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NAICS 518210
IT Services

Data Processing, Hosting, and Related Services

Size Standard: $40 million

Overview

NAICS code 518210 covers Data Processing, Hosting, and Related Services, representing critical infrastructure services for government IT operations. This industry includes establishments primarily engaged in providing infrastructure for hosting or data processing services, including web hosting, streaming services, application hosting, and data processing.

The federal government's massive data needs drive substantial investment in data processing and hosting services. Agencies require support for cloud hosting, data center operations, application hosting, data warehousing, and specialized data processing. The shift to cloud computing has particularly accelerated opportunities under this NAICS code.

Contractors under NAICS 518210 provide services including cloud hosting (IaaS, PaaS, SaaS), data center services, web hosting, application hosting, data warehousing, and data processing services. FedRAMP authorization is increasingly required for cloud services sold to federal agencies.

The $40 million size standard reflects the capital-intensive nature of hosting and data center operations. Smaller providers often focus on specialized niches or work as subcontractors to larger cloud providers. FedRAMP authorization has become a key differentiator in this market.

Top Agencies Buying Under NAICS 518210
  • General Services Administration (GSA)
  • Department of Defense (DoD)
  • Department of Homeland Security (DHS)
  • Centers for Medicare & Medicaid Services (CMS)
  • Internal Revenue Service (IRS)
Types of Contract Opportunities
  • Cloud Hosting Services
  • Data Center Operations
  • Web and Application Hosting
  • Data Processing Services
  • Data Warehousing Solutions
Helpful Certifications

These certifications can help you compete for set-aside contracts under NAICS 518210:

FedRAMP
8(a)
SDVOSB
HUBZone
Frequently Asked Questions

What services are covered under NAICS code 518210?

NAICS 518210 covers data processing and hosting including cloud services (IaaS, PaaS, SaaS), data center operations, web hosting, application hosting, data warehousing, and data processing services.

What is the size standard for NAICS 518210?

The SBA size standard for NAICS 518210 is $40 million in average annual receipts, higher than many IT services codes due to the capital-intensive nature of hosting operations.

Is FedRAMP required for NAICS 518210 contracts?

For cloud services sold to federal agencies, FedRAMP authorization is increasingly required. This can be at Low, Moderate, or High impact levels depending on data sensitivity. Non-cloud hosting may not require FedRAMP.

How can small businesses compete in NAICS 518210?

Small businesses compete through specialized niches, reselling authorized cloud services, providing managed services on top of major clouds, or focusing on specific agency requirements where FedRAMP isn't required.

Which cloud providers dominate NAICS 518210 government contracts?

AWS GovCloud, Microsoft Azure Government, and Google Cloud Platform have significant market share due to FedRAMP authorizations. Smaller providers compete in specialized niches or as value-added resellers.

Size Standard
$40 million

Businesses below this threshold in average annual receipts qualify as small businesses for set-aside contracts.

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