The U.S. data center market is growing fast, driven by demand for AI and hyperscale computing. Key highlights:
Power availability and workforce planning are now the biggest factors shaping where and how data centers are built.
U.S. Data Center Growth by State: Capacity, Infrastructure, and Key Advantages
Four states are leading the charge in data center construction, each offering unique benefits that attract hyperscale developers.
Northern Virginia continues to be the world's most concentrated data center hub, but it's hitting some significant roadblocks. The region faces delays of up to eight years for PJM interconnections, and capacity prices are projected to skyrocket - from under $30/MW-day to over $300/MW-day between the 2024 and 2027 auctions. Despite these hurdles, Virginia still leads the pack with 663 operational data centers and 595 more in the pipeline. The area’s strong points include its established fiber network and proximity to federal agencies. However, future growth will likely focus on optimizing existing sites rather than building new ones.
Texas is on track to surpass Virginia as the largest data center market globally by 2030, with 6.5 GW currently under construction. The state’s appeal lies in its vast land availability for massive campuses (ranging from 200 to 750 MW), the flexibility of the ERCOT grid, and its diverse energy and cooling portfolio, including solar, wind, and natural gas. A standout project is the $100 billion Stargate development in Abilene, led by Oracle and OpenAI, which highlights the immense opportunities Texas offers.
Curt Holcomb, Vice Chairman at JLL, emphasized, "Texas is the best example of a market that has adequate transmission infrastructure, excess power generation capability, and the ability to bring new generation to market."
Georgia has seen its IT load explode from 1.7 GW in 2021 to an anticipated 19.7 GW by 2025. This growth is fueled by a 4.5 GW baseload from the Vogtle nuclear plant and a $1.8 billion Microsoft investment, which adds 324 MW of capacity. The state now hosts 162 operational data centers and has 285 planned - a 176% increase. Developers are expanding into suburban areas to ease transmission bottlenecks near Atlanta.
Pennsylvania is emerging as an alternative to ease East Coast power constraints. Its data center capacity has jumped from 0.2 GW in 2021 to 7.8 GW by late 2025. The state’s strategy includes repurposing old industrial sites, proximity to major metropolitan areas like New York City and Washington, D.C., and supportive policies. Notable projects include the 1,500-acre Zediker Station in Washington County, which uses natural gas and remediated mine gas for net-zero power, and the restart of the Unit 1 reactor at the Crane Clean Energy Center.
| State | Operational Units | Planned Units | Growth Rate | Key Advantage |
|---|---|---|---|---|
| Virginia | 663 | 595 | Mature | Established fiber infrastructure |
| Texas | 405 | 442 | 6.5 GW construction | ERCOT flexibility, abundant land |
| Georgia | 162 | 285 | 176% increase | Nuclear baseload (Vogtle plant) |
| Pennsylvania | 98 | 184 | 188% increase | Industrial site reuse, nuclear PPAs |
These differences in market dynamics influence workforce needs and construction strategies, as each state’s unique advantages create specific demands.
Beyond these state-specific trends, a broader shift is occurring. Traditional hubs like Silicon Valley and Northern Virginia are seeing slower growth, while newer markets are booming. Currently, 64% of the 35 GW construction pipeline in North America is located in these emerging regions.
Established hubs face mounting challenges, including land costs that are 14 times higher than in newer markets, grid connection delays averaging four years, and increasing regulatory barriers. For example, California is losing ground to states like Tennessee and Wisconsin, which now rank higher in total capacity under development. The Pacific Northwest and Chicago are also experiencing slowdowns.
Meanwhile, emerging markets are thriving. Las Vegas and Reno are projected to grow by an astonishing 953%, increasing from 362 MW to 3,812 MW by 2025. Salt Lake City is expected to grow by 699%, while Phoenix and Atlanta are forecast to expand by 554% and 484%, respectively. These areas benefit from electricity rates up to 35% lower than the national average and faster permitting processes.
Andrew Batson, Global Head of Data Center Research at JLL, explained, "Traditional hubs are hitting hard limits on power, land, and approvals, while frontier markets offer what hyperscalers and enterprises need most: available capacity, reasonable pricing, and speed to market."
