The United States data centre market is a dynamic and rapidly expanding sector, crucial for global digital infrastructure. Analysis of the market reveals significant concentrations of operational and planned facilities across various states, driven by factors such as power availability, space for expansion, and proximity to customer bases. This article provides a factual overview of the current state and growth trends within the US data centre landscape, based exclusively on the provided source material.
State-by-State Data Centre Inventory
The distribution of data centres across the United States is highly uneven, with certain states emerging as dominant hubs. Virginia stands out as the leader in operational centres, with 316 active facilities. It also has a substantial pipeline, with 136 centres under construction and 512 announced, indicating strong ongoing investment. The state's total estimated power capacity is a massive 32,946 MW.
Texas follows with 208 operational centres, 123 under construction, and 515 announced, reflecting its growing importance in the market. Its total estimated power capacity is 4,826 MW. California, while having fewer operational centres (166), has a significant number announced (38) and under construction (6), with an estimated power capacity of 1,734 MW.
Other notable states include Ohio (100 operational, 40 under construction, 90 announced, 5,231 MW capacity), Oregon (96 operational, 13 under construction, 13 announced, 3,824 MW capacity), and Arizona (82 operational, 30 under construction, 126 announced, 2,570 MW capacity). Illinois is a major player in terms of space and power, with 77 operational centres, 18 under construction, and 135 announced, offering a total of 34,299,189 sqft and 9,488 MW of estimated power.
The data also highlights emerging hubs. Georgia has 64 operational centres but a large number announced (289) and under construction (48), with a total space of 14,294,845 sqft and 2,199 MW of power. Iowa has 56 operational centres, with 17 under construction and 37 announced. Florida, New Jersey, and New York have smaller but established markets.
For states with minimal data, the numbers are low. For example, West Virginia has 4 operational centres and 1 announced, with no under-construction projects. Maine has 4 operational centres and 2 announced. Rhode Island has 3 operational centres. North Dakota has 2 operational, 2 under construction, and 10 announced. Hawaii and South Dakota each have 2 operational centres. Vermont has 1 operational centre.
A detailed table summarising this inventory is presented below for clarity.
| State | Operational | Under Construction | Announced | Total Space (sqft) | Estimated Power Capacity (MW) |
|---|---|---|---|---|---|
| Virginia | 316 | 136 | 512 | 154,305,021 | 32,946 |
| Texas | 208 | 123 | 515 | 28,226,742 | 4,826 |
| California | 166 | 6 | 38 | 15,892,002 | 1,734 |
| Ohio | 100 | 40 | 90 | 16,711,450 | 5,231 |
| Oregon | 96 | 13 | 13 | 19,493,975 | 3,824 |
| Arizona | 82 | 30 | 126 | 15,977,879 | 2,570 |
| Illinois | 77 | 18 | 135 | 34,299,189 | 9,488 |
| Washington | 70 | 4 | 11 | 8,959,870 | 1,223 |
| Georgia | 64 | 48 | 289 | 14,294,845 | 2,199 |
| Iowa | 56 | 17 | 37 | 13,009,582 | 2,168 |
| Florida | 53 | 2 | 15 | 2,867,220 | 188 |
| New Jersey | 49 | 2 | 6 | 6,938,892 | 603 |
| New York | 47 | 3 | 4 | 2,743,408 | 297 |
| North Carolina | 41 | 7 | 42 | 1,500,000 | 396 |
| Pennsylvania | 37 | 10 | 190 | 40,975,183 | 13,565 |
| Colorado | 31 | 6 | 9 | 0 | 630 |
| Tennessee | 31 | 2 | 3 | 4,002,782 | 862 |
| Michigan | 30 | 1 | 14 | 2,519,368 | 1,627 |
| Indiana | 30 | 19 | 99 | 10,821,769 | 4,388 |
| Utah | 29 | 10 | 105 | 903,800 | 1,313 |
| Minnesota | 28 | 4 | 39 | 1,800,000 | 229 |
| Nevada | 27 | 24 | 71 | 6,363,543 | 1,146 |
| Missouri | 26 | 6 | 40 | 7,162,500 | 2,420 |
| Nebraska | 26 | 4 | 9 | 2,302,500 | 768 |
| Massachusetts | 23 | 0 | 0 | 1,785,975 | 164 |
| Oklahoma | 22 | 5 | 17 | 2,961,879 | 541 |
| South Carolina | 19 | 8 | 11 | 2,535,150 | 609 |
| Alabama | 16 | 6 | 33 | 7,566,000 | 1,849 |
| Wisconsin | 15 | 12 | 37 | 5,708,000 | 2,015 |
| New Mexico | 12 | 4 | 53 | 0 | 0 |
| Montana | 4 | 0 | 1 | 0 | 0 |
| West Virginia | 4 | 0 | 1 | 0 | 0 |
| Maine | 4 | 0 | 2 | 0 | 60 |
| Rhode Island | 3 | 0 | 0 | 32,500 | 2 |
| North Dakota | 2 | 2 | 10 | 342,000 | 39 |
| Hawaii | 2 | 0 | 0 | 73,350 | 6 |
| South Dakota | 2 | 0 | 2 | 42,000 | 4 |
| Vermont | 1 | 0 | 0 | 0 | 0 |
Market Analysis and Growth Drivers
The US data centre market is characterised by rapid expansion, particularly in established hubs like Virginia, California, and Texas. The data shows a significant number of announced and under-construction projects, signalling continued investment and growth. For instance, Virginia has over 600 projects in the pipeline (announced and under construction combined), while Texas has over 600. This points to a robust future for these regions.
