[jaynamburi]

The concentration of new data center capacity in the U.S. makes sense when you look at the inputs: access to capital, hyperscaler demand, relatively predictable regulation, and deep energy and fiber infrastructure. Regions like Northern Virginia, Texas, and the Midwest already have the grid connectivity and permitting pathways to scale quickly.

That said, this concentration also creates second-order risks. Power availability, water usage, and local grid stability are becoming real constraints, and they don’t scale linearly. We’re already seeing projects delayed not by compute demand but by interconnection queues and transmission bottlenecks.

Long term, it wouldn’t be surprising to see more geographic diversification not because demand moves, but because energy and infrastructure constraints force it. Compute may be global, but power and land are very local.