Whether I’m talking to data center operators or real estate developers, a common question is: “What’s the next big market?”
It’s a great question because the major data center markets of the past aren’t guaranteed anything. Only a dozen years ago, the New York City area was the go-to location for data centers. Four years later, Loudoun County, Virginia, overtook NYC as the place for data centers to be, and Northern Virginia has been at the forefront ever since. Now it’s reached the point where parts of the region are approaching maximum capacity. Even in the southern reaches of the area, electrical transmission constraints are possible.
The power constraint story is playing out across the developed world. From Silicon Valley to Dallas and Chicago to Ireland, the electrical transmission infrastructure (and its regulation) is not built for rapid growth. Electricity access will be the driving factor over the next five to ten years.
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ABOUT THE AUTHOR
David Zorn advises businesses, trade associations, and governments on the community impacts of critical infrastructure. Previously, he spent over 20 years at the US Food and Drug Administration working on food safety, nutrition, risk assessment, and public health, ultimately serving as Director of Social Sciences. He has published papers on food safety, risk assessment, and data quality. He earned a PhD in Economics from George Mason University.