Key considerations for data centre location and operation are highlighted in the source material. Access to reliable power sources is paramount, as data centres require significant electricity to operate and ensure uninterrupted service. Businesses must ensure locations have dependable power grids or alternative sources like backup generators.
Ample space for expansion is another crucial factor. As businesses grow, they need more space for data storage. The chosen location must have enough room for current needs and potential future expansion, allowing growth without the need to relocate the data centre.
Proximity to target customers is also vital. Locating data centres close to the customer base minimises latency and ensures fast, reliable data transmission. This enhances overall performance and delivers a seamless user experience.
The telecommunications sector in the US has adapted well to increased demand, with strong growth in mobile and broadband subscribers since 2020. The Federal government's investment in broadband infrastructure, notably the Infrastructure Investment and Jobs Act of November 2021, which provided $65 billion for broadband programs, further supports the digital ecosystem that data centres serve. This investment aims to deliver broadband to unserved areas, provide fibre-based broadband upgrades, and subsidise services for low-income households.
Strategic Partnerships and Development
The market is also shaped by strategic partnerships and new developments. For example, data centre developer Vantage Data Centers has signed a strategic partnership. Polish renewable energy firm R.Power has signed a virtual Power Purchase Agreement (vPPA) with a US entity. Technologies New Energy (TNE) has partnered with Data District to support development.
Plans for new data centre hubs are being announced. Avaio Digital Partners announced plans for a new hub near a specific location. A data centre could be part of a housing development. Texas-based Hive Digital Technologies is bringing its Buzz Cloud platform to a new market.
Investment and infrastructure development are active. The New Jersey Senate advanced a bill creating new tariff classes. Investment bank Macquire Group and startup Polarise have formed a strategic partnership. Norwegian data centre firm Skygard, owned by Telenor and an energy company, is also active.
Geographic and Environmental Context
The United States is located in North America, bordering both the North Atlantic and North Pacific Oceans, between Canada and Mexico. The country faces various natural hazards, including tsunamis, volcanoes, and earthquake activity around the Pacific Basin; hurricanes along the Atlantic and Gulf of Mexico coasts; tornadoes in the midwest and southeast; mud slides in California; forest fires in the west; flooding; and permafrost in northern Alaska, which is a major impediment to development. These factors can influence data centre site selection and operational risk assessments.
Conclusion
The US data centre market is a complex and growing industry, with Virginia, Texas, and California leading in operational facilities and future development. Growth is driven by the need for reliable power, expansion space, and proximity to customers. Strategic partnerships and government investment in broadband infrastructure further fuel this expansion. While older data centres remain important, the focus is on new construction and expansion to meet increasing digital demands. The distribution of centres across various states reflects a strategic approach to balancing cost, risk, and performance.
Sources
- US data center Inventory by State
- US data center developer Vantage Data Centers has signed a strategic partnership with US...
- One of the key considerations is access to reliable power sources. Data centers require a significant amount of electricity to operate and ensure uninterrupted service. Therefore, businesses need to ensure that the location they choose has access to a dependable power grid or alternative power sources, such as backup generators. Another crucial factor is ample space for expansion. When businesses get bigger, they need more space to store their data. They should pick a place that has enough room now and can be made bigger if it needs to. That way, the business can grow without having to move its data center. Additionally, proximity to target customers is also vital. Businesses want their data centers to be within close reach of their customer base to minimize latency and ensure fast and reliable data transmission. By selecting a location that is geographically near their target audience, businesses can enhance their overall performance and deliver a seamless user experience. Choosing the right location can ensure optimal performance, efficiency, and scalability, allowing companies to meet the increasing demand for data storage and processing capabilities effectively.
- United States facts from the CIA World Factbook: Location: North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico Natural hazards: tsunamis, volcanoes, and earthquake activity around Pacific Basin; hurricanes along the Atlantic and Gulf of Mexico coasts; tornadoes in the midwest and southeast; mud slides in California; forest fires in the west; flooding; permafrost in northern Alaska, a major impediment to development Telecommunications: general assessment: the US telecom sector adapted well to the particular demands of the pandemic, which has led to strong growth in the number of mobile, mobile broadband, and fixed broadband subscribers since 2020; the level of growth is expected to taper off from late 2022 as the demand for working and schooling from home subsides; the pandemic also encouraged the Federal government to increase its investment in broadband infrastructure; of particular note was the Infrastructure Investment and Jobs Act of November 2021, which provided $65 billion to a range of programs aimed at delivering broadband to unserved areas, providing fiber-based broadband to upgrade existing service areas, and subsidizing the cost of services to low income households; alongside these fiscal efforts have been the several spectrum auctions undertaken during the