As data consumption continues to soar – further boosted by the artificial intelligence boom – new data centers are needed to keep pace with the surging demand. This is leading to a major increase in data center development across the country and around the world.

As more and more communities come face to face with these new neighbors, it seems fitting to mark International Data Center Day, celebrated annually on the fourth Wednesday of March, to raise awareness and recognize the important contributions of these digital workhorses.  

“Data centers are part of our digital infrastructure – much like our critical water, power and transportation systems. They have become essential in our daily lives,” says Jaymie Scotto Cutaia, CEO and founder of JSA, a public relations, marketing and event planning firm serving the global digital infrastructure industry for over 20 years. 

“Every time we use our phones, stream a movie, send an email or make purchases online, we’re relying on reliable and speedy data transmission enabled by data centers,” Cutaia explains. “It’s a central piece of our world’s digital backbone and enables nearly everything we consume or experience daily to proceed.”

Powering Innovation and Progress 

“It’s a fascinating time to be part of the digital infrastructure space,” said Marc Hourican, Chief Technology Officer at CleanArc Data Centers. “The data centers we’re building at CleanArc aren’t just server warehouses — they’re future-ready ecosystems that power innovation, enable seamless connectivity, and push the boundaries of what’s possible, all with sustainability as a fundamental principle.”

Nick Phillips EVP of External Affairs at Applied Digital, noted that data centers drive progress. “At Applied Digital, we believe data centers should be drivers of broad, sustainable progress,” he said. “Our work in Ellendale, North Dakota, exemplifies this. By investing in what’s already there, we aim to enhance local infrastructure and economic vitality, inviting residents to join us and grow together. Our collaborative housing solutions and strategic investments are all about empowering people while staying true to the community’s unique character.”

Dr. Denitza Arguirova, Director of Data Center Development at Provident Data Centers, cited the important role of data centers in boosting digital infrastructure. “When data centers are built, they do more than house servers — they strengthen local infrastructure, expand fiber networks, and enhance internet speeds for everyone. These hubs play a vital role in broadening broadband access, particularly in underserved areas. By driving connectivity projects, they help bridge the digital divide to ensure residents and businesses benefit from faster, more reliable internet,” she said.

Jim Buie, CEO of ValorC3 Data Centers, commented that data centers are critical for meeting the needs of today and tomorrow. “Data centers are beyond essential — delivering connectivity, real-time processing and computational power to meet the accelerating demands of AI and emerging technologies. They’re not just supporting today’s digital needs. They’re powering communities well into the future, driving unparalleled innovation and economic vibrancy.”

Data Center Growth by the Numbers 

The number of data centers is growing rapidly, with global estimates showing more than 11,000 data centers in various stages of development in 2024. This growth trajectory is projected to escalate, largely due to the recent proliferation of AI uses. In the U.S., there were a reported 5,381 data centers as of March 2024, the most of any country worldwide, according to research firm Statistica.

The rise in data center development has prompted increased conversation around data center energy consumption and the need for greater use of green energy solutions –  an area the industry is pursuing vigorously. “As data center demand rises, the industry is increasingly seeking ways to meet their energy needs through sustainable solutions,” says Cutaia. “Advancements are being made through the use of innovative cooling technologies, equipment upgrades and other energy-saving measures. Through our own Greener Data initiative, we’re creating a place to foster these conversations,” adds Cutaia, referring to JSA’s first-of-its-kind global sustainability education initiative within the digital infrastructure community. The Greener Data platform provides multiple, inclusive ways to inspire collaboration and propel the industry’s collective sustainability journey forward. This includes developing Greener Data, an Amazon bestselling book series, featuring industry thought leaders discussing sustainability issues, insights and success stories. 

Data Centers Bring Community Benefits

In addition to their purpose as community access points to global business, higher education, healthcare advances, commerce and entertainment, new job creation and increased local tax revenues are two often-cited advantages of data centers. With this new revenue source for local governments, communities around the country have seen the addition of parks and recreation amenities, new roads and other capital improvements, along with a variety of other community improvement projects. In Virginia, for instance, which hosts the world’s largest concentration of data centers, tax revenues from the data center industry in Loudon County, Virginia, now contribute an estimated $859 million annually in tax revenue. The surplus has helped to build new schools, expand healthcare initiatives, fund capital improvement programs and improve recreational amenities.

Communities around the country have also benefited from new education and training opportunities as data center developers partner with local schools to create educational opportunities for future workers. Often, these programs focus on science, technology, engineering and math (STEM) areas for local high school or college students. 

Data centers also serve to invigorate areas economically. “Job creation boosted by data centers drives economic vitality in the local business community,” says Cutaia. “This can result in a domino effect leading to increased spending in restaurants, shops and other local businesses.” In addition, a data center’s presence can attract other tech companies to set up operations nearby, further stimulating economic development.

“By distributing data centers throughout the U.S., the industry is driving economic growth and  enhancing service availability — translating into better service for all users and enabling the responsive digital experiences we’ve come to expect.”