The data center market is growing faster than ever before. The market is expected to grow at a compound annual growth rate of 4.8% during the period of 2021–2026. Providers need to be able to expand their reach and solutions to their customers to accommodate the growth. In this blog, we will discuss the hottest locations for data centers in the United States.  


Virginia has long been a hotspot for data centers due to the low cost of electricity. Tax cuts and incentives are also offered to data center operators in this region. Let’s not forget northern Virginia’s proximity to the nation’s capital, making it one of the most desirable locations.


Dallas is a central communications hub in the southern US (Texas) and is home to a large volume of telecommunications companies. Like Virginia, many companies are moving their offices to Texas due to desirable tax incentives. Companies like Hewlett Packard Enterprise, Oracle and Digital Realty are all moving their headquarters to Dallas. This will ensure colocation needs will continue to increase to meet demand over the years.


Arizona is a great place to colocate when it comes to disaster recovery.  Based on its location, the state is at low risk for natural disasters. Arizona is also a great location because of its easy access to renewable energy, bringing down the cost of renewable energy.  These benefits have led organizations to look outside of areas, such as California, for their colocation needs, with Phoenix being one of the top destinations.

What’s Ahead?

Data center providers are looking for ways to improve energy efficiency in their facilities. Customer demand for renewable energy is also on the rise.  As research shows how much power the data center industry uses up each year, organizations have started embracing renewable energy solutions. As renewable energy becomes cheaper and more accessible within the industry, the new data center market will have less overhead, leading to another boom in the market.

Are you thinking of colocating in the northeast? New Jersey data centers, such as 165 Halsey Street, offer close proximity to Manhattan, but with the added convenience of not being directly in the city. New Jersey data center tenants experience improved accessibility, ample parking opportunities and less chance of a natural disaster occurrence. Learn more about 165 Halsey Street and colocating in New Jersey here