Stargate Project, Liquid Cooling & GPU Facilities Reshape U.S. Data Center Colocation Market 2031

CHICAGO - July 9, 2026 - PRLog -- Arizton's latest report highlights that the U.S data center colocation market is expected to attract nearly USD 462 billion investments during 2026–2031, reflecting sustained demand for hyperscale expansion, AI-ready infrastructure, and enterprise cloud capacity. Valued at USD 43.71 billion in 2025, the market is projected to reach USD 85.18 billion by 2031, growing at a CAGR of 11.76%. The South-Eastern U.S. is expected to attract approximately USD 127.84 billion, accounting for around 28% of total investments.

Major Developments Highlight Intensifying Competition in U.S. Colocation

• EdgeCore Digital Infrastructure's USD 17 billion investment in a 1.1 GW Virginia campus underscores the growing scale of hyperscale and AI infrastructure projects across the U.S. data center colocation market.  
• STACK Infrastructure and Silver Companies' USD 10 billion campus in Fredericksburg highlights continued capital concentration in Virginia, where demand for large-scale AI and cloud capacity remains strong.  
• Sabey Data Centers' planned USD 4 billion development in Indianapolis signals expanding investor interest in emerging colocation markets beyond established hyperscale hubs.  

High-Density Infrastructure Becomes the New Colocation Standard

The U.S. data center colocation market is entering a new infrastructure investment cycle as artificial intelligence increases demand for hyperscale AI capacity. While current AI investments have not yet matched the pace of hyperscale expansion, the capacity dedicated to AI workloads is expected to almost triple over the next five to six years.

Carbon-Neutral Infrastructure Moves to the Forefront of Colocation Investment

Sustainability is becoming a strategic investment priority in the U.S. data center colocation market as AI and cloud workloads continue to increase electricity demand. Beyond reducing carbon emissions, access to renewable energy is increasingly influencing capacity expansion, project approvals, and long-term hyperscale deployments. This shift is prompting colocation operators to secure long-term power purchase agreements (PPAs), invest in on-site solar and wind generation, and deploy battery energy storage systems to strengthen energy resilience and support AI-ready infrastructure.

Capital Concentrates in the U.S.'s Largest Colocation Hubs

Capital continues to concentrate in the U.S.'s largest colocation hubs, where available power, network connectivity, and hyperscale demand are supporting multi-billion-dollar investment pipelines. The South-Eastern U.S. is projected to attract more than USD 15.04 billion in 2025, while the South-Western U.S. follows closely with over USD 14.95 billion. Looking ahead, the South-East is expected to add around 13,628 MW of new power capacity through 2031, underlining its role in the next phase of hyperscale expansion.

To Know More, Click: https://www.arizton.com/market-reports/us-data-center-colocation-market