• Data center capacity is expanding rapidly.
• The scale of investment is substantial enough to meaningfully support U.S. GDP growth.
• Planned projects would more than double existing capacity across North America, with the U.S. serving as the dominant driver.
• Hyperscale investment is driving the bulk of this activity, rapidly reshaping market dynamics.
• Dallas, Northern Virginia, Reno, Chicago, and Richmond rank as the top five markets for planned power additions.

Today, few topics capture more headlines or attention than the impact of AI and data centers. From multi-billion-dollar investments in platforms, infrastructure, power, and equipment, to the emergence of a new asset class – powered land – the sector’s effect on GDP growth is far-reaching. Harvard economist Jason Furman’s latest research has been making the rounds, noting that investment in information processing equipment and software accounts for 4% of GDP but drove 92% of GDP growth in the first half of the year. Hyperscalers are expanding at a rapid clip, with capex quadrupling to nearly $400 billion, according to Lisa Shallet of Morgan Stanley Wealth Management. 

DatacenterHawk reports that data center capacity, including colocation and hyperscalers is 40.7 GW across North America, with the U.S. as the primary source. Projects in planning could add nearly 50 GW of additional capacity over time. It is important to note that just because a project is planned, it doesn’t mean it will ultimately be commissioned. Vacancy is so low that without new development, there is virtually no room for absorption. Pre-leasing has accounted for almost all absorption in recent years.

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The dominant markets continue to cement their position, although the growth rate in several could cause the rankings to shift. Northern Virginia, the largest market by existing capacity, has the second-most planned power, underscoring its stability. Dallas, the fourth-largest market, leads the way in planned capacity, further bolstering its standing. Reno, currently the 10th-largest market, ranks third for most power in the works, quickly elevating its position on the national scale. Chicago and Richmond round out the top five for planned growth.

While Columbus, Salt Lake City, and Charlotte are currently outside the top 10 by size, they rank seventh, ninth, and 10th, respectively, for potential future gains. Charlotte now ranks 28th by existing capacity, so its growth could significantly change its position. Meanwhile, Northern California, the sixth-largest market, has the 15th-most planned power capacity.

The AI boom is creating investment opportunities from coast to coast. Beyond pure infrastructure plays for data centers, power, and transmission, land values are shifting, private credit is proliferating, and start-ups are taking down office space. Growth among suppliers and support services shouldn’t be overlooked either, though questions about sustainability and long-term power concerns are increasingly part of the conversation.