And there domestic political headwinds as well for the AI industry from a regulatory perspective that I’ve discussed at length. Especially on the AI Power race underneth it all. Not to mention it all expanding into Space as well.
Those two trends are coming together as we approach the end of 2025, and is a key item to focus on for next year and beyond.
Especially understanding WHERE in the US is the AI Data Center land rush actually being established and expanded.
“Nearly 3,000 new data centers are under construction or planned across the U.S., per a new analysis shared first with Axios — adding to the more than 4,000 already in operation.”
“Why it matters: Big tech and many local leaders are full steam ahead on building as many data centers as possible to generate revenue and power the AI boom — but they’re fueling a major political fight, with locals pushing back over energy use and other concerns.”
Although Texas is in the lead, other states are getting their fair share. Keep in mind that a Gigawatt AI Data Center, with over a million AI GPUs (most from Nvidia), runs about $50 billion in investments, and 2-3 years to deploy at a minimum. The big players hope to get that cost down by 20% or so in that time frame but it’s not clear that timeline can be met.
“Driving the news: Virginia leads the country in data centers, with 663 operational and 595 more either under construction or planned.”
“Texas is also up there, with 405 existing data centers and 442 planned or being built.”
“That’s per a new report from the American Edge Project (a pro-tech advocacy group) and the Technology Councils of North America (which represents tech and IT trade organizations).”
“Zoom in: Georgia and Pennsylvania are among the states due for particularly big data center booms, if all goes to plan.”
“Georgia currently has 162 data centers, and is slated for 285 more (a 176% increase, if all are built).”
“Pennsylvania has 98, with 184 more potentially on the way (a 188% increase).”
It’s all getting spread across the 50 states, red and blue, with Power being a key issue:
“Follow the money: “$560 billion in AI-related venture investment has flowed into all 50 states across nearly 27,000 deals from 2019 to the first eight months of 2025,” the groups say.”
“Data centers will generate nearly $27 billion in estimated tax revenue nationwide over the next decade, per the report.”
“Virginia (about $4.2 billion), Arizona ($2.6 billion) and Delaware ($2 billion) are on track for particularly large slices of that pie.”
And it all of course has at least short-term boosts to local economies.
“What they’re saying: “Whether you live in a coastal tech hub, a manufacturing corridor, or a rural community, AI is now a major engine of local jobs, construction, revenue, and long-term economic growth,” AEP CEO Doug Kelly argues in the report.”
“This trillion-dollar build-out is creating new opportunities for electricians, construction workers, engineers, and logistics teams while strengthening tax bases that support schools, roads, police, and other essential services.”
Of course it’s not all being welcomed with open arms:
“The other side: Data center detractors say they cause environmental and energy use problems, quality of life issues for surrounding neighborhoods, and relatively little permanent job creation given the huge investments and big tax breaks often involved.”
“Data centers are the largest development issue of our generation,” Angie McCarthy, Maryland’s state conservation advocate at environmental group Nature Forward, recently told Axios’ Mimi Montgomery.”
“There’s also the question of what’ll happen to all these new data centers if the AI boom turns out to be a bust.”
“What we’re watching: Whether these forecasts hold true as the AI industry’s bubble-or-no-bubble tension plays out.”
“Democrats are zeroing in on voter frustrations around electricity bill spikes as data centers become an opening to hit back at President Trump’s AI policies.”
“Why it matters: The data center scrutiny is in direct contrast to the Trump administration, which is aligned with industry in its eagerness to start construction in the U.S.”
And it’s a great topic for politicians to get media attention:
“Driving the news: Sen. Bernie Sanders (I-Vt.), who caucuses with Democrats, on Tuesday called for a “moratorium” on data center construction.”
“Trump allies on the Hill used the same language in their push for a “moratorium” this year to stop states from regulating AI.”
“Sanders said in a video that new data center construction should be paused to “give democracy a chance to catch up with the transformative changes that we are witnessing, and make sure that the benefits of these technologies work for all of us, not just the wealthiest people on earth.”
“Sen. Elizabeth Warren (D-Mass.) this week launched an investigation into Google, Amazon and Meta’s “energy-guzzling data centers” and “opaque agreements with utility companies” that leave consumers “holding the bill for these trillion-dollar companies.”
“Sens. Chris Van Hollen (D-Md.) and Richard Blumenthal (D-Conn.) co-signed the letter, which was also sent to Microsoft, CoreWeave, Digital Realty and Equinix, demanding answers on construction details, utility cost impacts and more by Jan. 12.”
“Sen. Adam Schiff (D-Calif.) is also eyeing legislation to protect consumers from data center-driven rate increases.”
“The intrigue: The Trump administration is threading a needle that may not work with voters— backing industry dreams of a rapid build-out of data centers while while pitching it as a win for everyday Americans.”
“Energy Secretary Chris Wright has said the administration’s efforts to boost AI research will make people’s lives better and bring down electricity prices that have that “infuriated American citizens.”
“Outside the Beltway, some Republicans are more clear-eyed on the potential political pitfalls of backing data center construction and are making plans to restrict them, like Florida Gov. Ron DeSantis.”
“The bottom line: Democrats are testing whether data centers can become a political liability for Trump, and a way to bring their affordability message to the AI debate.”
AI Data Centers and the race to Power them remains one of the critical gauntlets in this AI Tech Wave.
Trillions are at stake for the US and China, especially given the geopolitical framing currently in vogue. So expect it all to be front and center in the news through 2026 and beyond. Stay tuned.
(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)
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