The Growing Reach of American Data Centers: Power and Demand

The demand for data centers is rapidly growing, fueled by the increasing adoption of artificial intelligence (AI) technologies. Tech firms are projected to spend $1 trillion on AI in the next five years, with a significant portion allocated to data centers. However, this surge in demand is straining power grids in major markets, prompting data center developers to expand into new locations across the United States. Traditional data center hubs like Northern Virginia, Dallas, Phoenix, Silicon Valley, and Chicago are being joined by emerging markets such as New Albany, Ohio, and Reno, Nevada. The growth of AI is expected to further drive this expansion, as the power requirements for AI applications are double that of traditional CPUs. Developers are seeking areas with surplus electricity and reasonable utility costs to accommodate the anticipated wave of data center development catering to AI.