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The Rise of Rural Digital InfrastructureIn 2025, the data center industry is no longer confined to the dense, high-cost footprints of major metropolitan areas. As demand accelerates for AI training, cloud services, content delivery, and real-time applications, operators are pursuing new frontiers: rural regions with scalable, cost-effective, and energy-efficient potential.These areas—once considered edge outposts—are now central to long-term infrastructure strategies. With abundant land, access to renewable power, pro-growth tax incentives, and expanding fiber networks, rural America is evolving into a core engine for digital infrastructure. This report explores six rural hotspots that are leading the charge and attracting billions in investment this year.1. Rural VirginiaExpanding Beyond AshburnAshburn remains the data center capital of the United States, but neighboring rural counties are emerging as high-potential alternatives. Regions such as Prince Edward, Mecklenburg, Pittsylvania, and Halifax now offer operators access to the same Northern Virginia fiber ecosystem at a fraction of the cost.What Makes It Attractive:Direct proximity to Ashburn's robust fiber backboneSignificantly lower land acquisition and utility costsAggressive state and county-level tax incentivesAccess to solar and biomass energy developmentsKey Developments:Microsoft’s Boydton campus, now exceeding $1 billion in investmentPre-zoned data center parks designed to accelerate constructionPower capacity upgrades through Dominion Energy partnerships2. The DakotasThe Frontier of Renewable Edge ComputingNorth and South Dakota are fast becoming renewable energy powerhouses for the digital economy. These states combine minimal natural disaster risk with some of the lowest power rates in the country—driven by massive wind generation capacity and underutilized grid infrastructure.What Makes It Attractive:Among the lowest commercial electricity costs in the U.S.National leaders in wind energy generation and land availabilityNaturally cool climates that reduce mechanical cooling costsSupportive rural broadband initiatives and fiber expansionKey Developments:Applied Digital's advanced data center in Ellendale, powered by renewablesEmerging fiber partnerships between state governments and private ISPsGrowing interest in modular and edge deployments from AI firms3. Rural TexasFrom Oil Fields to Fiber FieldsWhile Dallas, Houston, and Austin are well-established tech hubs, rural Texas is powering a new wave of digital infrastructure. West, East, and Central Texas counties are leveraging their energy independence, business-friendly policies, and massive tracts of land to welcome hyperscale and AI-focused deployments.What Makes It Attractive:Independent ERCOT grid enables customized power agreementsTexas leads the U.S. in installed wind and solar capacityStrategic central location between coastal data corridorsFavorable permitting environment and low development overheadKey Developments:Lancium’s renewable-powered data campus in East TexasMeta’s land and power procurement in West TexasStatewide expansion of modular edge and AI compute clusters4. Northern NevadaSilicon Valley’s Scalable NeighborJust across the border from California, Northern Nevada offers a compelling mix of proximity to the Bay Area, lower costs, and renewable energy options. With no corporate or personal income tax, it has become a prime destination for cloud providers and enterprise operators seeking scale without the overhead of California regulation.What Makes It Attractive:Favorable tax environment and low cost of doing businessStrong availability of geothermal and solar energy sourcesClose to major tech markets including Silicon Valley and SacramentoSignificant investment in data center-ready industrial parksKey Developments:Apple’s $4 billion Reno facility expansionGoogle and Tesla activity at the Tahoe-Reno Industrial CenterSwitch’s SUPERNAP Las Vegas mega campus continuing to grow5. Rural GeorgiaThe Southeast’s Infrastructure EngineGeorgia has made strategic investments in rural broadband, clean energy, and workforce development, positioning it as a fast-rising player in the Southeast data center landscape. Counties outside Atlanta—such as LaGrange, Dublin, and Douglas—are now welcoming major projects.What Makes It Attractive:High-capacity fiber routes extending through southern GeorgiaSolar farm expansion supported by state and municipal utilitiesIncentives for clean energy and tech-based rural revitalizationTechnical training programs feeding data center labor needsKey Developments:Meta’s $800 million facility in Stanton SpringsElectric Cities of Georgia partnerships enabling shared