The area that will become the global capital of data centers by 2030
Northern Virginia, currently the world's largest data center market, faces competition from Texas and other states as tech companies seek better resources and incentives.
Northern Virginia has been the epicenter of the data center industry for over 15 years, hosting the largest market of data centers globally. However, recent trends indicate a potential shift as major tech corporations expand their operations across the U.S. in search of available energy, cheaper land, and improved tax incentive packages. Areas like West Texas, Tennessee, Wisconsin, and Ohio are emerging as key markets, with Texas predicted to supplant Virginia as the world's leading data center market by 2030 according to a new study by Jones Lang LaSalle.
This potential transition illustrates how rapidly the expansion of data centers is reshaping the landscape of digital infrastructure in America. The competition among these states underscores the increasing demand for data services driven by companies like Amazon, Microsoft, Google, and Meta, who are planning to invest over $600 billion in AI infrastructure by 2026. This investment signifies the critical role of data centers in supporting the burgeoning sectors of artificial intelligence and cloud computing, highlighting an industry on the brink of extensive transformation.
As the shift occurs, it raises implications for local economies and infrastructure requirements while also pointing to a future where tech companies will be more geographically dispersed. The rise of new data center hubs could alter the dynamics of tech industry investments and development, impacting job creation and regional competitiveness in technology advancements. This forecast necessitates an adaptation strategy from regions currently leading in data center markets to remain relevant in this increasing competition for digital infrastructure.