Largest data centers in the US: the top 10 questions on data centers answered

1. What are data centers? 

The basic concept of the ‘data center’ dates to the 1950s. The large mainframe computers of the time required a controlled environment in which to operate, with plenty of physical space, a reliable electrical power supply, efficient cooling and effective security. 

During the 1980s, ‘microcomputers’ became small enough to house almost anywhere. However, the rise of inexpensive networking equipment led to many businesses and organizations putting computer servers in dedicated rooms to improve security and efficiency. 

From the second half of the 1990s, the rapid rise of the internet created a demand for bigger, more complex facilities dedicated to storing and managing the increasing amounts of data used by businesses — the data center as we now know it was born. 

2. What are they used for? 

Data centers fulfil multiple roles within wider IT infrastructure, including: 

• Data storage: Acting as a ‘data warehouse’ for large amounts of digital information 

• Data processing: Providing the computational power needed to process and analyze data 

• Connectivity: Hosting networking infrastructure to link servers, devices and users 

• Security and compliance: Safeguarding sensitive data from unauthorized access  

• Disaster recovery and business continuity: Acting as backup and replication resources 

3. How do data centers work?

At the core of a data center are racks of servers — high-powered computers that manage the data, processing, storing and distributing it as required. To do this, servers are connected to other components including hard drives for data storage and networking equipment such as routers and switches, as well as a reliable power supply.  

Servers generate a lot of heat, so cooling systems are also a key element of data center design. Finally, a combination of physical security (via locks, cameras, etc.) and network security (firewalls, intrusion detection) protects the data. 

4. Who are the key players in the US data center market? 

Booming data centre build-out is a key driver of resurgent US power demand. US data centers are run by two main types of business:  

• Colocation and interconnection providers: Specialist data center companies providing services to other businesses include Digital Realty Trust, Equinix, 365 Data Centers, QTS Realty Trust, DataBank, CyrusOne, Cologix, Flexential, CoreSite and Iron Mountain 

• Hyperscale operators: Large tech companies operating massive data centers both for themselves and for large enterprise clients include Amazon Web Services (AWS), Microsoft (Azure), Google, Meta, Apple, Oracle and IBM 

5. What are the largest data centers in the US? 

At the time of writing the biggest data center so far announced in the US is Vantage Data Centers’ US$25 billion Frontier facility in Texas, scheduled to start operations in H2 2026. However, with ever more ambitious projects being planned, the holder of the title ‘largest data center in the US’ is changing all the time. 

6. What factors influence data center location? 

In theory, data centers can be built almost anywhere. However, several key factors tend to make some locations more popular than others: 

• Power: Data centers require access to a large, reliable, cost-effective source of electricity; despite intermittency issues, many operators prefer renewables to reduce their carbon footprint 

• Connectivity: Efficient fiber-optic cable infrastructure is essential to connect customers to services 

• Proximity: Locating a data center close to customers minimizes latency, i.e., the delay caused by the time it takes data to travel from one place to another 

• Environmental conditions: Lower temperature environments are preferable to reduce cooling loads, while water is increasingly used instead of air for the actual cooling; vulnerability to extreme weather events and natural disasters can also be a concern 

• Local regulation and support: Local zoning, permitting and environmental regulations can have a strong influence on the choice of location — as can community support or opposition 

7. Where are most US data centers located? 

Currently, the primary markets for data centers in the US include Northern Viriginia, Phoenix, Dallas, Chicago, Portland and Eastern Oregon, and Silicon Valley in Northern California. However, as the ability to secure interconnection to an appropriate energy supply becomes a key constraint, projects are moving into new markets such as Pennsylvania, Ohio, Indiana and Iowa. 

8. What technologies are shaping data centers? 

Since the 2010s, the rise of cloud computing and crypto mining have driven increased demand for large-scale, ‘standalone’ data centers operated by third-party providers. More recently, the commercialization of generative AI has accelerated data center demand — a trend that is expected to continue.  

As generative AI moves rapidly from text-based tasks activities to more complex tasks such as the manipulation of images, sound and video, the processing power required is multiplied. As a result, the latest generation of AI-enabled servers require liquid cooling systems, which are far more efficient than air cooling. 

9. Why are sustainability and efficiency important for data centers? 

Data centers require significant amounts of electricity, both to power servers and for the cooling systems that prevent them from overheating. Most hyperscale data center operators such as Google and Meta — as well as many clients of third-party data center providers — have clear strategies and targets relating to reducing their carbon footprint.  

Energy efficiency is therefore an important factor in data center design and operation, not just from a financial perspective but to improve sustainability. A simple metric known as power usage effectiveness (PUE) — calculated as the ratio of total facility energy to IT equipment energy used — is widely employed to assess data center efficiency. 

Less well known is the fact that data centers use huge quantities of water, which for large facilities can amount to millions of gallons per day. Traditional air cooling uses water evaporation to cool the air and maintain optimum operating temperatures in a water-intensive, open-loop system. In contrast, direct-to-chip and immersive liquid cooling employ closed-loop systems that are far more water efficient. 

10. How is the US data center market expected to grow? 

As of June 2025, Wood Mackenzie was tracking 134 gigawatts (GW) of proposed data centers in the US, up from 50 GW a year previously. However, from this US data center pipeline, only 63 GW had firm commitments from utilities to supply power.  

Having been flat for decades, the sudden surge in electricity demand has caught US utilities and grid operators off guard, presenting a major challenge in terms of upgrading grids and building out generating capacity. The ability to secure suitable sources of power is therefore likely to be a major factor in how quickly the US data center market actually grows.