infrastructureRegional push for edge data deployments to support local industries6. Ohio’s Rural CorridorHeartland Hosting for the CloudOhio is leveraging its central U.S. location, robust power infrastructure, and fiber expansion to turn rural counties into key hubs for cloud and AI workloads. With close proximity to Chicago, New York, and Washington, D.C., latency performance is strong—and costs are low.What Makes It Attractive:Strategic location for east-west and north-south data trafficEnhanced broadband connectivity across Appalachian OhioLow-cost power with upgraded reliability and redundancyData center-friendly policy landscape and grant programsKey Developments:Amazon Web Services expansion in New Albany and beyondMajor fiber corridor build-outs through underserved countiesStrong collaboration between state agencies and hyperscalersHonorable MentionsWestern Pennsylvania: Building on Pittsburgh’s AI, robotics, and university research foundationRural Illinois: Growing interest in edge deployments outside Chicago’s metroSouthern Oregon: Access to hydroelectric power and a cool climate supports clean colocation growthRural is the New ScalableThe rural data center boom is not a passing trend—it is a structural evolution of the global digital infrastructure landscape. These emerging hotspots offer operators and investors something urban markets increasingly cannot: space, power, flexibility, and long-term viability. In 2025, the heartland is becoming theheartbeat of the cloud.Whether you're a hyperscaler seeking AI-ready land and power, or a colocation provider looking to serve edge workloads with low overhead, these rural regions provide a compelling foundation for expansion. As technology decentralizes and data needs explode, the next great opportunity lies far from the skyline—in the soil, sun, and silicon of rural America.

Ashburn, Virginia, is often dubbed "Data Center Alley" for its dense concentration of digital infrastructure—but there’s more to the story. While Ashburn has become synonymous with global internet traffic, rural areas throughout Virginia are beginning to play an equally vital, though quieter, role in powering the internet.From repurposed farmland in Prince Edward County to the rolling hills of southwest Virginia, data center developers are planting roots beyond the Beltway. These rural areas are helping hyperscalers, colocation providers, and enterprise operators tap into more land, more power, and lower costs—without sacrificing proximity to the densely networked corridors of Northern Virginia.Why Rural Virginia?1. Proximity to Ashburn’s Fiber CoreRural Virginia’s close proximity to the world’s busiest internet hub allows new data centers to interconnect with Ashburn's rich fiber ecosystem while benefiting from lower real estate and operating costs.2. Plentiful, Affordable LandAs land prices in Ashburn and surrounding areas continue to rise, developers are turning to rural counties where expansive parcels are more readily available and significantly more affordable.3. Reliable and Growing Power SupplyRural regions offer opportunities to build near substations and transmission lines with fewer permitting roadblocks. Additionally, Dominion Energy and Appalachian Power are expanding renewable energy options tailored for data centers.4. Favorable Tax IncentivesVirginia offers tax exemptions for data center equipment, and many counties sweeten the deal with local incentives for job creation, investment, and energy efficiency.5. Resilient Climate and Low Disaster RiskMuch of rural Virginia is safe from earthquakes, wildfires, and hurricanes, making it ideal for mission-critical infrastructure.The New Data Center Frontier: Key Regions1. Prince William and Fauquier CountiesJust west of Ashburn, these counties offer more space and slightly lower land prices while remaining well-connected to Northern Virginia's fiber infrastructure. Hyperscalers are actively seeking land here to support spillover from Loudoun County.2. Prince Edward CountyOnce reliant on tobacco farming, this central Virginia county is redefining itself with tech-driven investment. It offers affordable land and existing infrastructure suitable for mid-size data center developments.3. Southern Virginia (Danville, Martinsville, and Pittsylvania County)Southern Virginia is leveraging its history of manufacturing and textile industries to pivot toward digital infrastructure. With access to workforce training programs and strong electrical grids, this region is ripe for transformation.4. Southwest VirginiaAppalachian counties are embracing tech with support from public-private partnerships. Fiber upgrades and federal broadband funding are enhancing the region’s attractiveness to edge and modular