The number of data centers is increasing
Data centers are the new infrastructure of the 21st century — as vital as roads, rail, and electricity. The digital economy depends on them, and demand shows no sign of slowing down.
Northern Virginia is the largest data center market in the world, constituting 13% of all reported data center operational capacity globally and 25% of capacity in the Americas.
The data center industry is growing rapidly in Virginia, both in established markets and newer ones. Significant new market growth is expected in localities south of Northern Virginia – mainly along the I-95 and I-64 corridors.
There are so many data centers — and so many more planned — because our world is generating and relying on exponentially more data every day. Here’s why:
1. Explosive Growth of Data: We are experiencing an unprecedented volume of digital information — from emails and social media posts to high-resolution video, AI models, medical records, and smart device activity. Global data is projected to reach 181 zettabytes by 2025, up from just 2 zettabytes in 2010 (IDC).
2. Rise of AI, Cloud, and Edge Computing drives demand for more data center space: AI models, like ChatGPT, require massive data storage and computing power. Cloud computing lets businesses scale quickly without building their own infrastructure. Edge computing puts smaller data centers closer to users for faster performance (like self-driving cars or smart cities).
3. Shift to Digital Everything: Work, education, healthcare, entertainment, banking — nearly everything we do is now digital-first. That requires 24/7 digital infrastructure — and data centers are the backbone.
4. Support Critical Industries like defense, biotech, and energy Global Internet Infrastructure needs: The internet needs physical places to live. That includes subsea cables coming ashore like those in Virginia Beach, cloud zones being expanded, and redundant networks being built for reliability and resilience.
5. National and Economic Competitiveness: Regions and countries are racing to attract digital infrastructure to:
Boost economic development
Create high-tech jobs
Secure data sovereignty