Show-Me State Times

As the demand for computing power rises, largely due to advances in artificial intelligence, communities across the United States are seeing a surge in data center development. These facilities require significant investment and generate numerous construction jobs. The competition among states and localities to attract these projects is strong, given their potential to boost property and sales tax revenues.

According to a 2025 report from McKinsey, the need for data center computing capacity is expected to nearly triple by 2030. While traditional uses like email and web hosting are set to almost double, the majority of this growth will come from AI-related activities, which are projected to increase by 350% over the same period.

Constructing data centers is both complex and expensive. The growing need for data processing is fueling a nationwide race to build new centers and increasing demand for electricity, cooling systems, technology, materials, and skilled workers. AI-driven operations require far more energy than standard data center tasks. The U.S. Department of Energy estimates that by 2030, data centers could use up to 12% of all electricity produced in the country—up from about 4% today.

Data center development is no longer limited to traditional tech hubs. States with flat terrain, affordable land, and access to utilities are attracting interest from developers and technology companies. Many states offer incentives; for example, Missouri has implemented a Data Center Sales Tax Exemption Program to encourage investment. Virginia hosts more than 600 data centers and is recognized as a global leader in this sector. Missouri currently has nearly four dozen such facilities operated by companies including Google, Meta, MasterCard, and Citi. While most are located around Kansas City and St. Louis, new projects are appearing elsewhere in the state.

Not every location is suitable for data center development. Factors such as access to affordable power, proximity to fiber optic networks, material costs, workforce availability, and community sentiment all play a role in determining where these projects are built.

The ongoing growth of AI suggests continued expansion of data center needs over the next decade. Missouri’s central location, fiber infrastructure, cost advantages, and skilled workforce may position it well to secure additional projects if it maintains strong energy capacity and community support.