Atlanta now leads North America in data center construction, report says
Atlanta has emerged as North America's leading market for data center construction, with more projects underway than any other primary U.S. market, according to a CBRE report. Despite Georgia's attractive business environment and incentives, the region faces ongoing challenges with project approvals and securing sufficient power for new developments.
A new report from CBRE research indicates that Atlanta, Georgia, now leads all primary North American data center markets in construction activity, with 2,882 megawatts of data center capacity currently under construction. This surge in development positions Atlanta as a major hub, although Northern Virginia still holds the largest existing data center inventory in the country.
Georgia's attractive business environment, favorable tax incentives, skilled construction workforce, robust supply chain, and lower operating costs are cited as key drivers for this growth, particularly in response to increasing demand from artificial intelligence and cloud computing. CBRE notes the state's appeal for hyperscale cloud and enterprise data center development.
However, the rapid expansion is not without its difficulties. The report highlights persistent challenges in Atlanta and throughout Georgia concerning project approvals and the timely delivery of adequate power to new data center sites. Developers are increasingly exploring large-scale campuses in South Georgia and other rural areas, driven by better access to electricity transmission, load-balancing needs, and potentially fewer entitlement hurdles. The industry is also focused on expediting power acquisition and project timelines.
As the need for computing power continues its upward trajectory, the CBRE report suggests that Georgia is well-positioned to maintain its status as a significant destination for data center investment.