NAICS 518210 Quarterly Industry Report
Data Processing, Hosting, and Related Services
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 518210Sector: Information (51)Updated: Q1 2026
About This Report
Fair Market Value compiles this NAICS 518210 industry report using data from the U.S. Census Bureau[7], the Bureau of Labor Statistics[8], and the Small Business Administration[9]. Our research team analyzes recurring revenue metrics, power usage effectiveness ratios, and capacity use rates to build valuation benchmarks for data center and hosting businesses. This report on NAICS 518210 is updated quarterly to reflect cloud adoption trends and data center construction activity.
Industry Snapshot
Key metrics for the data processing, hosting, and related services industry.
Industry Definition & Overview
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (NAICS 518210) encompasses establishments that provide computing infrastructure, data processing services, web hosting, and related support to client organizations. These firms operate data centers housing server hardware, storage systems, and networking equipment that deliver cloud computing, colocation, managed hosting, application hosting, and data processing services on a subscription or usage-based pricing model.
Cloud computing dominates the revenue mix for this industry. Infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings allow businesses to rent server capacity, storage, and development tools without purchasing physical hardware. Colocation providers lease rack space, power, and cooling to enterprises that own their own servers but want professionally managed facility environments. Transaction processing firms handle payment card authorization, payroll computation, and other high-volume data operations for financial institutions and large employers.
The Census Bureau[5] tracks revenue for this industry within the broader information sector. Data center construction continues expanding in Virginia's Loudoun County, the Dallas-Fort Worth corridor, Phoenix, and the Pacific Northwest, driven by cloud demand and artificial intelligence workloads. The Bureau of Labor Statistics[6] reports employment data for systems administrators, database engineers, and network architects who staff these operations. Energy consumption is a defining operational cost, with power and cooling representing 40 percent or more of facility expenses at many data centers.
What's Included in This Industry
- Cloud infrastructure-as-a-service (IaaS) provisioning
- Platform-as-a-service (PaaS) development environments
- Colocation and data center rack space leasing
- Managed web hosting and application hosting
- Data processing and transaction computing services
- Content delivery network (CDN) operations
- Disaster recovery and backup-as-a-service
- Payment card authorization and payroll processing
- Database management and storage-as-a-service
- Managed security and firewall services for hosted clients
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Information | 51 |
| Subsector | Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services | 518 |
| Industry Group | Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services | 5182 |
| NAICS Industry | Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services | 51821 |
| National Industry | Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services | 518210 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 541511 | Custom Computer Programming Services | Custom programming firms build the applications and microservices that run on infrastructure provided by hosting and cloud computing operators |
| 541512 | Computer Systems Design Services | Computer systems design firms architect and configure client environments within data centers, bridging infrastructure and application deployment needs |
| 517111 | Wired Telecommunications Carriers | Wired telecom carriers supply the fiber optic connectivity that links data centers to enterprise networks and internet exchange points |
| 334111 | Electronic Computer Manufacturing | Computer manufacturers produce the servers, storage arrays, and networking gear that data center operators purchase for capacity expansion |
| 513210 | Software Publishers | Software publishers develop the operating systems, virtualization platforms, and management tools that run on hosted infrastructure |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.4% | 2,532 |
| 2 | Texas | 7.5% | 1,322 |
| 3 | Florida | 6.6% | 1,160 |
| 4 | New York | 5.6% | 977 |
| 5 | Pennsylvania | 5.2% | 912 |
| 6 | Virginia | 3.4% | 604 |
| 7 | Illinois | 3.4% | 598 |
| 8 | Ohio | 3.4% | 587 |
| 9 | New Jersey | 3.2% | 565 |
| 10 | Colorado | 3.1% | 547 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,160
Total SBA Loans
$588.9M
Total Loan Volume
$508K
Average Loan Size
10 yrs
Average Loan Term
10.73%
Average Interest Rate
12,568
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA size standard[10] for NAICS 518210 is $40 million in average annual receipts, classifying firms below this revenue threshold as small businesses for federal programs. Firms can access SBA 7(a) loans[11] for server hardware, software licensing, and working capital, while SBA 504 loans[12] support data center facility construction and equipment installation. Thousands of small hosting and colocation firms operate alongside a handful of hyperscale cloud providers.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 248 | $179.7M | $725K |
| 2 | Live Oak Banking Company | 64 | $72.4M | $1.1M |
| 3 | Readycap Lending, LLC | 64 | $50.1M | $784K |
| 4 | City National Bank of Florida | 8 | $40.0M | $5.0M |
| 5 | The Huntington National Bank | 96 | $38.4M | $400K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 518210?
NAICS 518210 covers establishments providing computing infrastructure, cloud services, web hosting, colocation, and data processing. This includes cloud IaaS and PaaS providers, colocation facility operators, managed hosting companies, CDN operators, and transaction processing firms.
How is NAICS 518210 different from 541511?
NAICS 518210 covers firms providing infrastructure and hosting environments for applications, while 541511 covers firms writing custom software for clients. Hosting providers deliver the compute platform; programmers build the applications that run on it, per Census Bureau classifications[13].
What is the SBA size standard for data hosting?
The SBA sets the size standard for NAICS 518210 at $40 million in average annual receipts over the preceding five fiscal years. Firms below this threshold qualify as small businesses for federal contracting and lending, per the SBA size standards table[10].
What NAICS codes are related to data hosting?
Related codes include 541511 (custom programming), 541512 (systems design), 517111 (wired telecom), 334111 (computer manufacturing), 513210 (software publishing), and 238210 (electrical contractors). Each connects through infrastructure, development, or facility construction.
What industries are closely related to data hosting?
Closely related industries include custom programming (541511), systems integration (541512), wired telecom (517111), server manufacturing (334111), and electrical construction (238210). Each supports or depends on data center infrastructure.
What activities are included in data hosting?
Activities include cloud IaaS and PaaS delivery, colocation leasing, managed hosting, CDN operations, disaster recovery services, payment processing, payroll computation, and database management. The Census Bureau[5] tracks industry revenue.
Can data hosting companies get SBA loans?
Where are data hosting companies concentrated?
Northern Virginia's Loudoun County hosts the largest data center cluster in the world. Other major hubs include Dallas-Fort Worth, Phoenix, Chicago, and the Pacific Northwest near hydroelectric power sources, per Census Bureau County Business Patterns[14].
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]Small Business Administration sba.gov
- [10]SBA size standard sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]SBA 504 loans sba.gov
- [13]Census Bureau classifications census.gov
- [14]Census Bureau County Business Patterns census.gov
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