Los Angeles Data Center Market Size (2024 - 2029)

The Los Angeles Data Center Market is experiencing growth driven by the city's robust media and entertainment sectors, which enhance the demand for data center services. The city's extensive broadband access and significant economic contribution from the digital economy further support this expansion. However, challenges such as rising real estate prices, land scarcity, and zoning constraints complicate the market landscape for data center operators. The increasing adoption of cloud computing and artificial intelligence is fueling demand, despite the complexities introduced by the pandemic and evolving work patterns.

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Market Size of Los Angeles Data Center Industry

Los Angeles Data Center Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 4.50 %
Market Concentration Low

Major Players

Los Angeles Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Los Angeles Data Center Market Analysis

The Los Angeles Data Center Market size is estimated at 165.68 megawatt in 2024, and is expected to reach 206.47 megawatt by 2029, growing at a CAGR of 4.5% during the forecast period (2024-2029).

A data center is a specific area inside a structure or a collection of designs that includes computer systems and related equipment, such as networking and storage systems.

  • Los Angeles, home to Hollywood, the world's most famous entertainment industry center, has thriving media and entertainment hubs that contribute significantly to the density of, and ubiquitous connectivity to, the city's data centers. The high pace of movie production each year has been demonstrated to increase data center leasing activity rates in and around the area.
  • Los Angeles is one of the most significant cities in the United States, with a population of about four million. Over 82% of this population has broadband internet access, contributing to the vast connection Los Angeles and its data centers enjoy. Los Angeles has a GDP of over US$940 billion, and its data center business is growing to a significant contribution from the digital economy.
  • As the rise of AI takes the stage, hyperscale, and edge fuel data center demand. The broad adoption of cloud computing and artificial intelligence (AI) drives exponential growth for the data center business.
  • Real estate prices in Los Angeles have surged due to issues such as a scarcity of adequate land, increasing demand from other businesses, and zoning constraints. As a result, land and construction costs have risen significantly, making it harder for data center operators to obtain a satisfactory return on investment.
  • The epidemic also increased network and internet traffic due to the work-from-home lifestyle, more internet-based activities, and social media usage. While timelines and schedules are shrinking, data center projects are growing.

Los Angeles 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 Los Angeles Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), Tier Type (Tier 1&2, Tier 3, Tier 4), Absorption (Utilized (Colocation Type (Retail, Wholesale, Hyperscale), 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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Los Angeles Data Center Market Size Summary

The Los Angeles Data Center Market is experiencing significant growth, driven by the city's robust media and entertainment sectors, which enhance the demand for data center services. The city's extensive broadband connectivity and substantial GDP contribute to its status as a key player in the data center industry. The rise of artificial intelligence and cloud computing is further propelling the market, as businesses increasingly require advanced data storage and processing capabilities. However, challenges such as high real estate prices and zoning constraints pose obstacles for data center operators seeking to maximize their return on investment. The COVID-19 pandemic has also accelerated the demand for data centers, as increased internet traffic and remote work have underscored the need for reliable data infrastructure.

The market is characterized by the growing adoption of hyperscale data centers, which are essential for handling the vast amounts of data generated by modern enterprises. These facilities, often operated by major cloud service providers, are expanding rapidly to meet the rising demand for digital IT infrastructure. The Los Angeles market is fragmented, with key players engaging in mergers, acquisitions, and strategic partnerships to enhance their market presence. Notable developments include the construction of new data centers and innovative cooling solutions, such as floating data centers. These trends highlight the significant opportunities for businesses and investors in the Los Angeles data center market, particularly in regions with high demand for cloud-based services.

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Los Angeles 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

Los Angeles Data Center Market Size FAQs

The Los Angeles Data Center Market size is expected to reach 165.68 megawatt in 2024 and grow at a CAGR of 4.5% to reach 206.47 megawatt by 2029.

In 2024, the Los Angeles Data Center Market size is expected to reach 165.68 megawatt.

Los Angeles Data Center Market Report Snapshots

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