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Home»Technology»In Data Center Alley, AI Sparks Construction Surge Amid Uncertainties
Technology

In Data Center Alley, AI Sparks Construction Surge Amid Uncertainties

December 3, 20253 Mins Read
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Ashburn: The Heart of Data Centers

As airplanes glide toward Washington D.C.’s Dulles Airport, they pass over Ashburn—a town also known as Data Center Alley. Here, around 70% of global internet traffic flows through this bustling area.

Years ago, this part of northern Virginia was filled with farmland and open spaces. However, as suburban development grew, the rise of the internet brought an influx of data center builders who promised tax revenue and local investment in exchange for setting up their often-unattractive structures.

So, why has Ashburn become the prime choice for data centers? It’s a mix of strategic location, strong infrastructure, business-friendly policies, and affordable energy. Not far away sits the Pentagon and the U.S. government, alongside the former headquarters of AOL, one of the early giants of the online world.

The presence of these data centers has greatly benefited Ashburn over the past 20 years. The town has seen new shops, neighborhoods, an ice skating rink, and various public amenities spring up, showcasing the wealth flowing into the area. Ashburn is located in Loudoun County, the wealthiest county in the U.S. per capita, drawing attention from towns worldwide eager to learn from its success, even if some view its growth as a warning.

With a population of about 40,000, Ashburn currently hosts 152 operational data centers within its 40 square kilometers (15.4 square miles). New centers are emerging rapidly as investments in artificial intelligence surge, creating a race for larger facilities. In 2025, private companies are projected to spend around $40 billion each month on U.S. data center construction, a significant increase from just $1.8 billion a decade ago. Major players like Google, Amazon, Microsoft, and OpenAI are leading this charge.

Recently, AFP reporters toured a typical facility operated by Digital Realty, which manages 13 data centers in Ashburn. Chris Sharp, the Chief Technology Officer, emphasized that they provide not just space, but also the vital power, cooling, and connectivity needed for operations.

Inside these data centers, computer rooms—restricted to outsiders—house rows of servers. The industry is evolving, with AI technologies requiring advanced infrastructure. These new data centers need substantial power and cooling solutions. HVAC systems cannot keep up with the heat generated by servers running advanced graphics processing units essential for AI training.

Leslie Abrahams, deputy director at the Center for Strategic and International Studies, noted that last year, Virginia’s data centers consumed electricity comparable to all of New York City. The demand for sophisticated cooling systems has surged, often relying on nearby water sources to cool the equipment effectively.

Local residents like 24-year-old Makaela Edmonds see the rapid rise of data centers firsthand. Her home sits close to a large construction site for new facilities. While construction jobs are plentiful, once operational, many data centers display little human activity, leading to questions about local job benefits.

“The advantages of data centers are more regional, national, and global than local,” Abrahams pointed out.

In a surprising twist, local politicians in northern Virginia are now campaigning to slow down data center expansion instead of encouraging more projects. For companies like Digital Realty, the challenge lies in collaborating with communities to address the implications of such growth.

Despite any concerns, the demand for data centers shows no signs of slowing down. “The growth and demand in this market is monumental,” Sharp concluded.

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