Data center growth shifts toward rural America, including the Mountain West, report finds

Data center growth shifts toward rural America, including the Mountain West, report finds

News ClipWyoming Public Media·Reno, Washoe County, NV·4/28/2026

A new report indicates a shift in data center growth towards rural areas, particularly in the Mountain West, driven by AI and cloud computing demands. This expansion is leading to increased concerns in communities like Reno, Denver, and Phoenix regarding water and energy use, and potential noise and air pollution. Public awareness of these impacts is expected to rise as more projects are proposed in new areas.

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A new report highlights a significant shift in data center development across the United States, moving away from traditional urban hubs towards rural areas, with the Mountain West emerging as a key growth region. This expansion is largely fueled by the surging demand for artificial intelligence and cloud computing, which require substantial energy, water, and physical infrastructure. The Pew Research Center estimates approximately 1,500 additional data centers are in planning or development nationwide, with nearly 40% slated for counties currently without such facilities, marking a departure from the historical concentration of 90% of operational data centers in urban or suburban locales. Aaron Smith, who leads Pew's Data Labs team, noted this evolving landscape. While existing facilities in the Mountain West are concentrated in states like Arizona, Nevada, Colorado, and Utah, with others in Wyoming, Montana, New Mexico, and Idaho, new national construction is heavily focused on the South and Midwest, including Virginia and Texas. Nevertheless, the trend is taking root in the Mountain West. Communities such as Reno, Nevada; Denver, Colorado; and Phoenix, Arizona, are beginning to experience pushback against proposed data centers. Residents' concerns primarily revolve around the immense water and energy consumption of these facilities, as well as potential impacts from noise and air pollution. Researchers anticipate that public awareness, which has been relatively low, will grow as more data center projects are proposed in previously unaccustomed areas.