Grid Constraints Push Data Centers Out of Virginia

Electricity availability and grid capacity have become the primary determinants for the location of new data center developments across the United States. In the Mid-Atlantic region, specifically within the PJM grid, tightening conditions and bottlenecks are driving up power prices, creating significant financial pressure for consumers.

These constraints are prompting developers to seek alternative sites outside of Virginia. An analysis by Goldman Sachs identifies Texas as the most competitive state for future data center buildouts. Georgia and California also rank as highly competitive options for developers looking to avoid the grid instability and rising costs currently affecting the Mid-Atlantic region.