The demand for data centers in the United States is at an all-time high in 2025, driven by the rapid expansion of artificial intelligence (AI), cloud computing, and enterprise storage solutions. As businesses increase their reliance on digital infrastructure, the need for data centers to support these operations continues to grow. The digital transformation of industries, the rise of remote work, and the increasing adoption of AI-powered applications are pushing organizations to invest in cloud-based solutions, leading to a surge in data center construction.
Major tech companies, including Microsoft, Google, Amazon, and Meta, are investing billions in large-scale projects to ensure their networks can handle the increasing data demands. The hyperscale data center market is experiencing exponential growth as companies focus on expanding their infrastructure to keep up with the unprecedented rise in data consumption. These facilities not only store vast amounts of digital information but also serve as the backbone for AI model training, real-time data processing, and global cloud services.
Additionally, the explosion of streaming services, 5G connectivity, and the Internet of Things (IoT) is accelerating the need for reliable and scalable data storage solutions. As a result, commercial real estate markets are seeing significant shifts, with data center construction reshaping traditional industrial and office spaces. Once concentrated in a few key regions like Silicon Valley and Northern Virginia, data centers are now expanding into emerging markets with available land, power infrastructure, and favorable regulatory environments.
Top Data Center Construction Projects in the U.S. for 2025
Understanding the latest data center construction projects can help property managers anticipate market trends, explore investment opportunities, and address the logistical challenges that come with hosting these massive facilities. This guide provides an in-depth look at the five largest data center construction projects in the U.S. in 2025, followed by insights into market growth, emerging locations, and the challenges shaping the industry.
1. Microsoft’s Data Center Campus – Mount Pleasant, Wisconsin
Microsoft is making a significant investment in the Midwest with the development of a massive data center campus in Mount Pleasant, Wisconsin. The company has acquired 315 acres of land for the project, which is estimated to cost $1 billion and is scheduled for completion by the end of 2025.
This project is part of Microsoft’s broader plan to expand its cloud services and AI-driven computing capabilities. The campus will include multiple data halls designed to support high-performance computing workloads, artificial intelligence applications, and large-scale enterprise data storage. The location in Wisconsin was chosen due to its access to power infrastructure, skilled labor, and growing technology industry. The project is also expected to create hundreds of jobs in construction and operations, providing economic benefits to the surrounding area.
2. Oracle’s “Stargate” Data Center Project – Texas
Oracle, in collaboration with OpenAI and SoftBank, is launching one of the most ambitious AI-focused infrastructure projects in the country. The Stargate project, located in Texas, involves an initial $100 billion investment in data centers and power generation facilities. This development is part of a larger $500 billion strategy aimed at scaling AI and cloud computing infrastructure over the next five years.
The facility is being designed to accommodate the increasing demand for AI workloads, which require significantly higher power densities and cooling solutions compared to traditional data centers. Oracle is focusing on incorporating renewable energy sources, including solar and wind power, to mitigate the environmental impact of the project.
3. Meta’s Data Center Expansion – Kansas City, Missouri
Meta is expanding its data center operations with a new $800 million facility in Kansas City, Missouri. The project will focus on supporting AI-driven applications, cloud storage, and social media services.
The data center is expected to span multiple buildings, each equipped with advanced cooling and energy efficiency technologies. Meta is prioritizing sustainability in the design, with plans to power the facility using 100% renewable energy sources. The company has committed to investing in local energy infrastructure to ensure a stable supply of power.
4. Amazon Web Services (AWS) Data Center Campus – Northern Virginia
Northern Virginia remains the largest data center market in the world, and AWS is further solidifying its dominance with a multi-billion-dollar expansion project [(Upwind, 2025)]【27†source】. The new data center campus will add several high-performance computing facilities, reinforcing the region’s position as a global hub for cloud computing.
The AWS expansion will significantly increase the capacity of Amazon’s cloud services, catering to enterprise clients, government contracts, and AI-driven applications. Northern Virginia’s established network infrastructure and connectivity make it an ideal location for data center growth.
5. Google’s $600 Million Data Center – Lincoln, Nebraska
Google is investing $600 million to develop a 600-acre data center in Lincoln, Nebraska, set for completion in July 2025. This facility will enhance Google’s cloud computing capabilities and support AI-driven workloads, contributing to Nebraska’s growing role in the data center industry.
The project is designed to support Google’s long-term expansion in cloud computing, with scalable infrastructure that can accommodate future growth. Nebraska was chosen for its low electricity costs, availability of land, and supportive business environment.
