Key Takeaways
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- Northern Virginia, within the Washington, D.C. market, leads in active data center development, with nearly 6 million square feet currently being built.
- Atlanta and Phoenix are hot on its heels, with 5.2 million and 4.9 million square feet underway, respectively. Here, developers are cashing in on tax breaks and cheaper energy compared to coastal regions
- The Midwest is gaining traction, too: From 2015 to 2024, Columbus, Ohio, added 6.1 million square feet and Des Moines, Iowa, increased by 5.6 million, thanks to reliable power grids and affordable land. Only Northern Virginia and Dallas have built more.
- The $709 million Cloud Plaza sale in Ashburn, Va., marks the decade’s largest single-asset data center deal.
Demand for cloud services, AI infrastructure and hyperscale computing has skyrocketed, sparking a major expansion in U.S. data center construction in the last year. Notably, Northern Virgina (NoVa) – the core of the D.C. market’s data center scene – remains key. Meanwhile, newer markets — like Atlanta, Phoenix and Dallas — are gaining ground fast, attracting billions in investment with lower costs, plentiful power and tempting policy incentives.
To get a handle on this growth, we dug into the 94 largest U.S. data center markets by zeroing in on four main areas — active construction pipelines, inventory growth from 2015 to 2024, a decade of investment trends and the largest deals of the last 10 years.
Keep reading to explore the top U.S. markets with the most data center space on the way or skip ahead to see the sales leaders and the biggest data center deals of the decade.
Northern Virginia Leads the 2025 Construction Race, But Atlanta & Phoenix Accelerate to Narrow the Gap
In the Northern Virginia corridor (part of the Washington, D.C. - suburban Maryland market), nearly 6 million square feet of data center space is under construction — the nation’s largest pipeline. More precisely, in the “Data Center Alley” in Ashburn, Va., nine of 14 active projects are underway, including Stack’s flagship 1-million-square-foot hub. Plus, with more than 200 data centers already operating, this market’s inventory dwarfs others by twofold. But, the local grid is strained and space is running low, which is pushing developers into nearby counties, such as Fredericksburg and Springfield. And, while Dominion Energy is adding new transmission lines, the region’s growth still struggles to match national demand.
Atlanta isn’t far behind, with more than 5 million square feet under development across 14 projects, accounting for a 63% increase in total inventory once completed. Developers are building bigger, more advanced facilities than the current average, thanks to plenty of available land and a supportive local government. In this case, tax incentives and light regulations have drawn heavyweights like Microsoft and QTS, each advancing multiple projects. Although this boom pressures the power grid, planned renewable energy from Vogtle should help stabilize supply. In fact, in 2024, Atlanta even surpassed Northern Virginia as the top U.S. market for data center absorption, according to CBRE.
Out west, Phoenix is another key market benefiting from the rapid expansion of data center space outside of Northern Virginia. Nearly 5 million square feet of data center space are currently under development, which could increase the market’s total inventory by as much as 57% upon completion. Leading this growth are hyperscalers — large technology companies like Meta and Vantage, known for constructing large, power-intensive facilities. Meta is developing a 1.5-million-square-foot project in Mesa, while Vantage is adding 800,000 square feet in Goodyear. Here, low operating costs, a dry climate for efficient cooling and proximity to West Coast hubs fuel its appeal. Moreover, to tackle water scarcity, closed-loop systems now cut usage by 95%.
In Dallas-Fort Worth, 3 million square feet is under construction across 14 projects. In particular, Compass Datacenters is developing four custom facilities in Red Oak, DataBank is adding three colocation hubs, and QTS is meeting hyperscale needs with campuses in Irving and Fort Worth. It’s worth noting here that the metroplex benefits from tax incentives, affordable land and strong latency for national operations, in addition to proximity to Mexico for cross-border enterprise routes.
Next, Columbus, Ohio, leads the Midwest with 2.84 million square feet underway. Built along old railroad routes, Ohio’s fiber optic network delivers high-speed connectivity with reduced latency to Northern Virginia. Furthermore, because it’s within 750 miles of more than half of the U.S. population, Columbus offers wide reach. And, the $20 billion Intel campus in New Albany is set to spur more digital infrastructure growth, joining players like Meta and Amazon. Here again, affordable land and stable energy costs make it a standout.t.
Other emerging markets are also gaining traction: Omaha, Neb., is adding about 2.2 million square feet, driven by Google’s campus expansion and access to cheap power and fiber corridors. Similarly, Reno, Nev., is launching twin projects totaling 2.17 million square feet (nearly 60% of its stock) thanks to Nevada’s renewable energy and hefty tax breaks. Not far behind, Salt Lake City is building around 2 million square feet, anchored by Meta’s Eagle Mountain campus and strong local support.
Chicago, the nation’s third-largest data center market, has regained momentum over the past year, with growth continuing into 2025. Prime Data Centers’ $1 billion investment in Elk Grove Village marks a key milestone. Rounding out the top 10, Des Moines continues its recent rapid expansion, while Jackson, Mississippi, is poised for sudden growth with Amazon’s $10 billion plan for two data centers in Canton and Madison County.
At the same time, Chicago — the nation’s third-largest data center market — has regained momentum throughout the last year with growth continuing into 2025. Specifically, Prime Data Centers’ $1 billion investment in Elk Grove Village marks a key milestone. Then, closing out the top 10, Des Moines, Iowa, continues its recent rapid expansion, while Jackson, Miss., is poised for sudden growth with Amazon’s $10 billion plan for two data centers in the city of Canton, as well as in Madison County.
