Key States Propel the Midwest to Become America's Second-Largest Data Center Hub

Construction of a New Data Center: A new metacenter campus is being developed in Beaver Dam, Wisconsin, as Texas and the Midwest emerge as key hubs for data centers, shifting the industry's focus away from Northern Virginia.

Growth in Data Center Capacity: By the end of 2025, Texas and the Midwest are projected to account for one-third of hyper-scale data center capacity, with these regions expected to host 53% of new capacity coming online in the coming years.

Factors Driving the Shift: The availability of power is a significant factor driving the relocation of data centers, with companies seeking land with readily available electricity to support their operations.

Incentives and Development: States like Texas are offering generous tax incentives to attract data center development, including long-term property tax abatements, while companies are increasingly building their own on-site power plants to avoid grid dependency.