United States
US 54118723 | Procurement

Data Center Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
Data center services are used to process, store, network, manage, and distribute data. Data center services can also be referred to as colocation center services, and suppliers can be referred to as carriers. This report focuses exclusively on outsourced data center services for businesses, rather than consulting companies that advise businesses on how to create their own data storage and processing centers.

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What’s included in this market coverage

IBISWorld's research coverage on the Data Center Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Data Center Services market in the United States includes Colocation Services, Rack Space, Tower Space, Data Processing and Data Storage. Standard coding in this coverage includes ISIC-6311-Data processing, hosting and related activities, NACE-63.11-Data Processing, Hosting And Related Activities, NAICS-518210-Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services and UNSPSC-81112003-Data center services.

What common market terminology is included?

Common market terminology included in the Data Center Services procurement coverage includes U (Used in this market to describe a unit of rack space 1.75 inches in height.), Uptime (The time when a machine (e.g., a computer or server) is operating.), Hosting (Storing data and information in a central location so it is accessible from different locations.), Server (A hardware and software system that responds to commands across a network to provide network service.), Power Usage Effectiveness (PUE) (A measure of energy efficiency, with 1.0 as the ideal PUE score; 100.0% of the power brought to the data center is used for computer processing.), Telecommunications Industry Association (TIA) (An accredited agency that determines consensus-based industry standards in the information and communications technologies products and services markets.) and Colocation Center (Another term for data center that refers to the interconnected nature of the hardware and data within a business in a separate location. It may also be spelled as co-location or collocation.).

What companies are included as top suppliers?

The top companies covered in the Data Center Services procurement report as suppliers are Zayo Group Holdings, Inc., Iron Mountain Inc., American Tower Corporation, Cyxtera Technologies, Inc. and At&T Inc..

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Data Center Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per rack space, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Data Center Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Data Center Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Data Center Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Data Center Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Data Center Services?

The 2026 benchmark market price for Data Center Services is $135 per rack space. Prices have increased at a CAGR of 2.06 from 2023-26.

Who are the top vendors in the Data Center Services market?

The top vendors in the Data Center Services market include Zayo Group Holdings, Inc., Iron Mountain Inc., American Tower Corporation, Cyxtera Technologies, Inc. and At&T Inc..

What industries supply the Data Center Services market?

The top industries supplying the Data Center Services market are Commercial Real Estate in the US, Law Firms in the US, Computer Manufacturing in the US, Semiconductor & Circuit Manufacturing in the US, Electric Power Transmission in the US, Hydroelectric Power in the US, Electrical Equipment Wholesaling in the US and Wire & Cable Manufacturing in the US.

What is the supply chain risk for Data Center Services?

Low supplier concentration empowers buyers with strong negotiation leverage and flexible sourcing options. The market's low market share concentration creates a competitive landscape with many small suppliers. Buyers can leverage this fragmentation to enhance competition during bidding, negotiate favorable contract terms, and regularly benchmark pricing. This flexibility not only drives down procurement costs but also allows buyers to quickly adjust sourcing strategies or switch vendors as needs evolve, minimizing dependence on any single supplier.

What factors affect the price of Data Center Services?

Features such as storage capacity, redundancy options, network bandwidth, and security measures directly affect the pricing of data center services. For example, higher storage capacities and advanced security features like multi-factor authentication and encryption typically lead to increased costs, while basic services with limited redundancy may offer lower pricing tiers.

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