LandGate Releases Q1 2025 Data Centers Report Highlighting Industry Growth and Emerging Trends

NEW YORK, May 15, 2025 /PRNewswire/ -- LandGate, a leading data analytics platform in the real estate and energy sectors, has released its Q1 2025 Data Center Activity Report, offering an in-depth analysis of the shifting landscape in U.S. data center development. The report provides critical insights into the growth of the data center industry fueled by artificial intelligence (AI), cloud computing, and hyperscale infrastructure, as well as the challenges presented by rising energy demands and new market trends.

The U.S. data center industry experienced significant growth throughout Q1 2025, largely driven by the increasing adoption of AI-powered applications and cloud-based services. This expansion has heightened energy consumption, with U.S. data centers now projected to use more than 200 terawatt-hours (TWh) of electricity by the end of this quarter, further intensifying the need for sustainable and reliable energy solutions.

According to LandGate's analysis, evolving market dynamics are reshaping the criteria for data center site selection. Developers are moving beyond traditional hubs like Northern Virginia and Silicon Valley into emerging regions such as Georgia, Indiana, Texas, and Ohio, where they can benefit from more affordable land, tax incentives, and robust power infrastructure. Leading examples include Meta's $800 million investment in Indiana and AWS's $3.5 billion expansion in Ohio.

The report also highlights the growing adoption of renewable energy and innovative energy solutions, such as solar power integration, small modular reactors (SMRs), and green hydrogen. These alternatives aim to address power challenges amplified by next-generation data centers, which now require 100 MW of capacity or more to meet the demands of AI and cloud technologies.

Key Findings Include:

• The expansion of data centers has significantly boosted the economy, creating 4 million jobs and contributing an estimated $700 billion to the U.S. GDP.
• Data centers consumed an estimated 200 terawatt-hours (TWh) of electricity in Q1 2025.
• Rising land costs and infrastructure limits in hubs like Northern Virginia and Silicon Valley are pushing developers to explore secondary markets like Indiana, Ohio, Texas, and Georgia.
• New data centers need up to 100 MW of power per site, with developers focusing on land near renewable energy, natural gas pipelines, and nuclear plants for reliable supply.

Download the full report here.

About LandGate

LandGate is the leading provider of data solutions for site selection, origination, development, financing, and market analysis of US renewable energy and infrastructure projects: solar, data centers, EV's, energy storage, wind, carbon, and CCS.

SOURCE LandGate