Data center growth is shifting toward rural America, including in the Mountain West

The U.S. is experiencing a significant shift in data center development, moving away from traditional urban hubs towards rural areas, particularly within the Mountain West region. The Tahoe Reno Industrial Center in northern Nevada is highlighted as an example of this transformation, becoming a major data center market. According to Aaron Smith of the Pew Research Center's Data Labs team, approximately 1,500 new data centers are in various stages of planning or development nationwide. A notable trend is that nearly 40% of these planned projects are located in counties that currently lack data center infrastructure, contrasting sharply with the 90% of operational data centers currently situated in urban or suburban areas. This expansion is fueled by the escalating demand for artificial intelligence and cloud computing, both of which necessitate substantial energy, water, and physical infrastructure. While new construction is heavily concentrated in the South and Midwest, the Mountain West is also seeing increased activity. However, proposals for these new facilities are encountering community pushback in cities such as Reno, Denver, and Phoenix. Residents and local groups are raising concerns primarily over the high water and energy demands of data centers, alongside potential impacts from noise and air pollution. Pew researchers note that while public awareness of data centers remains relatively low, this is expected to change as more projects are proposed in previously unaffected areas.