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Data center development shows no signs of slowing down and is actually accelerating, with an estimated $2.48 trillion in investment in the next three years alone. Q2 capex in data center development was up 22% over last year, hitting $49.3 billion.
Atlanta, northern Virginia, and Dallas-Fort Worth are the leading hubs of investment and build activity, according to commercial real estate firm CBRE. Here is a roundup of the latest news on the nationwide data center construction boom.
Q2 Data Center Capex Surges 22% to $49.3B
Capex on data center construction for the second quarter of 2026 hit $49.3 billion, a 22% increase from $40.4 billion in the year-ago quarter, based on figures from the Bureau of Economic Analysis, part of the U.S. Department of Commerce.
According to Industrial Info Resources, the Q2 actual spend is “only a fraction” of what developers and big tech companies plan to invest by the end of 2028 to fuel the insatiable appetite for compute power to drive AI.
IIR estimates that 2,441 data center projects are in the works during that period, representing a whopping $2.48 trillion in investments, more than the GDP of Australia, Mexico, or Spain.
Roughly a quarter of this investment is coming from four “hyperscalers” — Google parent Alphabet, Amazon, Meta, and Microsoft — that plan to build 548 U.S. data centers valued at $513 billion, according to IIR.
Alphabet Looking at New Mexico for Data Center Project
Alphabet is exploring a new data center development in Lea County, New Mexico, which sits in the southeast corner of the state on the Texas border. While no details were announced, the company said it is being proactive in reaching out to the community.
“While discussions are ongoing, we recognize residents are asking questions about data center development, so we want to be transparent and start our conversation with the community early,” Alphabet said in a statement. This includes responsible water management, paying for 100% of the electricity used, and being “active members of the community.”
According to Data Center Dynamics, New Mexico is a relatively small data center market compared to neighboring Arizona and Texas. Companies with facilities in the state, mostly in the Albuquerque area, include Stack, Meta, Csquare, and H5.
CBRE: Atlanta the “Epicenter” of Data Center Builds
While other states and metro areas are going in the opposite direction, Georgia and Atlanta in particular have emerged as leading centers of data center development. According to a report from CBRE, metro Atlanta has surpassed northern Virginia as the top market for domestic data center investment.
“Atlanta’s under-construction capacity surged by 52.3% year-over-year to 2,882 (megawatts),” CBRE said in the report. “Georgia remains one of the nation’s most attractive markets for AI, hyperscale cloud and enterprise data center development, even amid ongoing entitlement and power delivery challenges.”
The report continued that Georgia “continues to offer a highly competitive business environment relative to many primary data center markets, supported by favorable tax incentives, available construction labor, a mature supply chain and lower operating costs.”
Northern Virginia still leads in terms of percentage of total primary market inventory for data center development, according to CBRE, at 41%, followed by metro Atlanta at 17% and Dallas-Fort Worth at 17%.
3.3gw Oklahoma Data Center Project Proposed
An investment group is looking to build a 3.3gw data center site in Enid, Oklahoma, about 100 miles north of Oklahoma City. It would power artificial intelligence, cloud computing, banking, and national security, as well as possibly backup power and secure fiber connections to Vance Air Force Base.
“We spent a lot of time investing and making sure we understand how this can be done right,” said Jason Singer, one of four principals in Plainsman Holdings. “In fact, we want this to be a national model for how you can invite and build a data center in your community.”
Project Thunderbird, which is looking at a five- to seven-year build timeline, would cover 1,735 acres and require up to 3.3gw of power. The plan calls for self-generated power using locally sourced natural gas, instead of relying on the grid. The group said Enid’s water infrastructure can handle the project’s needs, based on a recently completed $350 million municipal pipeline project.
Two Data Center Projects Coming to West Virginia
Two data center projects in Mason County have been approved and certified by the West Virginia Department of Commerce. They include a 2.16gw, $12 billion complex financed by Starwood Capital Ventures that will run off the local grid, and a separate project 20 miles away that will be powered by a natural gas plant and hundreds of onsite gas generators.
Anthony Balestieri, Starwood Digital Ventures CEO, lauded House Bill 2014, a 2025 law that incentivizes data center development in West Virginia and attracted Starwood to the state. Balestieri said West Virginia is “at the forefront of defining a clear set of standards for responsible development.”
Supporting the Data Center Build Phenomenon
Despite pockets of resistance, data center development is surging ahead to power unprecedented AI growth, compute power requirements, and cloud capacity. Developers are now looking to proactively address resident concerns about power and water use, including by proposing off-the-grid complexes that run on self-generated power from onsite natural gas plants.
Blue Ribbon Fastener, supplier to major aerospace concerns and data center developers, is supporting this demand through sourcing expertise, immediate quotes, and the ability to fulfill large-volume orders. This includes projects that require hundreds of pallets of structural bolts and structural fasteners, within rigid delivery windows.
Whether you’re looking for a full-blown vendor-managed inventory partnership or a stocking agreement, BRF has you covered. When schedules call for dependable hardware availability, BRF helps customers secure the fasteners needed to keep complex construction projects moving. Get a super fast quote here.