The rise of megacampuses - developments exceeding 1 GW - further reshapes the landscape. These massive projects can quickly elevate new markets above established ones in terms of capacity. Currently, more than 10 such megacampuses are under construction across North America. Developers are increasingly prioritizing power availability over proximity to end-users, which shifts the focus to regions with abundant resources. These large-scale projects also heighten the demand for specialized construction roles, setting the stage for evolving strategies in workforce development and project execution.
The availability of power has become the top factor in deciding where data centers are built. Regions that can reliably supply electricity are now the go-to choices for site selection. As Mohit Kaul, Founder & CEO of Enerdatics, explains:
"The data center market is no longer constrained by demand, it's constrained by deliverability. In 2026, site selection is fundamentally a power strategy."
The numbers back this up. Across the U.S., there are over 10,000 projects in the pipeline, representing 1,400 GW of generation and storage capacity. However, connecting these projects to the grid takes an average of four years, forcing developers to lock in power capacity long before construction even begins. This delay has shifted data center projects to power-ready regions - 64% of the 35 GW construction pipeline has moved to less traditional, emerging markets.
But the challenge isn’t just about generating power. It’s also about having the infrastructure - like high-voltage transmission lines - to deliver that power where it’s needed. Even energy-rich areas face risks of congestion or curtailment if transmission capacity is lacking. This has created a stark contrast between regions with robust power infrastructure and those that struggle to keep up.
The divide between power-constrained and power-ready states is striking. California, for example, leads the nation in long-term transmission planning with $4.8 billion in projects planned through 2039. Yet, challenges with execution and permitting severely hinder its ability to expand capacity. These hurdles have driven developers to neighboring Western states, where power delivery timelines are more predictable.
On the other hand, Texas benefits from its independent ERCOT grid, allowing it to add solar, wind, and natural gas generation more easily than other regions. However, this comes with challenges like price volatility and congestion risks.
The Plains region (SPP) stands out for its strong 765-kV transmission network, earning it a B‑grade for transmission planning and making it well-suited for large-scale AI deployments. Meanwhile, the Southeast lags behind with fragmented planning and a high risk of bottlenecks, earning it an F‑grade. These regional differences in power infrastructure directly impact data center investments and project timelines.
| Region | Planning Grade | Key Characteristic | Primary Challenge/Advantage |
|---|---|---|---|
| California (CAISO) | A‑ | Leading long-term planning | High execution and permitting hurdles |
| Plains (SPP) | B‑ | Robust 765‑kV transmission network | AI‑ready grid infrastructure |
| Texas (ERCOT) | D‑ | Speed to market | Price volatility and congestion risk |
| Southeast | F | Fragmented planning | High risk of future bottlenecks |
Emerging markets are capitalizing on their power infrastructure to attract major data center projects. Mississippi, for example, has seen significant developments like the Compass‑Meridian project, chosen specifically for its available grid capacity. Similarly, Meta’s announcement of a new data center in Louisiana highlights the trend of hyperscalers moving to secondary markets with faster utility timelines.
States like Ohio, Wisconsin, and Tennessee are now outperforming some traditional hubs in terms of total capacity under development. These areas offer abundant energy resources and streamlined permitting processes, which help speed up project delivery. As John McWilliams of Cushman & Wakefield puts it:
"First and foremost, any regions that can deliver power to sites are going to have a leg up."
Pennsylvania is a great example of how power assets can transform a region. The restart of the Unit 1 reactor at the Crane Clean Energy Center now provides dedicated carbon-free nuclear power. Additionally, the state’s natural gas resources and remediated mine gas technology add further capacity options. Central Washington continues to be a draw for projects due to its low energy costs, thanks to hydroelectric power from the Columbia River. However, even this market is beginning to face constraints.
To navigate these challenges, developers are adopting innovative strategies. Many are turning to behind-the-meter solutions, such as on-site generation and microgrids, to mitigate schedule risks from grid connection delays. Others are co-funding transmission projects or partnering directly with utilities to actively participate in grid planning. Bruno Berti, Senior VP of Global Product Management at NTT, sums it up:
"Energy strategy and data center strategy have fully converged, making power a core part of how AI capacity is planned, delivered, and scaled."
