Fundamentals are why Northern Virginia remains the number one U.S. market for data centers, even as power and land are increasingly hard to come by, according to Principal Asset Management in its recent report. They’re also why — despite the fact that some hyperscalers are building huge data centers in far-flung locations for AI model training —there’s no indication of a widespread trend set to unseat the top markets.
There is movement into and out of the top five as fundamentals in a particular area change and as clusters form in new markets. For example, in Northern California, power and real estate constraints along with the high cost of doing business have caused that market to drop out of the top five. Meanwhile, power availability and favorable data center tax abatements in Atlanta have pulled it onto the list.
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