AI boom reshaping the geography of data center development

Power availability, land costs and slower‑than‑expected leasing are influencing where new facilities are being built
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AI boom reshaping the geography of data center development

Power availability, land costs and slower‑than‑expected leasing are influencing where new facilities are being built
PRO
Data center growth is expanding beyond traditional hubs as AI demand rises, driving development in new U.S. markets despite emerging risks.

Data center growth has boomed in recent years as rapidly advancing branches of artificial intelligence, including generative AI and agentic AI, require more physical data center space than traditional AI or even the long-established uses of data centers to store and transmit information.
Thus, data center development has expanded beyond the stalwart markets. Northern Virginia, known as “Data Center Alley,” emerged after World War II to serve the massive expansion of federal infrastructure, including the government’s requirements for secure information facilities, giving the region a first-mover advantage that has made it the global leader in data center power availability and usage. 
Data centers have long existed in or near business c...

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