Houston Data Center Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 92.72 megawatt |
| Market Volume (2029) | 116.66 megawatt |
| CAGR (2024 - 2029) | 4.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Houston Data Center Market Analysis
The Houston Data Center Market size is estimated at 92.72 megawatt in 2024, and is expected to reach 116.66 megawatt by 2029, growing at a CAGR of 4.70% during the forecast period (2024-2029).
- A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
- Hyperscalers and edge data centers are the parts of the industry that are expanding quickly. While edge enables diversification and reduces latency, hyperscalers meet the rising demand. Artificial intelligence (AI) development will boost demand by requiring more data and increasing computing efficiency.
- The development of cloud computing has benefited the DFW market as well. Cloud service providers like IBM Softlayer and Rackspace have partnered with larger colocation companies to house their infrastructure. For instance, cloud providers account for a sizable amount of the 86 MW at Digital Realty's 68-acre Richardson campus, which has a total area of 68 acres. Hyperscale cloud providers are also aggressively building their data centers and renting regional space. This trend is projected to continue as data center users continue to adopt cloud computing, and cloud providers depend on larger colocation providers for infrastructure support.
- As businesses in Houston experience significant data generation across industries like IT and telecom, BFSI, healthcare, and government and defense, big data and IoT technology will increase investments in the data center industry. In the southern part of Houston County, the market saw a land rush for all asset categories, including data centers. Rising capital costs will throw off this trend, which may impede speculative growth in the area.
Houston Data Center Market Trends
High Adoption Of Hyperscale Data Center
- Despite slowing leasing activity, the market remains appealing for data center operators, with 78.4 percent of new construction preleased and a positive outlook for the healthcare and energy industries. Power tariffs in the region are also among the lowest in North America. The Houston market is poised to expand in the following years as data center providers shift from high-vacancy, high-cost main markets to cheaper secondary and tertiary regions with more land and power availability.
- As the demand for digital IT infrastructure grows, hyperscalers and edge data centers are expected to be the fastest-growing segments of the data center market. Indeed, the hyperscale market is predicted to increase by 20% between 2021 and 2026 as more major IT businesses seek to address the rising demand for data processing and storage.
- With 314 new hyperscale sites under construction globally now, the number is likely to exceed 1,000 by the end of 2024, up from roughly 500 locations just five years ago. According to Uptime Institute, the United States has 53% of hyperscale capacity.
- With hyperscale demand at an all-time high, we anticipate an increase in partial-interest exchanges and forward sales of new builds. Furthermore, rising interest rates will likely boost sale-leaseback transactions for businesses looking to raise capital.
Increased Migration to Cloud & IT based Business Operations
- The growing adoption of cloud applications, artificial intelligence (AI), and big data is driving the demand for the data center market. As more businesses and organizations shift their operations to the cloud, they require larger and more advanced data centers to support their needs.
- Cloud applications have become popular in recent years because they enable businesses to access software and services via the Internet rather than installing and maintaining them on their hardware. This has increased demand for cloud-based data storage and processing capabilities, which big data centers usually provide.
- The data center model has changed thanks to cloud computing. Traditional data centers, which run on hardware and require a lot of room, are no longer practical. As a result of the commercialization of storage, computing, and network resources by cloud providers, hyperscale cloud-based data centers have emerged. These public cloud service providers directly own and manage these data centers.
- Additionally, the growing data privacy and security requirement is fuelling demand for data centers. Because of the increase in cyber risks and data breaches, businesses and organizations are looking for secure and dependable data storage and processing solutions, which advanced data centers can only offer. The need for data centers will likely increase as businesses and organizations increasingly rely on these technologies to support their operations. This is a significant potential for companies and investors interested in entering the data center market.
Houston Data Center Industry Overview
The Houston Data Center Market is Semi-consolidated. in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include Digital Realty Trust, Inc., DataBank, Equinix, Inc., Netrality Data Centers, and Cogent.
In May 2023, Netrality Data Centers announced that it is expanding capacity at its Houston data center at 1301 Fannin Street. The company has shared that it will add two new data center halls spanning 17,000 square feet and offering over 2.5 megawatts of critical capacity.
In January 2022, DataBank will pay $670 million to CyrusOne for four Houston-area data centers. The four Houston facilities will bring more than 300,000 square feet of raised-floor data center capacity and 42.5 MW of essential IT load, and a roster of blue-chip customers from the region's rapidly increasing healthcare, financial, energy, media, and software sectors. DataBank's total portfolio will now include more than 65 facilities with a 2.0 million square feet capacity of raised-floor data center space.
Houston Data Center Market Leaders
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Digital Realty Trust, Inc.
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DataBank
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Equinix Inc.
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Cogent
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Netrality Data Centers
*Disclaimer: Major Players sorted in no particular order
Houston Data Center Market News
- May 2024 - Two multinational corporations have announced a new collaboration to create energy-efficient and sustainable solutions for data centers as the market experiences significant growth.聽ExxonMobil and Intel are working to design, test, research and develop new liquid cooling technologies to optimize data center performance and help customers meet their sustainability goals. Liquid cooling solutions serve as an alternative to traditional air-cooling methods in data centers.聽
- May 2023 - Netrality Data Centers, the biggest privately-owned company of essential interconnection facilities in the U.S., revealed the growth of its Houston data center located at 1301 Fannin Street. The new expansion includes two additional data halls covering 17,000 square feet and offering more than 2.5 megawatts of critical capacity.
Houston Data Center Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 By DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 By Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 By Absorption
6.3.1 Utilized
6.3.1.1 By Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 By End User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Digital Realty Trust, Inc.
7.1.2 DataBank
7.1.3 Equinix Inc.
7.1.4 Netrality Data Centers
7.1.5 Cogent
7.1.6 Stream Data Centers
7.1.7 EdgeConneX, Inc.
7.2 Market share analysis (In terms of MW)
7.3 List of Companies
Houston Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Houston data center market is segmented by DC size (small, medium, large, massive, mega), by tier type (tier 1&2, tier 3, tier 4), by absorption (utilized [colocation type [retail, wholesale, hyperscale], end user [cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce]], Non-Utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
Houston Data Center Market Research Faqs
How big is the Houston Data Center Market?
The Houston Data Center Market size is expected to reach 92.72 megawatt in 2024 and grow at a CAGR of 4.70% to reach 116.66 megawatt by 2029.
What is the current Houston Data Center Market size?
In 2024, the Houston Data Center Market size is expected to reach 92.72 megawatt.
Who are the key players in Houston Data Center Market?
Digital Realty Trust, Inc., DataBank, Equinix Inc., Cogent and Netrality Data Centers are the major companies operating in the Houston Data Center Market.
What years does this Houston Data Center Market cover, and what was the market size in 2023?
In 2023, the Houston Data Center Market size was estimated at 88.36 megawatt. The report covers the Houston Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Houston Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Houston Data Center Industry Report
Statistics for the 2024 Houston Data Center market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Houston Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
