D A T A C E N T R E P R E D I C T I O N S

COMPANIES IN THE US DATA CENTRE CONSTRUCTION MARKET ARE SAID IN THE REPORT TO BE FOCUSSING ON SUSTAINABLE BUILDING MATERIALS TO REDUCE CARBON EMISSIONS. challenges. By utilising energy-efficient infrastructure and integrating carbonfree solutions, data centres significantly reduce operational costs and promote environmental responsibility. The report references‘ a few’ data centre operators that are considering nuclear power as a low-carbon energy source. Data centre operators might publicly support nuclear as a carbon-neutral option and some major companies are already mentioning their role in providing low-carbon electricity. Big companies like AWS, Google and Microsoft also have mentioned nuclear power as a low-carbon electricity option. In October 2024, Google partnered with Kairos Power to utilise small nuclear reactors for powering its AI data centres, aiming to deploy its first reactor by 2030

Companies in the US data centre construction market are said in the report to be focussing on sustainable building materials to reduce carbon emissions. For instance, the report says, in October 2024, Microsoft utilised cross-laminated timber( CLT) in the construction of its Northern Virginia data centres, aiming to reduce the embodied carbon footprint by up to 35 % compared to steel and 65 % compared to concrete.

Geographical analysis

• Northern Virginia continues to dominate the data centre growth, with strong contributions from local counties such as Fairfax, Loudoun and Prince William counties. Over 9 GW of data centre capacity is expected to be added across North Virginia during 2025 – 2030.

• Texas is the second-largest data centre market in the United States. Cities like Dallas, Austin, Irving, San Antonio and Houston are attracting hyperscale self-built and colocation investments. In 2024, Texas contributed to a data centre capacity addition of around 350 MW, with colocation contributing to over 60 % of the capacity additions.

• In 2024, Georgia gained significant momentum in data centre supply, particularly in Atlanta and surrounding areas like Lithia Springs and Douglasville. The market has transitioned from a Tier-II status to a key destination due to the availability of land and power. The market is expected to witness a capacity addition of over 2.2 GW during 2025 – 2030.

• Arizona, particularly Phoenix, continues to become an attractive location for colocation and hyperscale development due to better power availability, lower disaster risks and cost efficiency. Locations like Mesa, Goodyear and Chandler also continue to witness significant growth.

• Illinois, with key locations such as Chicago, Elk Grove Village and Aurora, is growing as a Midwest data centre hub. The strategic location of Chicago and demand from cloud service providers drives persistent growth.

• Oregon, with locations like Portland and Hillsboro, is one of the fastestgrowing data centre markets. Abundant power, business-friendly tax policies and cool climates support sustainable cooling methods.

• New York / New Jersey, while constrained by space for hyperscale development, remains a key market for colocation facilities. The Northeast region is poised for growth in edge data centre facilities, particularly in areas with space constraints. �

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