Market Growth & Investment
The U.S. data center sector is experiencing unprecedented growth, driven by the rapid expansion of artificial intelligence (AI), cloud computing, and digital services. In 2024, capital deployment in data center construction reached a record $31.5 billion, reflecting the escalating demand for robust digital infrastructure .
Major Investment Highlights:
Microsoft: The tech giant plans to invest $80 billion in AI-related data centers in 2025, underscoring its commitment to expanding AI capabilities .
Meta: Formerly known as Facebook, Meta is increasing its capital expenditures to $65 billion, up from $38 billion in 2024, to support its growing digital ecosystem .
Google: Allocating $75 billion for cloud infrastructure, Google aims to enhance its data processing and storage capacities to meet global demand .
Amazon: Investing $100 billion, Amazon focuses on expanding its hyperscale data centers to support its extensive cloud services .
These substantial investments are reshaping the commercial real estate landscape, as data center operators seek new land, power sources, and skilled labor to support their growing needs. The rapid development of AI and other technologies has led to increased electricity demand, with data centers emerging as a dominant force behind this surge.
The data center industry’s growth is also influencing employment patterns. While data center construction generates significant employment, once operational, these centers employ comparatively fewer permanent employees . This dynamic has sparked debates about the actual economic impact and job creation potential of the data center boom.
In summary, record-breaking investments in data center construction are not only expanding digital infrastructure but also prompting discussions on energy consumption, employment, and sustainable growth.
Emerging Data Center Markets
While Northern Virginia, Dallas, and Silicon Valley remain dominant, new locations are emerging as prime destinations for data center development. These shifts are driven by factors such as power availability, land costs, regulatory incentives, and connectivity to major digital infrastructure hubs. As traditional markets face constraints like rising costs and limited power supply, data center operators are exploring alternative regions to meet increasing demand.
West Texas
West Texas is rapidly becoming a key location for data center expansion due to its abundant renewable energy resources, lower land costs, and access to underutilized power infrastructure. The region benefits from a high concentration of wind and solar farms, allowing operators to build facilities with a lower environmental impact and reduced reliance on traditional power grids. Additionally, West Texas has a lower population density, meaning there is less competition for energy resources compared to metropolitan hubs. Tech giants and colocation providers are eyeing this region as an ideal location for AI and cloud computing data centers that require high power consumption and cooling efficiency.
The Carolinas and Pennsylvania
The Carolinas and Pennsylvania are gaining traction as emerging data center hubs due to their strategic location, strong fiber connectivity, and business-friendly policies. Charlotte, Raleigh, and Pittsburgh are particularly attractive due to their well-developed infrastructure, skilled labor pool, and incentives for technology companies.
- Lower Competition: Compared to markets like Northern Virginia and Dallas, these regions offer a less congested data center landscape, making it easier for new entrants to establish operations.
- Reliable Energy Supply: Pennsylvania’s strong electrical grid and access to nuclear and hydroelectric power provide an advantage in managing high-density computing loads. Similarly, North and South Carolina offer access to a growing renewable energy market.
- Strategic Connectivity: These areas serve as connectivity bridges between major East Coast data hubs, providing low-latency connections for enterprises requiring fast data transfers.
Midwest (Nebraska, Ohio, Wisconsin)
The Midwest is witnessing a surge in data center investments, with states like Nebraska, Ohio, and Wisconsin attracting major players such as Microsoft and Google. The region’s combination of affordable land, favorable climate conditions for cooling, and business-friendly tax incentives make it an appealing choice for data center expansion.
- Nebraska: Google’s $600 million data center project in Lincoln is one of the largest in the state, reinforcing Nebraska’s role as a growing data center market. The state offers low electricity costs, minimal natural disaster risks, and a growing tech sector.
- Ohio: Columbus has positioned itself as a regional data center hub, with major hyperscale projects benefiting from competitive tax breaks and proximity to large enterprise clients.
- Wisconsin: Microsoft’s $1 billion data center campus in Mount Pleasant demonstrates the region’s potential as a strategic cloud computing hub. The state’s central location and access to skilled labor are key factors driving investment.
As data center operators seek to expand beyond traditional hubs, these emerging markets provide scalable, cost-effective solutions while addressing power and land availability challenges. Commercial property managers in these areas have a unique opportunity to attract data center developments by fostering partnerships with infrastructure providers, streamlining zoning approvals, and investing in local energy solutions.
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As data center construction in the U.S. is growing at an unprecedented rate, with billions in investments and record-breaking projects shaping the future. Commercial property managers must stay ahead of these trends to capitalize on opportunities.
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