"Texas and the Midwest are becoming the key hubs for the largest and most powerful data centers for cloud and AI computing, shifting the industry's nexus away from Northern Virginia. The two regions accounted for one-third of hyperscale data center capacity at the end of 2025, according to Synergy, an IT market research firm."
"Power availability is driving the shift inland. Companies building the largest facilities are seeking land with readily available electricity. The sprawling data center buildout in the US is straining the nation's aging power grid and fueling concerns over rising electricity costs."
"Texas leads the country in new data center development by a wide margin, though the Midwest is quickly growing in importance. Wisconsin has attracted major data center projects from Meta, OpenAI, and Microsoft, while Michigan houses an Oracle-backed Stargate data center."
"One factor in Texas's data center boom is the BYOP (bring your own power) phenomenon. A number of data centers in the state are avoiding the grid altogether and building their own on-site power plants, fueled mostly with natural gas."
Texas and the Midwest are emerging as primary locations for large data centers, overtaking Northern Virginia. By the end of 2025, these regions will account for one-third of hyperscale data center capacity. They are projected to represent 53% of new capacity in the coming years. The shift is driven by the need for readily available electricity, as the current power grid faces strain. Texas leads in development, with significant projects in Wisconsin, Indiana, Michigan, and Missouri, while Ohio benefits from tax incentives for data centers.
Read at www.businessinsider.com
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