Southern California Data Center Market in 2026: Trends for Local Businesses
Southern California is one of the fastest-growing data center markets in the United States. Driven by entertainment, tech, healthcare, and defense sectors, the region is attracting massive investment in colocation and hyperscale facilities.
## Market Overview
Los Angeles metro
has become the third-largest data center market in the US: - 600+ MW of operational data center capacity - Major providers: Equinix, CoreSite, Digital Realty, DataBank, Cyxtera - Subsea cable landing points connecting to Asia-Pacific markets - Content delivery hubs for streaming and entertainment companies
Orange County
is emerging as a secondary market: - Lower power costs and real estate compared to LA - Growing colocation demand from healthcare, financial services, and manufacturing - Edge computing deployments for latency-sensitive applications
## What This Means for Local Businesses
### Colocation vs. On-Premise For businesses outgrowing their on-site server closet: - **Server closet** (1-2 racks): Managed on-site with UPS and cooling - **Colocation** (1-10 cabinets): Rent space in a professional data center with redundant power, cooling, and connectivity - **Cloud-first** (no hardware): Migrate everything to AWS, Azure, or Google Cloud
### Hybrid Approach Most businesses benefit from a mix: - Cloud for email, collaboration, and SaaS applications - Colocation for legacy applications and data sovereignty requirements - On-premise for low-latency needs (manufacturing, healthcare imaging)
### Connectivity Data center selection should prioritize: - Proximity (latency to your office and employee locations) - Carrier diversity (multiple fiber providers in the facility) - Cross-connect availability (direct connections to cloud on-ramps) - Compliance certifications (SOC 2, HIPAA, PCI for regulated industries)
Summit DNC helps businesses evaluate colocation options, plan migrations from on-premise to data center, and design the network connectivity between office and colo.
Related Services
Related Comparisons
Industries We Serve
Related Articles
UPS Sizing for Data Centers and Server Rooms: A Practical Guide
How to properly size an uninterruptible power supply for your data center — load calculations, runtime planning, and redundancy.
InfrastructureBest UPS Systems for Server Rooms in 2026
A properly sized UPS protects your servers from power outages and surges. We compare rack-mount vs. tower, online vs. line-interactive, and our top picks for 2026.
InfrastructureServer Room vs. Data Center: Which Does Your Business Need?
Should you build a server room in your office or colocate in a data center? Compare costs, reliability, compliance, and operational requirements.
Need Help With Your Infrastructure Project?
Summit DNC designs and deploys the systems covered in this article. Contact us for a free consultation.