Chicago Data Center Market Size (2024 - 2029)

The Chicago Data Center Market is projected to experience substantial growth over the forecast period, driven by the increasing demand for hyperscalers and edge data centers. This expansion is fueled by the rising data generation across various sectors such as IT, telecom, BFSI, healthcare, and government, alongside the growing adoption of big data and IoT technologies. The shift towards cloud-based solutions, prompted by technological advancements and consumer preferences, is further propelling the market. However, challenges such as data security concerns and the need for robust energy infrastructure pose significant hurdles to the market's growth trajectory.

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Market Size of Chicago Data Center Industry

Chicago Data Center Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2018 - 2022
CAGR (2024 - 2029) 9.00 %
Market Concentration Low

Major Players

Chicago Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Chicago Data Center Market Analysis

The Chicago Data Center Market size is estimated at 1.07 Thousand megawatt in 2024, and is expected to reach 1.65 Thousand megawatt by 2029, growing at a CAGR of 9% 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.
  • As businesses in Chicago 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.
  • The need for cloud-based solutions has grown nationwide due to rising technological adoption and consumer preference for the cloud, allowing access to data from remote locations. As more businesses understand the value of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure, the demand for cloud-based solutions and, as a result, the adoption of cloud-based data centers in the nation has increased.
  • However, one of the main barriers in the market under study is data security, which results from increased cyberattacks and natural catastrophes. A significant issue the nation faces due to rising adoption is the energy infrastructure required to deliver uninterrupted cloud and data center services.

Chicago 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 Chicago 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], by end user [cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce]) and non-utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.

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Chicago Data Center Market Size Summary

The Chicago Data Center Market is experiencing significant growth, driven by the increasing adoption of cloud applications, artificial intelligence, and big data. As businesses shift operations to the cloud, the demand for advanced data centers with robust computing capabilities, such as GPUs and AI accelerators, is on the rise. This trend is further fueled by the need for secure and reliable data storage solutions, as organizations seek to protect against cyber threats and data breaches. The market is characterized by the expansion of hyperscale and edge data centers, which cater to the growing need for data processing and storage. The development of new facilities, such as Oracle's Cloud Infrastructure region and Metro Edge's high-performance data center, underscores the ongoing investment in this sector.

The market landscape is fragmented, with key players employing strategies like mergers, acquisitions, and strategic partnerships to enhance their market presence. Companies such as Digital Realty Trust, DataBank, Equinix Inc., Cyxtera Technologies, Inc., and CyrusOne are actively expanding their operations in the Chicago area. The introduction of sustainable and innovative data center solutions, like the Aspen Mountain Hyperscale Data Center, highlights the industry's focus on efficiency and environmental responsibility. Despite challenges such as data security and energy infrastructure, the Chicago Data Center Market is poised for continued growth, offering substantial opportunities for businesses and investors.

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Chicago Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 & 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 By Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 By End User

          1. 1.3.1.2.1 Cloud & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End User

      2. 1.3.2 Non-Utilized

Chicago Data Center Market Size FAQs

The Chicago Data Center Market size is expected to reach 1.07 thousand megawatt in 2024 and grow at a CAGR of 9% to reach 1.65 thousand megawatt by 2029.

In 2024, the Chicago Data Center Market size is expected to reach 1.07 thousand megawatt.

Chicago Data Center Market Report Snapshots

Chicago Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)