U.S. Data center inventory 2021-2025, by primary market

Northern Virginia is by far the largest data center market in the United States when measured by total inventory. The region had capacity of over ***** megawatts in the second half of 2025, an increase of ***************** on the previous year. The Atlanta region had the second-highest capacity, followed by Dallas/Ft. Worth.

Northern Virginia could face a slowdown in construction

Situated close to major east coast urban centers, the Northern Virginia region is considered a key hyperscale data center hub. The region had a reported ***** megawatts of data center capacity under construction as of the second half of 2024, far more than any other U.S. market. However, future expansion may be hindered by shifting local infrastructure conditions, with the growing impact of large-scale facilities leading local decision makers to reassess planning legislation. 

Rental rates on the rise

The average monthly rental rate for data center capacity in primary U.S. markets surged to over **************** per kilowatt in 2024. This is partially due to increased demand, with digital transformation driving the adoption of cloud services and the adoption of data-intensive artificial intelligence (AI) applications. However, data center operators are also experiencing difficulties in data center construction as rising utility costs and supply chain pressure continue to apply pressure.