As artificial intelligence (AI) and digital infrastructure drive skyrocketing power demand, choosing the right location for your data center location strategy is more critical than ever. A poor site can cost millions — but with the right data, you can pinpoint the right data center locations with reliable power, low energy costs and scalable, buildable land. This guide walks you through everything you need to know about data centers, data center siting.
AI and data centers often go hand in hand, but a data center is much more than what we usually think. A data center is a dedicated facility used to house computer systems, servers, networking hardware and storage infrastructure for processing, storing and distributing large volumes of data. As businesses and technologies like AI, cloud computing and streaming services expand, the need for reliable, scalable data centers has never been greater.
Data centers vary widely in scale and purpose. Knowing the distinctions helps developers, utilities and grid planners design smarter siting strategies and infrastructure plans.
Data center siting criteria is the process of evaluating and selecting a location to build a data center based on key factors like energy availability, infrastructure land suitability and long-term cost. Whether you’re building a hyperscale data center, enterprise data center or edge data center, data center site selection decisions directly impact performance, uptime and ROI.
At its core, effective data center site selection comes down to finding the optimal balance of three critical elements:
Each of these pillars plays a vital role.
For example, a site with cheap power but no available land or fiber access may stall development. Similarly, a great parcel of land without enough power capacity or a stable power source could lead to downtime and cost overruns.
Where a data center connects to the grid has a direct impact on project costs, reliability and long-term scalability. Poor data center site criteria decisions can lead to expensive transmission upgrades, delayed interconnection or limited access to affordable power.
For data center developers and utilities, aligning siting strategy with grid capacity, infrastructure plans and future demand ensures:
Strategic siting doesn’t just affect individual projects—it shapes regional grid planning, investment decisions and the pace of electrification.
Power isn’t just an operational input, it’s the lifeline of a data center. From the moment a server spins up to every millisecond of uptime guaranteed in an SLA, everything relies on a consistent, high-volume and reliable flow of electricity.
Why Power Matters for a Data Center:
Power availability is critical — but so is how much that power costs. For most data centers, electricity is the largest ongoing operational expense, often representing 25%–60% of total costs. Siting a facility in the wrong location — even by just a few grid nodes — can mean millions of dollars in annual cost differences.
Why Price Matters for Data Centers:
It’s not enough to have reliable and affordable power for data centers — the land itself has to be viable. And in today’s market, good parcels of land go fast. From hyperscaler data centers to land banking investment groups, there’s a race to lock up acreage that checks all the boxes: access to infrastructure, buildability, connectivity and scalability.
Why Land Matters in Data Center Criteria:
10. Las Vegas Core Campus, Nevada
Switch – 495 MW
9. Las Vegas 5, Nevada
Switch – 495 MW
8. Gigafactory, Texas
Tesla – 500 MW
7. Ashburn Campus, Virginia
Vantage Data Centers – 590 MW
6. Quincy Mwh, Washington
Microsoft Azure – 622 MW
5. Dekalb, Illinois
Meta – 673 MW
4. Meta Mesa Data Center, Arizona
Meta – 701 MW
3. Fort Worth, Texas
Meta – 729 MW
2. Prineville, Oregon
Meta – 1,289 MW
1. Altoona, Iowa
Meta – 1,401 MW
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