25.194 on large-load interconnection standards (Source: Public Utility Commission of Texas).
• In February 2026, Equinix reported 2025 revenue of USD 9.22 billion, with Americas revenue up USD 249 million (Source: Equinix Form 10-K).
• In December 2025, FERC ordered PJM to set clear tariff rules and new transmission services for co-located large loads (Source: FERC).
• In November 2025, the Virginia State Corporation Commission approved the GS-5 rate class for customers of 25 MW and above (Source: Virginia State Corporation Commission).
• In June 2025, AESO set a 1,200 MW interim limit for new large loads in Alberta, against more than 16 GW requested by 29 projects (Source: AESO).

Analyst Takeaways: What Should North America Colocation Buyers and Investors Do?

Four takeaways follow from the USD 69.85 billion 2035 forecast, DC Market Insights concludes.

• USD 10.00 billion of 2025 revenue sits in PJM metros, so tenants should lock 2027-2028 capacity now, because the FERC compliance tariffs will set new US East power costs.
• 14.11% a year in Columbus (Ohio) and 12.27% in Phoenix beat the 10.11% market rate, because these metros still have signed utility capacity.
• 25.4% cash renewal spreads mean old wholesale contracts re-price upward, because energised space is scarce until queues clear.
• 13.50% a year in Mexico makes Querétaro the fastest-growing sub-region, because near-shore cloud regions start from USD 826.74 million.

How the Model Sizes North America Colocation: Methodology in Numbers

The model multiplies about 11,800 MW of billed colocation IT load by USD 172 per kW-month and 12 months, then adds a 9.5% interconnection layer, to reach USD 26.67 billion for 2025.

DC Market Insights counted billed load across 12 metro markets and 3 countries, split revenue by 3 segment dimensions and 5 sub-regions, and reconciled 12 facts from filings and regulators; every split sums to the total in every year. Three bound checks hold. Ceiling one: the value sits at 91.5% of the USD 29.13 billion North America figure in the Internet Data Center (IDC) Market report, which also counts managed hosting. Ceiling two: Equinix, Digital Realty and Iron Mountain together reported about USD 16.13 billion of worldwide 2025 revenue, and their North American share fits inside the estimated 41% top-five share. Floor: 11,800 MW at the lowest wholesale rent of USD 120 per kW-month still gives USD 17.0 billion. Full method notes are on the research methodology page.