The digital backbone of the United States currently comprises at least 1,329 publicly disclosed data centers. Of these, 1,153 are actively processing data, collectively leveraging 15,479 megawatts (MW) of published IT power, with an additional 134 facilities presently under construction. These figures represent a baseline, as they only encompass publicly available records.
This expansive hardware foundation supports every artificial intelligence model, financial trading system, and software-as-a-service product fueling the modern economy. For investors and developers planning for 2026 and 2027, critical questions revolve around where capacity is constrained, which regions are experiencing growth, and the associated costs of deployment.
The Evolving Cost of Digital Real Estate
Across North America, the average monthly cost for wholesale colocation now stands at $196 per kilowatt (kW), reflecting a 6.5% increase over the past year, according to data from CBRE. This average, however, masks considerable regional differences.
- Northern Virginia's Ashburn, recognized as the world's largest data center cluster, maintains a comparatively lower rate of $173/kW, seeing only a 1.5% rise. This stability is largely attributed to its immense scale, which helps moderate prices despite high demand.
- In contrast, Silicon Valley commands a higher premium at $238/kW.
- Globally, Singapore leads with $403/kW, a figure influenced by years of stringent restrictions on new construction projects.
Chicago has emerged as a particularly dynamic market, experiencing a 14.7% surge in rates to $215/kW. This rapid escalation, the fastest among major U.S. markets, suggests that data center supply in the Midwest is being absorbed more quickly than new facilities can be brought online. Businesses considering colocation agreements in the Chicago area this year are advised to carefully review contractual terms.
Powering the Future: Regional Energy Differences
Electricity represents the other significant component of data center operational expenses. Texas offers some of the most competitive commercial power rates for intensive AI workloads, averaging approximately $0.085/kWh. Virginia’s rates are slightly higher at around $0.117/kWh, though a new Dominion GS-5 rate class for loads exceeding 25MW is set to alter billing for the largest tenants starting in January 2027.
When compared to European markets, the cost disparity becomes even clearer. The United Kingdom faces rates around $0.454/kWh, and Germany at $0.269/kWh. These stark differences largely explain why significant hyperscale investments from Europe continue to flow into the American South and Southwest, seeking more economical operational environments.
Massive Projects Reshape the Landscape
The 134 data center projects currently under construction are not evenly dispersed across the nation, with Texas securing a dominant share of these developments. Notable undertakings include:
- Under the "Stargate" initiative, Crusoe is establishing a 1,200 MW campus in Abilene, alongside a 1,000 MW Crusoe-Lancium campus in Childress.
- A 900 MW Microsoft-affiliated site is also emerging in Abilene.
- Further substantial projects include xAI’s facility in Southaven, Mississippi; Meta’s 5,000 MW campus in Richland Parish, Louisiana; OpenAI’s announced 3,210 MW campus in Effingham County, Georgia; and Google’s 2,700 MW expansion in Cheyenne, Wyoming.
These projects are monumental in scale, more akin to significant public infrastructure developments than typical commercial leases. For infrastructure investors and real estate professionals, the critical realization is that securing land with direct access to robust grid power has become the scarcest resource. While fiber connectivity, advanced chips, and capital remain accessible, a reliable substation connection is increasingly difficult to secure.
New York's Limited Data Center Expansion
New York State currently operates 37 data centers, supplying 104 MW of published IT power, but notably has no new facilities under construction. Wholesale colocation in the Tri-State area stands at $213/kW, surpassing the national average of $196. The confluence of high operational costs, limited available land, and existing grid constraints has largely sidelined New York from the current buildout surge. Consequently, compute resources are being established in states like Virginia, Texas, and Ohio, while the financial and legal support services surrounding these operations continue to thrive in Manhattan.
The Outlook for 2026 and Beyond
Artem Bukhkalov, founder of Coloprice, the firm that compiled the underlying data, indicates that current demand is significantly outpacing the capacity of both the existing power grid and the construction pipeline. This means available space is occupied almost immediately upon becoming available.
- For developers of AI products, this suggests that access to GPU resources will likely remain constrained, leading to actual inference costs potentially exceeding published model pricing due to capacity rationing.
- Fund managers may increasingly view powered land and sites with strong grid connections as strategic holdings rather than mere commodities.
- In the real estate sector, this shift is already evident on the ground: agricultural land across rural Texas, the Carolinas, and the Ohio Valley is now being valued based on its megawatt potential and proximity to substation infrastructure.
The geographical distribution of computing power is undergoing a profound transformation. States capable of delivering both power and land resources today are strategically positioning themselves to capture the lion's share of digital infrastructure development over the next decade.
This article is a rewritten summary based on publicly available reporting. For the original story, visit the source.
Source: The Tech Buzz - Latest Articles
