New Study Reveals 97.5% of US Data Centers Located in Cities, Contradicting 'Rural Cloud' Narrative

A study published in Nature Cities reveals that 97.5% of US data centers are located in metropolitan or micropolitan areas, contradicting the 'rural cloud' narrative. Siting is heavily driven by existing urban infrastructure, particularly the nameplate capacity of nearby power plants and retired coal facilities. This urban concentration intensifies competition for grid capacity, land, and water, prompting local communities in states like Florida and New York to push for restrictions and moratoria.

US data center urban concentration

• ▪The finding that 97.5% of United States data centers are urban challenges the prevailing narrative of a remote, rural cloud.
• ▪A study published in Nature Cities found that 97.5% of data centers in the United States are located within metropolitan or micropolitan statistical areas.

Power plant capacity requirements

• ▪The nameplate capacity of nearby power plants was identified as the strongest factor associated with United States data center siting.
• ▪Data center developers prefer locations with existing grid capacity and transmission infrastructure over areas requiring new substations and lines to be constructed.

Repurposed coal plant sites

• ▪Retired coal power plant sites are frequently repurposed for data centers because they retain existing grid connections, transmission corridors, and industrial land.
• ▪The association of data centers with retired coal facilities raises questions about whether the digital economy is building on older fossil-fuel landscapes.

Regional carbon emissions disparities

• ▪The carbon emissions of data centers are heavily shaped by the local electricity generation mix of the region where they connect to the grid.
• ▪Two data centers with identical computing equipment can have significantly different climate impacts depending on regional power generation sources.

Metropolitan economic concentration patterns

• ▪The concentration of data centers in urban areas can lead to competition with households and public services for grid capacity, land, and water.
• ▪Population-based projections indicate that future data center growth is likely to reinforce the dominance of major metropolitan regions rather than decentralize opportunity.