A recent Visual Capitalist Info-graphic displays a fair amount of agglomeration of data centers. Not only does Virginia (!) lead, but many other states (IL, OH, TX, OR) have more data centers than their population or level of economic activity would suggest. The general pattern aligns with Fan and Greenstein's analysis that proximity to customers is important, even if it raises costs due to higher land prices in urban areas. Additionally, data centers' demand for electricity will tend to lead them to states with lower energy prices. The ability to achieve economies of scale also appear to be important, which also would be more expensive in urban areas. Different suppliers locating near to each other suggests that the advantages scale fall on the industry, not just the larger firm. This could be due to a more robust labor market for data center talent.
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