The Rural Revolution is Coming as Generative AI Drives Hyperscale Data Centers

Generative AI is set to be a game-changer for the hyperscale data center landscape, prompting companies to build in new areas and benefiting rural America in the process. Data center companies have historically built hubs in urban areas for access to power and water, deeply integrated fiber networks, and proximity to Fortune 500 companies and government agencies. However, the processing dynamics of generative AI and the enormous power requirements of AI models are turning that model on its head. Data center operators recognize that moving gigabits of data is easier than moving electrons and are locating where land is available and the path to meet their power needs is clear. Initially they are targeting secondary markets in areas of Ohio, Mississippi, Utah and other states. Over time, we expect new data centers will be built outside of secondary markets and deeper into rural America.