These evolving power strategies are shaping how construction firms plan and staff projects, as workforce needs vary significantly between established hubs and emerging markets. This shift requires construction teams to prepare for complex energy and land use requirements in these new regions.
The boom in data center construction across the U.S. has created unique hiring challenges that vary significantly by region. Established hubs and emerging markets face different demands for talent, making workforce development a key concern.
Northern Virginia remains the epicenter of hiring demand, with roles like mission-critical superintendents, MEP coordinators, and commissioning managers topping the list. These positions require expertise in live-environment coordination and strict commissioning protocols. With a staggering 16.8 GW of capacity either under construction or planned, the region faces a critical shortage of qualified professionals.
In Texas, areas like Dallas-Fort Worth and Houston are focusing on filling positions such as construction project managers, senior superintendents, and AI infrastructure specialists. These roles are essential for large-scale projects, including Vantage Data Centers' $25 billion campus in Shackelford County, which is expected to generate 5,000 jobs spanning construction and operations. Meanwhile, Atlanta's data center market in Georgia has seen a 222% inventory increase in 2024, driving demand for experienced mission-critical superintendents, MEP coordinators, and QA/QC professionals. Projects like Microsoft's one-million-square-foot facility have further amplified hiring needs.
Skilled trades are in high demand across all regions. For example:
However, the hiring crisis is widespread. A staggering 82% of construction firms report difficulty hiring hourly craft workers, and 80% struggle to fill salaried roles. These challenges are even more acute in regions with rapid development, intensifying competition for skilled labor.
The talent dynamics differ sharply between mature and emerging markets. In established hubs like Northern Virginia, the local talent pool is quickly depleted. This forces companies to either poach talent from competitors or bring in teams from other regions, such as the Carolinas or the Midwest. Salaries in these markets are notably higher, with mission-critical superintendents and project managers earning at least 10% more than their counterparts in general commercial construction. According to The Birmingham Group:
"A superintendent who has successfully delivered a 200 MW facility in Northern Virginia is fundamentally more valuable than someone with general commercial experience."
In contrast, developing markets like Nebraska face different challenges. For instance, Meta's multi-phase campus expansion in Sarpy County has strained the local workforce, which lacks mission-critical expertise. To address this, companies often import talent, incurring significant per diem and travel expenses. Some firms have adopted a "hub-and-spoke" approach, rotating core leadership teams between projects while hiring local labor for general trades. Others are reskilling workers from commercial and industrial sectors to meet the demand for mission-critical roles.
This stark difference in regional expertise impacts project timelines and construction quality, emphasizing the need for tailored recruitment strategies to meet these challenges effectively.
To tackle the workforce challenges unique to data center construction, recruitment strategies need to be proactive and aligned with the fast-paced demands of these projects. Unlike traditional hiring practices, which often focus on permanent roles, data center projects benefit more from a project-based recruitment approach. This method allows firms to source, evaluate, and deploy workers for specific construction phases, releasing them once their tasks are complete.
Data center construction operates under tight deadlines, with overlapping activities like electrical rough-in, mechanical installation, and controls integration. Recruitment plans must align with key project milestones, such as energization, controls integration, and commissioning, to ensure smooth progress.
A scope-driven hiring approach has become the standard. Instead of broadly hiring "electricians", for instance, firms now target workers with certifications in high-density electrical systems, ensuring they're ready for inspections and avoiding delays.
Tyler Scott from PeopleSolutions highlights commissioning as a critical pressure point:
Commissioning is where labor shortages cause the most disruption. Data center commissioning talent is becoming harder to find, timelines are tight, and errors are costly.
This underscores the importance of prioritizing recruitment for specialized late-stage roles early in the project. Waiting until commissioning to hire these technicians often leads to significant workforce gaps.
