Beyond the Usual Suspects: Emerging US Markets for Data Centers

Описание: In this episode of the Data Center Counsel podcast, Scott Segal and Tamara McKinzie examine the shifting geography of US data center development. What was once concentrated in traditional hubs like Northern Virginia is rapidly expanding into rural and emerging markets across Texas, Oklahoma, Kentucky, North Dakota, South Dakota and parts of the Southeast.

Scott and Tamara look at the drivers behind this migration — including land availability, speed to power, regulatory certainty and grid reliability — as well as the growing pushback from communities concerned about energy prices, water usage and land preservation. They discuss the growing importance of regulatory certainty, land-use considerations and affordable electricity as communities evaluate the potential impacts of large-load development.

Episode Highlights
[1:55] From Northern Virginia to Rural America: Scott and Tamara look at how data center development historically clustered in Northern Virginia and other tech hubs. As power constraints and land limitations emerged, developers began targeting rural areas — particularly in West Texas, Oklahoma and agricultural regions — where large tracts of affordable land are available and zoning restrictions may be less burdensome.

[4:13] Rural Pushback and Agricultural Preservation: As development moves into sparsely populated areas, community concerns are growing. Residents are increasingly focused on electricity prices, water usage, noise and the long-term loss of agricultural land. Scott and Tamara underscore how political proposals to protect farmland could shape future siting decisions and create new regulatory hurdles for developers.

[6:16] Speed to Power and Grid Governance: Scott and Tamara examine how grid structure, interconnection queues and regulatory frameworks — particularly in regions like PJM, ERCOT and Georgia — are influencing where projects move forward. States that can provide regulatory clarity, disciplined queue management and credible pipelines for infrastructure build out are better positioned to compete for development.

[19:27] The Importance of Certainty in Real Estate and Permitting: From a real estate perspective, certainty is critical. Developers must negotiate land agreements that allow enough time for due diligence, permitting and infrastructure planning, while still providing landowners with confidence that projects will materialize. Streamlined permitting, pre-zoned districts and predictable timelines are increasingly central to market competitiveness.

[25:00] Affordability, Cost-Sharing and the Political Climate: As electricity affordability becomes a central political issue, data center development faces new scrutiny. Scott and Tamara explore whether large-load projects can help finance transmission upgrades and strengthen grid infrastructure, rather than burden ratepayers. Effective communication, transparency and community engagement will be essential as states balance economic development with rising consumer utility costs.

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