By Kevin Bradley
Artificial intelligence is fueling rapid growth and innovation across industries, creating both opportunities and challenges at every turn. Data centers is among the most recent industries to go all in on AI-powered infrastructure, with major players, such as Microsoft and Amazon, announcing plans to expand AI data center developments. A recent McKinsey study suggests demand for AI-ready data center capacity will rise at an average rate of 33% per year between 2023 and 2030.
As these developments continue to grow in size, complexity, and price, a lingering question remains — where are the optimal locations to build these massive infrastructure developments? The answer may be surprising.
For AI data centers to functionally operate, there are many elements developers must consider. From adequate energy supply to workforce availability and site readiness, there is one location for these large infrastructure developments that stands out — America’s heartland.
Once overlooked for urban locations with proximity to major cities, rural America is emerging as an ideal location for AI data center infrastructure due to one major factor many other locations don’t provide — scale. These vast, underdeveloped may locations provide developers with ideal conditions required for these massive projects.
Rural America holds three advantages crucial to AI data center infrastructure that alternative areas cannot deliver — abundance of renewable energy required to operate these facilities; an adequate workforce ready to tackle these projects; and minimal zoning restrictions required to build within these locations.
Energy Supply Capabilities: AI models, especially those that train and operate large processes, require extraordinary amounts of energy. According to the International Energy Agency (IEA), electricity demand from data centers worldwide is expected to more than double by 2030 to around 945 terawatt-hours (TWh), the equivalent of Japan’s entire electricity consumption.
AI data centers, in particular, require exceptional levels of energy to meet the needs of their capabilities. Recent research from Goldman Sachs reveals global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade. Given this increased energy demand, developers must place these future AI data centers in locations that can accommodate the massive amounts of energy required to power the infrastructure.
Rural locations offer developers a crucial advantage most regions cannot deliver in the form of abundant renewable energy resources. From large wind farms across the Midwest to solar farms in the South, these regions possess the reliable and clean power sources needed to support the scale of these infrastructure projects.
These developments are also a win-win for both organizations and the communities they occupy. Tax credits and other incentives offered by some states help bring large technology companies to the region and the economic benefits that come with them.
For instance, tax revenues from these developments help fund public services without impacting existing infrastructure like roads or schools. Regions such as Loudoun County in Virginia have seen property values climb more than 70% in the past decade, with data center investments playing a key role in driving growth. Meta’s recent plan to build a $10 billion AI data center in Louisiana serves as a further proof point for the advantages local locations provide developers.
Paired with ample renewable energy resources, rural regions are also increasingly utilizing large-scale battery storage systems. While wind and solar-powered facilities are ideal, in the event of inclement weather, such as clouds or inactivity in wind generation, data center operators may turn to battery-powered energy production to ensure continuous operations. Rural locations have adequate space to construct battery storage systems on these large site locations. In tandem, both renewable energy resources and backup battery storage infrastructure ensure energy is always accessible.
Workforce Availability: When choosing a location for an AI data center, developers must consider the day-to-day operations of these projects upon completion. While many attribute growth to the United States’ GDP to prosperity within urban areas, many underestimate the value provided by rural communities. Recent data from McKinsey revealed rural regions account for one-seventh of the total U.S. population and approximately $2.7 trillion of US GDP (around 10%).
Rural America’s workforce allows these AI data center projects to function properly, ranging from construction crews to facility management. And, data center development in rural areas significantly impacts economic prosperity within these regions. Amazon’s recent $10 billion data center campus in North Carolina is expected to create at least 500 jobs and support thousands more through construction and data center supply chain providers. Data center developments present a substantial level of labor and economic growth for these rural communities.
Site Readiness: One of the most crucial components of site location for developers is how ready the land is to begin construction. Rural sites often come with fewer zoning restrictions and regulatory hurdles due to the immense space provided for these large-scale projects. However, securing land ownership requires developers’ due diligence in establishing clear title insurance and avoiding future roadblocks once these projects are underway.
As most areas throughout rural America offer a simplified title insurance process, developers protect both the timelines of these projects as well as ensure their long-term success by getting the right insurance in order early, significantly bolstering the economic impact within these locations.
How Developers Can Prepare
For developers looking to capitalize on the AI data center boom, there must be an understanding that not all pieces of land are created equal. While rural America generally has fewer zoning regulations, these rules can vary substantially depending on the state and even by municipality.
The key for developers lies in their ability to foresee potential disruptions that can stall or halt these projects, and a critical safeguard is title insurance. Equipping the land with proper title insurance ensures that there are no disputes around ownership or land easements that can significantly disrupt or even entirely derail projects. By proactively addressing land ownership and regulatory factors, developers protect timelines, budgets, and operational efficiency.
What Lies Ahead For AI Data Centers
Rural America represents a pillar for the future of AI data center development. The amount of renewable energy sources, available workforces, and vast land equips these regions with the tools to meet the unprecedented growth of AI data centers. Operators and developers hold the key to the future of data center infrastructure, set to be unlocked across the heartland of America, but it must be done right to protect all parties’ future interests.
Backed by nearly 15 years of experience handling complex real estate transactions, Bradley, Esq. is the CEO and co-founder of Tower Title, the largest title provider in the national cell tower and data center sectors. A contracts and real estate attorney by trade, he has worked exclusively on commercial real estate deals for the past 10 years. Tower Title is based in Providence, Rhode Island.
Works cited in this article
- Business Insider, June 17, 2025, The AI boom’ pits neighbor against neighbor, by Dakin Campbell
- Associated Press, June 4, 2025, Amazon planning $10B investment in North Carolina for data center and AI campus
- Data Center Knowledge, May 21, 2025, U.S. Data Center Tax Incentives: A Special Report, by Jack Vaughan
- Associated Press, December 11, 2024, Meta to build $10 billion AI data center in Louisiana as Elon Musk expands his Tennessee AI facility, by Jack Brook and Adrian Sainz
- CNBC, June 4, 2025, Amazon to invest $10 billion in North Carolina data centers in AI push, by Annie Palmer
- International Energy Agency, April 2025, Energy & AI
- McKinsey, March 20, 2025, Who is Rural America?
- Goldman Sachs, February 4, 2025, AI to drive 165% increase in data center power demand by 2030
- McKinsey, October 29, 2024, AI power: Expanding data center capacity to meet growing demand
- Northern Virginia Technology Council, May 1, 2024, Virginia Data Centers Supported 78,140 Jobs and $31.4 Billion in Economic Output in 2023
