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Data center growth shifts toward rural America, including the Mountain West, report finds

This is a landscape image overlooking a large industrial park filled with long, flat-roofed buildings used for manufacturing, warehousing and data centers. The sky is filled with clouds hovering over rolling green-brown mountains.
Kaleb Roedel
/
Mountain West News Bureau
The Tahoe Reno Industrial Center, located in the high desert of northern Nevada, is a global hub for advanced manufacturing and warehousing. Now, it’s transforming into one of the biggest data center markets in the world.

The U.S. already has about 3,000 data centers — and that number is expected to grow quickly in the coming years. A new report finds much of that growth is shifting away from cities and into rural areas, including in the Mountain West.

The expansion is being driven largely by demand for artificial intelligence and cloud computing, which require massive amounts of energy, water, and physical infrastructure.

The Pew Research Center estimates about 1,500 additional data centers are in various stages of planning or development nationwide. And nearly 4 in 10 of those planned projects are slated for counties that don’t currently have any data centers.

That marks a significant shift from where the industry has historically been concentrated.

“About 90% of the data centers that are currently operational in the country are in urban or suburban areas,” said Aaron Smith, who leads Pew’s Data Labs team.

In the Mountain West, many existing facilities are concentrated in Arizona (157), Nevada (69), Colorado (56) and Utah (42). Rounding out the region are Wyoming (30), Montana (27), New Mexico (22) and Idaho (17).

But most new construction nationwide is concentrated in the South and Midwest, particularly in states like Virginia and Texas.

Even so, the trend is beginning to reach parts of the Mountain West.

In some communities — including Reno, Denver and Phoenix — proposals for new data centers are drawing pushback. Concerns often center on how much water and energy the facilities use, along with potential impacts from noise and air pollution.

Pew researchers note that public awareness of data centers remains relatively low overall. But as more projects are proposed, especially in places that haven’t hosted them before, that could change.

This story was produced by the Mountain West News Bureau, a collaboration between KUNR, Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.

Kaleb is an award-winning journalist and KUNR’s Mountain West News Bureau reporter. His reporting covers issues related to the environment, wildlife and water in Nevada and the region.
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