According to the Arcadis Data Center Location Index 2021, the United States (US) is the top location for constructing data centers, with North Virginia having the largest data center market in the country.
The US remains an attractive location for data centers due to its mature approach to cybersecurity, high mobile broadband penetration, and high download speeds. In line with this, a report from the JLL Data Center Outlook states that in the US alone, the data center construction pipeline reached near-record levels by the end of 2020 — totalling 611.3 megawatts (MW).
Among all US states, North Virginia accounts for half of the overall amount at 326MW – an increase of more than 400 percent in 2019. It has been examined that the data center market in Northern Virginia is overwhelmingly driven by the technology sector (54 percent) followed by the cloud (37 percent).
“Finding the best location for a new data center is a critical part of how companies can maximize the performance of their investment in a new facility,” Arcadis pointed out. In fact, there are multiple factors to analyze when deciding where to place a new data center. These include the supply and demand-side forces at play in the relevant markets where the company must develop a comprehensive understanding of the support in place for building and operating data centers, as well as the demand for services the gathered data entails.
The COVID-19 pandemic has further supercharged internet traffic and the use of digital services, resulting in the phenomenal growth in demand for data centers. Other best data center locations include Singapore, Japan, Sweden, and Norway.