Power defines America’s next data center era
Visit our website for annual economic reports, key interviews with market leaders, and our video and podcast series Invest: Insights.
- After an unexpectedly subdued year for domestic travel, the great American road trip is poised for a comeback in 2026 as traveler preferences shift in the lead-up to the nation’s 250th anniversary.
- More than 300 executives, educators, and public officials attended the Invest: Houston 2nd Edition Leadership Summit on Nov. 20, gathering for conversations focused on strengthening Houston’s talent pipeline, expanding its innovation capacity, and advancing sustainable development across the region’s major industries.
- The Triangle has officially joined one of the world’s most exclusive dining networks. Earlier this month, the MICHELIN Guide unveiled its first-ever edition dedicated to the American South, recognizing 14 Raleigh-area restaurants and four across Durham and the broader region. For local chefs, tourism leaders, and economic developers, the news confirms what many have long believed: Raleigh-Durham’s food scene has arrived on the world stage.
- The Garden State is stepping confidently onto the global stage. As the state prepares to host the 2026 FIFA World Cup final at MetLife Stadium, its leaders are strengthening partnerships, collaboration, and investment in infrastructure to ensure that is ready to welcome global tourism.
Power defines America’s next data center era
Writer: Mirella Franzese
November 2025 — The balance of data centers in the U.S. has shifted, according to a new report. While investments in data center infrastructure are expected to exceed $4 trillion globally by 2030, more than 40% will be invested in the United States, shaping the dynamics of local economies. Where this spending will trickle down to is still uncertain, but one key factor will play a decisive role: power.
At this scale, data centers are expected to tip the balance of entire regions, unlocking major growth, creating thousands of high-skill and high-wages jobs, and driving innovation across industries.
Yet, in recent years, data center demand has well outpaced the energy capacity required to support it — a gap which is only expected to grow wider in the near-term.
“Demand for power exceeds the growth capabilities of utilities,” said Mike Brady, VP of power generation execution for national energy provider Liberty Energy, in an interview with Invest:.
McKinsey projects that data center demand in the U.S. will grow by 20% to 25% per year until 2030, while capacity will rise at a much slower rate. This alone will not be sufficient to meet demand, according to JLL.
At this rate, the U.S. will need three times the current level of energy consumption to maintain the surge in demand for data centers expected from 2023-2030. This new load on regional grids will call for additional infrastructure development, such as new energy resources and expansions in transmission. Yet, timelines for these build-outs will likely lag, given the rapid pace of data center growth in the country.
The availability of power and the speed of infrastructure delivery have therefore become the most decisive factors shaping site selection for data center projects across all U.S. markets, according to CBRE.
“Tech companies and hyperscalers are looking for power that is reliable, affordable, and low-carbon,” said Ricky Sakai, SVP of investment business development at Mitsubishi Heavy Industries America, in an interview with Invest:.
As a result, data centers have popped up in some of America’s more remote locations, especially in markets like Phoenix, Dallas, Northern California, Northern Virginia, and Chicago — all favored due to their abundance in power supply and grid resilience.
In each of these regional economies, data centers are unlocking millions — if not billions — of dollars worth in direct and indirect expenditures, as per McKinsey estimates. The distribution of data centers across the U.S. is also shifting the national balance of power towards more isolated markets.
The city of Gallatin in Middle Tennessee is a prime example: Meta’s $1.5 billion investment in the Gallatin Data Center delivered more than $1 million in direct funding to Sumner County schools and non-profits, and created more than 1,000 skilled trade jobs for its construction.
“The biggest highlight of our year has been the grand opening of our Meta hyperscale data center, a $1 billion investment in our city,” Gallatin Economic Development Agency Executive Director Rosemary Bates told Invest:. “It’s a massive project, and its presence is significant for Gallatin.”
The potential for emerging data center markets is considerable as well, especially in states like Pennsylvania, where the demand for power is burgeoning, but energy resources are abundant.
“Pittsburgh is a sleeper town with a huge opportunity to have data center infrastructure. Today, our mission focuses on taking advantage of big opportunities in an effort to grow southwestern PA's economy, and right now, that’s through our energy assets,” said Matt Smith, chief growth officer of the Allegheny Conference on Community Development, in an interview with Invest:.
“These energy assets are attracting AI, data centers, and large-scale industrial and manufacturing projects, driving the economy forward.”
“Power is driving our economic solutions,” said Brady. “We’re only scratching the surface…The energy needed for the computing power, without latency issues, is enormous ... We are going to see incredible changes in our lives.
Yet, power alone won’t be enough to lure in capital investment, observed Smith. “Something that is clear across all of these big projects – whether it's a data center or an industrial project making advanced switchgear – is that they all want speed.”
“Whether that's permitting efficiency or making sure that local governments and the community are supportive … all that goes to the idea of getting the project up and out of the ground quickly,” he added.
In general, launching a data center requires significant land, labor, and equipment resources, which, if constrained, could upset the timely completion and operational efficiency of new data center projects.
This means that states looking to attract large-scale data center investment will need to balance energy capacity and agility to deploy infrastructure with demand in order to secure bigger prospects.
Looking to network and grow your business? Learn more about our upcoming Invest: leadership summits in a city near you!
Jan. 14, 2026: Invest: New Jersey 6th Edition Leadership Summit
Feb. 12, 2026: Invest: Philadelphia 6th Edition Leadership Summit
Feb. 26, 2026: Invest: Pittsburgh 3rd Edition Leadership Summit
Discover what’s inside our comprehensive economic reports in the video below:
Maximize networking opportunities across caa markets the new professional networking app Conexio! Download on the App Store today!
Partner with us and make an impact! Contact us for event sponsorship & advertising opportunities here: contact@capitalaa.com
A caa membership offers readers full access to member-only stories including exclusive interviews and market analysis on key sectors in U.S. metro areas.