Successful companies strike a balance by maintaining a core team of permanent project managers and safety leaders while relying on contract-based skilled trades for phase-specific tasks. Including clear demobilization points in recruitment plans helps control payroll costs after a phase ends. As Scott puts it:
Project-based recruitment fits the reality better because it treats labor as a phase-driven requirement with a clear demobilization point.
In addition to project-based hiring, training programs are essential for addressing long-term skill shortages. In regions where specialized expertise is limited, these programs provide a sustainable solution. Instead of relying on costly imported talent, many firms are forming partnerships with trade schools and apprenticeship programs to create a steady pipeline of workers trained for the unique demands of data center projects.
This strategy is particularly evident in high-demand areas like Virginia and Texas, where a surge in projects has created a compressed labor market. By fostering relationships with local labor networks and apprenticeship programs, companies can reduce delays caused by relocating workers from other regions.
Moreover, aligning with training providers who understand data center-specific needs - such as documentation, safety protocols, and owner requirements - is critical. Credential verification should directly reflect site-specific standards, ensuring workers are equipped not just with general construction skills but also with the precise certifications needed for inspections and turnover. This prevents delays caused by incomplete documentation and ensures readiness at every stage.
The growth of regional data centers depends heavily on power availability, making proactive workforce planning a necessity. With $710 billion in planned capital expenditures by 2026 and emerging markets driving much of the activity, construction firms can no longer afford to rely on reactive hiring practices. As development shifts away from traditional hubs like Northern Virginia and Silicon Valley, recruitment efforts must adapt to regions that have historically lacked specialized data center expertise. This requires strategies tailored to regional needs and project timelines.
For contractors, labor availability has become the biggest challenge for 2025 and 2026 - not funding or project demand. Many firms are struggling to fill both hourly and salaried positions. The rise of massive megacampuses exceeding 1 GW in capacity further intensifies the demand, often stretching local labor markets to their limits.
To stay ahead, firms are now recruiting 6–12 months before breaking ground, using hub-and-spoke models where core teams move between major projects, and building partnerships with technical schools and apprenticeship programs in emerging markets. These efforts recognize that hiring challenges can lead to schedule overruns and increased costs of 10%–20%.
The need for rapid workforce expansion is pressing. With 35 GW of capacity under construction - almost matching the existing 39 GW inventory - and 92% of that pipeline already pre-leased or owner-occupied, construction teams must scale up quickly. This unprecedented growth highlights the importance of flexible hiring strategies. For more insights, check out our comprehensive guide on data center construction.
Proactive workforce planning is critical for keeping projects on schedule. Firms that treat labor as a strategic element, align hiring with construction phases, and invest in training programs will be better equipped to seize the opportunities ahead. On the other hand, those that fail to adapt may face stiff competition for a shrinking pool of skilled talent, where experienced superintendents and project managers are already commanding salaries 10% higher than those in general commercial construction. By syncing talent acquisition with project milestones and power strategies, firms can minimize delays and set the stage for successful project delivery.
With the surge in energy demands driven by AI workloads and hyperscale expansion, power delivery has become the primary consideration for data center site selection. Developers are now focusing on locations that offer reliable power sources, direct grid access, and renewable energy options to ensure long-term sustainability and efficiency.
Regions such as Texas, Ohio, and Pennsylvania have emerged as leading choices thanks to their robust infrastructure and substantial power capacity. However, the industry isn't without challenges. Grid resilience remains a pressing concern, and phased power expansion strategies are essential to keep up with the growing demand. This shift underscores the critical role of energy infrastructure in shaping the future of data centers.
The toughest positions to fill in data center construction include electricians, MEP specialists, commissioning engineers, controls engineers, BMS specialists, and integration engineers. The hiring challenges for these roles stem from a combination of a shrinking workforce and soaring demand across the industry.
Contractors can tackle talent shortages in emerging markets by focusing on targeted recruitment strategies and collaborating with trade schools to create specialized training programs. Sourcing talent from industries with transferable skills - such as oil and gas - can also help fill essential positions.
Other effective approaches include relocating skilled workers to areas where they’re needed, offering short-term certification programs to reskill workers quickly, and starting workforce planning early by engaging with educational institutions. These steps are crucial for building a reliable and skilled workforce for data center projects.