2015-2024: Columbus, Ohio, Adds 6.1MSF; Des Moines, Iowa, Goes Up 5.6MSF as Northern Virginia More Than Doubles Output
From 2015 to 2024, affordable land, robust energy infrastructure, and fewer regulations helped Midwest markets like Columbus, Ohio, and Des Moines, Iowa, outpace many more traditional hubs. Yet, even as hyperscalers drove growth in these emerging markets, Northern Virgina benefited from East Coast latency demand and established infrastructure.
As a matter of fact, Northern Virgina not only maintained its position as the largest data center market in the country — it pulled far ahead. Throughout the decade, it added 19.35 million square feet of new data centers to triple the output of any other market. For example, 10 years ago, NoVa was only 3 million square feet ahead of New Jersey. Now, it’s twice the size of second-place Dallas. More precisely, Northern Virginia’s best year was 2019, when it added 4.18 million square feet. That year, 12 data centers were completed, including 22262 Cloud Plaza — the most expensive single asset data center of the decade.
Next, Dallas secured second place by adding 6.17 million square feet, propelled by an early surge that peaked at 3.3 million square feet in 2016. This momentum allowed Dallas to overtake New Jersey, which gradually lost favor as investor attention shifted.
That said, the Midwest saw the most dramatic acceleration: Columbus, Ohio, jumped from 25th place into the top 10 by adding 6.1 million square feet — thanks, in part, to major expansions of 1.16 million square feet in 2015 and 2.24 million square feet in 2023. Similarly, Des Moines, Iowa, vaulted into the top 10 with 5.6 million square feet, largely driven by Meta’s 4.1-million-square-foot campus in 2015 that was built in Altoona, Iowa.
Rounding out the podium, Chicago finished the decade in third place by adding 5.2 million square feet with nearly half of that growth occurring in 2023. Omaha, Neb., wasn’t far behind after delivering 4.16 million square feet, including a 2.64-million-square-foot peak in 2019, again driven by Meta-led initiatives.
Out west, the Bay Area in California ranked seventh with 3.38 million square feet added, buoyed by a 1-million-square-foot surge in 2024. Phoenix also experienced steady growth, adding 2.71 million square feet evenly throughout the decade, while Salt Lake City broke into the top 10 with a 2.7-million-square-foot megaproject in 2021.
Finally, Richmond, Va., capitalized on spillover demand from Northern Virginia’s land crunch, adding 2.5 million square feet with notable increases in 2020 and 2023.
Northern Virginia’s $3.26B Decade of Sales Dominance
From 2015 to 2024, the U.S. data center market recorded $10.83 billion in sales across 62 markets, covering 41.66 million square feet in more than 300 transactions. Now, hyperscalers like Meta focus on building custom, AI-driven facilities for long-term use, rarely selling them. Accordingly, this shift has boosted colocation providers, which lease space to industries such as finance and health care that drive most sales activity.
Once again, Northern Virginia led with $3.26 billion in sales across 40 deals to account for 30.1% of U.S. volume despite claiming only 13% of transactions. Its proximity to Washington, D.C. and role as an internet hub make it a colocation powerhouse for immediate needs.
Other markets stood out, too. For instance, Dallas, Atlanta and Phoenix saw robust sales from scalable demand. And Houston, tapping its energy resources, posted $765.8 million in just seven deals, including three of the decade’s top 20 property sales. At the same time, Los Angeles, with sub-sea cables to Asia cutting latency, hit $651.5 million across seven transactions. Lastly, the Bay Area, New Jersey, and Chicago also delivered strong results, fueled by tech, finance and connectivity strengths.
Cloud Plaza’s $709M Sale: Northern Virginia Lands Decade’s Largest Deal
As you might expect, Northern Virginia has played a central role, hosting eight of the top 20 data center deals since 2015, including the decade’s biggest single-asset sale: In 2022, GI Partners snapped up 22262 Cloud Plaza in the Dulles Corridor for $709 million. The 238,000-square-foot facility is fully leased to hyperscale tenants.
Nearby, Quantum Park exhibits the area’s brisk pace, changing hands three times in six years. First, American Real Estate Partners bought it for $131.9 million in 2015. Then, AGC Equity Partners followed with a $193 million purchase in 2016 before DigitalBridge sealed a roughly $300 million deal in 2021 to make it the decade’s third-largest single-asset buy.
Beyond Northern Virginia, other regions are also grabbing attention. Namely, New Jersey leans on high-value acquisitions over new builds. Specifically, Iron Mountain acquired 3003 Woodbridge Ave. in 2016 for $310 million to claim the decade’s second-highest deal. More recently, Brookfield picked up 300 John F. Kennedy Blvd. for $217 million in 2024.
In the south, Houston has also made waves. In 2022, Manulife closed a $565 million portfolio deal across three data centers with Houston West III fetching $262 million — the decade’s fourth-largest transaction.
On the West Coast, GI Partners nabbed 12800 Culver Blvd. in Los Angeles for $211 million in 2023. This acquisition adds to its portfolio, which includes three of the decade’s top 20 sales — two in Northern Virginia and one in LA — highlighting the company’s multi-asset approach.
Methodology
This report uses Washington, D.C.-suburban Maryland as the formal market name, which includes areas like Springfield, Va. Northern Virginia is referenced for its industry prominence as the world’s largest data center cluster.
- The analysis focuses on data center properties using information from CommercialEdge, specifically assets classified under the primary use sub-type “data center.”
- Properties included are 25,000 square feet or larger and were completed between January 1, 2015, and December 31, 2024.
- Sales data covers the same period (2015 through 2024). Portfolio transactions were excluded, although individual sales within larger portfolios may be included.
- If a property changed hands multiple times throughout the decade, all transactions were factored into the analysis.
- Property data was extracted on January 23, 2025, and sales data on January 21, 2025.
