The rise of AI and cloud computing has accelerated the construction of larger and more numerous data centers, with the industry adding around 137 hyperscale facilities in 2024 alone and expecting capacity to double within four years.

Hyperscale data centers are massive, highly power-intensive facilities that support thousands of servers and are crucial for AI advancements, consuming 30 to 100 megawatts of electricity—equivalent to powering hundreds of thousands of homes—and already accounting for about 3-4% of U.S. electricity use.

The global number of hyperscale data centers doubled over five years to 1,136 by 2024, with the U.S. leading the industry by hosting 54% of this capacity, mainly in regions like Northern Virginia, Dallas, and Silicon Valley.

The U.S. dominates the hyperscale data center industry, with 14 of the top 20 global markets, and major operators contributing to the majority of capacity, supported by significant investments such as Google's $9 billion plan for AI data centers in Virginia.

Key U.S. hubs like Virginia, Texas, and California lead the market due to factors such as low electricity costs, land availability, and proximity to federal agencies, while international growth is also evident in China, Europe, India, Australia, and Saudi Arabia.

The increasing demand for AI has intensified the need for faster, larger data centers, with the U.S. expected to remain the dominant global player in hyperscale infrastructure supported by substantial investments.

Data centers are essential for nearly all digital activities, from streaming and online banking to healthcare, supporting the backbone of modern digital life, despite remaining largely invisible to most users.

Data centers are part of a digital food chain, ranging from individual desktops and small server rooms to massive hyperscale facilities operated by tech giants like Amazon, Microsoft, and Google.