Fastest Growing Locations for Data Centers

Demand for new data center locations is expanding well beyond traditional technology hubs.

With AI adoption accelerating, the competition for power has become one of the defining factors in where new data centers are built. Many traditional markets are facing grid constraints, permitting challenges, and limited available land, pushing developers to evaluate new regions. As a result, growth is shifting toward locations that can bring power online quickly and support the next generation of high-density computing infrastructure.

As organizations invest in AI, cloud platforms, advanced analytics, and digital services, they need locations with reliable power, connectivity, available land, and a workforce capable of supporting large-scale infrastructure. The result is a new wave of growth across the globe.

So, which data center locations are growing the fastest in the U.S. and around the world? Let’s check them out.

DOWNLOAD: Insight Global’s Guide to Data Centers

What’s Driving New Data Center Locations?

Several trends are shaping where new data center locations emerge around the world:

Power availability is overtaking connectivity as the primary site-selection factor, pushing developers beyond traditional hubs and into new markets with greater energy capacity.
Growth is expanding into more rural and frontier markets, as operators look for available land, faster development timelines, and opportunities to support large-scale AI infrastructure.
Workforce availability remains a critical consideration, particularly for construction, commissioning, operations, and other specialized roles needed to bring facilities online and keep them running.
Much of today’s investment is centered around hyperscale, cloud, and AI-focused facilities, which require significantly more power and infrastructure than traditional enterprise data centers.

Booming United States Data Center Locations

Data center builds are increasing in states that can provide reliable power, available land, strong connectivity, and supportive development environments.

Texas

Texas is benefiting from a rare combination of abundant energy resources, available land, and a business environment capable of supporting hyperscale and AI-driven development at enormous scale. It has emerged as one of the most important data center locations in the U.S.

According to Bloom Energy’s 2026 Data Center Power Report, Texas is projected to exceed 40 GW of data center capacity by 2028 and could account for nearly 30% of total U.S. demand. JLL also identifies West Texas as one of the largest beneficiaries of the industry’s shift toward frontier markets offering greater access to power.

Virginia

Virginia remains the largest and most established data center market in the world. Northern Virginia’s growth is fueled by its concentration of network connectivity, cloud infrastructure, and existing data center capacity, making it difficult for other markets to replicate.

Pew Research Center found that Virginia leads the nation in planned data centers, while the Virginia Economic Development Partnership reports that the state hosts nearly 35% of all known hyperscale data centers worldwide. As demand expands beyond Northern Virginia, developers are increasingly evaluating opportunities throughout the broader region.

Georgia

Georgia has emerged as a major data center destination thanks to strong fiber connectivity, available development sites, and investments aimed at supporting long-term power demand.

Pew Research Center identified Georgia as one of the states with the highest number of planned data centers nationwide. Additionally, CBRE notes that Atlanta’s vacancy rate fell to just 1% in early 2026 as robust leasing activity continued to absorb available capacity.

Tennessee

As power constraints intensify in traditional hubs, Tennessee is attracting developers looking for competitive incentives, available land, expanding generation capacity, and access to the Tennessee Valley Authority’s infrastructure network.

CBRE reports that Tennessee is among North America’s emerging data center markets. Data centers accounted for roughly 18% of the state’s industrial electricity demand in 2025. The Tennessee Valley Authority expects that demand to continue increasing as more than 6 GW of new generation capacity comes online by 2030.

Ohio

Ohio has become an increasingly important destination for data center development as organizations expand beyond traditional hubs. Access to power, land availability, and a central U.S. location continue to support growth across the state and make it an increasingly attractive alternative to more congested data center markets.

Ohio ranks highly among the states with the largest number of operating data centers in the country. JLL also identifies Ohio as one of the frontier markets benefiting significantly from the current wave of infrastructure investment.

Indiana

Indiana is emerging as a key growth market as developers seek locations with scalable power and fewer development constraints than established hubs. The state’s central location and industrial infrastructure have increased its appeal for large-scale projects.

Reuters identified Indiana among the states with substantial planned data center capacity additions, while JLL highlights Indiana as one of the frontier markets that has benefited significantly from the industry’s expansion into new regions.

Louisiana

Louisiana has attracted significant attention from hyperscale and AI-related developments in recent years. Access to energy infrastructure and available land has positioned the state as an emerging destination for large-scale deployments.

Louisiana is among the states planning more than 3 GW of new computing capacity. The state’s growing role in supporting next-generation AI infrastructure has helped elevate its profile within the data center industry. Meta is currently constructing their Hyperion data center campus in northern Louisiana and plans to scale it to 5 GW of power, with 2 GW online by 2030.

Arizona

Arizona’s growth is being driven by continued hyperscale expansion around Phoenix, where developers are pursuing some of the largest data center projects in the western United States. Power availability and proximity to major technology and semiconductor investments continue to support new development.

According to the Phoenix Data Center Market analysis from CBRE, Phoenix absorbed 256 MW of colocation space and power in the second half of 2025. Multiple projects across Mesa, Phoenix, Avondale, Goodyear, and Glendale were expected to come online within the following year.

Pennsylvania

Pennsylvania is benefiting from growing demand for power-rich locations that can support large AI and cloud infrastructure projects while remaining close to major East Coast population centers.

In 2025, Amazon announced plans to invest at least $20 billion in Pennsylvania data center infrastructure to support AI and cloud computing, representing the largest private-sector investment in the state’s history and creating multiple new innovation campuses.

New Mexico

New Mexico is gaining momentum as developers seek power-advantaged locations with the land and energy resources needed to support the next generation of AI infrastructure.

Meta has invested more than $2.5 billion in New Mexico since establishing its Los Lunas data center campus, helping position the state as an increasingly important destination for large-scale digital infrastructure. The company is also pursuing further expansion, including the acquisition of 475 additional acres adjacent to the campus and plans for new facilities designed to support future AI workloads.

Fastest Growing International Data Center Locations

But the U.S. isn’t the only part of the world experiencing a data center boom. From established European hubs to rapidly expanding markets across Asia-Pacific and Latin America, these locations are seeing some of the strongest data center growth globally.

United Kingdom

The United Kingdom remains one of Europe’s largest data center markets, led by London and surrounding regions. While power constraints have slowed development in some areas, demand continues to outpace supply.

According to JLL, London added 49 MW of new capacity in the first half of 2026 and remains the largest data center market in Europe. Growth is increasingly extending beyond the capital as operators search for power availability and faster development timelines.

Germany

Germany continues to benefit from its position as a major European connectivity hub. Frankfurt remains one of the continent’s most important data center markets due to its internet exchange infrastructure and central location.

JLL reports that Frankfurt has more than 300 MW under development and nearly 700 MW in the planning pipeline despite lengthy grid-connection timelines.

France

France has emerged as one of Europe’s fastest-growing markets. JLL found that Paris led all major European markets in new capacity deliveries during the first half of 2026, adding 72.5 MW. Access to nuclear-generated electricity, strong connectivity, and a growing digital economy continue to attract hyperscale and colocation investment.

China

China remains one of the world’s largest data center markets. Government-backed digital infrastructure initiatives, cloud adoption, AI investments, and the country’s “Eastern Data, Western Computing” strategy continue to drive development into new regions.

Major cities such as Beijing, Shanghai, Shenzhen, and emerging inland markets are seeing continued investment as organizations look for scalable computing capacity and improved energy efficiency.

India

India is rapidly becoming one of the most important global data center markets. The Indian Ministry of Electronics and Information Technology reported that national data center capacity increased from approximately 375 MW in 2020 to roughly 1,500 MW by 2025.

The government also estimates electricity demand from data centers could reach 13.56 GW by 2031-32. Major hubs include Mumbai, Hyderabad, Bengaluru, Noida, and Chennai.

Australia

Australia is attracting significant data center investment fueled by cloud adoption, AI workloads, and growing enterprise demand. Sydney and Melbourne remain the primary hubs, but secondary markets are gaining attention due to power availability and land constraints in larger cities.

CBRE identified Australia as one of the Asia-Pacific markets best positioned to capture future data center growth because of its available power capacity and expanding infrastructure.

Japan

Japan remains the second-largest developed data center market after the United States. According to JLL, roughly 90% of Japan’s data centers are concentrated in the Tokyo and Osaka regions.

Government initiatives aimed at expanding digital infrastructure and encouraging regional development are driving new investment opportunities outside these traditional hubs.

Malaysia

Few markets are growing faster than Malaysia, particularly Johor. JLL projects Malaysia’s data center capacity will more than double to 2,055 MW by the end of 2026, with an additional 3,500 MW planned beyond that.

Johor’s proximity to Singapore, lower development costs, and increasing connectivity have made it a major destination for hyperscale investment.

Singapore

Despite land and power limitations, Singapore remains one of the world’s most strategic data center locations. The Infocomm Media Development Authority (IMDA) has committed to providing at least 300 MW of additional capacity under its Green Data Centre Roadmap while maintaining strict sustainability requirements.

Singapore’s role as a regional connectivity and financial hub continues to make it one of Asia’s most desirable markets.

Brazil

Brazil is emerging as Latin America’s leading data center market. According to the U.S. International Trade Administration, Brazil’s government is making substantial investments in digital transformation, AI, and cloud infrastructure.

The country is expected to grow its data center capacity from approximately 0.88 GW in 2025 to 1.36 GW by 2030. São Paulo remains the dominant market, while additional regions are attracting investment through hyperscale and edge deployments.

The Future of Data Center Growth

The fastest-growing data center locations today all share a common theme: access to power, land, connectivity, and the people needed to bring infrastructure online. As AI continues to reshape demand, those fundamentals will become even more important.

For organizations planning future data center investments, understanding these regional shifts is only the beginning. Insight Global helps organizations bridge the gap between strategy and execution through talent solutions, consulting expertise, and technical delivery designed for today’s infrastructure demands.

Ready to put your data center plans into action? Reach out to our experts today to start the conversation.