data center providers.Infrastructure Investments Driving GrowthBroadband ExpansionState-backed and federally funded programs like the Virginia Telecommunication Initiative (VATI) are bringing fiber to unserved rural areas, making remote data center locations more viable.Renewable Energy ProjectsSolar and wind projects are expanding in rural counties to meet growing demand for clean power. Companies are signing Power Purchase Agreements (PPAs) to ensure data centers are environmentally responsible.Transportation AccessWhile rural, many of these areas are strategically located near highways and railroads, enabling the efficient transport of construction materials and equipment.Use Cases and Benefits of Rural Deployment1. Edge Computing EnablementRural data centers bring compute power closer to end users, reducing latency for applications such as IoT, AR/VR, and autonomous systems. This is especially important in agricultural, logistics, and healthcare sectors.2. Secondary Site RedundancyOperators in Ashburn are building redundant sites in rural Virginia to improve disaster recovery and business continuity strategies.3. Cost OptimizationLower land, labor, and energy costs help businesses scale more affordably. Rural counties also offer less competition for land and permitting, speeding up project timelines.4. Community DevelopmentData center projects are creating new jobs, improving infrastructure, and increasing tax revenues for historically underfunded counties.Notable ProjectsMicrosoft in Mecklenburg CountyMicrosoft has invested over $1 billion in its Boydton campus, including multiple data center buildings and green energy initiatives. It’s one of the largest rural data center investments in the U.S.QTSThese major colocation providers are exploring land acquisition and partnerships in central and southern Virginia to diversify their portfolios.County Tech Parks and Innovation ZonesCounties like Halifax and Pittsylvania are launching tech parks with pre-zoned land and ready-to-deploy infrastructure to attract future data center tenants.Challenges and Considerations1. Workforce DevelopmentRural regions often have smaller labor pools. Investment in training and partnerships with local colleges is key to meeting operational needs.2. Public Perception and ZoningCommunity concerns about land use, noise, and environmental impact can stall projects. Transparent engagement and community benefit programs help mitigate resistance.3. Fiber Backhaul LimitationsWhile progress is being made, some rural areas still require fiber buildouts to support high-capacity traffic. Partnerships with telecoms are addressing these gaps.Future OutlookRural Virginia is poised to play an even greater role in the state’s data center future. Key trends to watch include:Hybrid deployments combining Ashburn-based cores with rural edge sitesIncreased hyperscaler interest in secondary and tertiary marketsAdvances in AI-driven cooling and automation supporting remote operationsMore sustainability-linked investments as climate concerns drive designWith continued infrastructure improvements and strong government backing, rural Virginia is becoming not just a backup plan—but a strategic pillar of national IT infrastructure.Beyond Ashburn, rural Virginia is quietly powering the internet’s next evolution. From central to southwest regions, the state’s lesser-known counties are attracting major investments, thanks to their affordability, reliability, and proximity to one of the most connected digital corridors on Earth.For companies seeking scale, sustainability, and speed to market, rural Virginia offers an increasingly compelling value proposition. As hyperscale and edge strategies converge, the countryside may very well become the core of tomorrow’s internet infrastructure.Stay tuned as we continue mapping out the growing landscape of rural innovation across the digital economy.

Texas has always been big. Big skies, big trucks, big steaks—and now, big data. But this time, it’s not Austin or Dallas leading the charge. It’s rural Texas. From windswept plains and former cattle ranches, vast tracts of land across the Lone Star State are being transformed into high-tech hubs that power the digital world.Welcome to Texas’s rural data boom.The Digital Frontier Moves WestIn the past, when tech companies talked about expansion, they looked to coastal cities or growing metro areas. Today, those conversations are shifting toward small towns in Texas—places most people have never heard of—because they offer exactly what hyperscale and edge data center operators need: cheap land, low taxes, abundant power, and wide-open spaces.From Hillsboro to Hutto, and from Temple to Taylor, rural counties across Texas are being eyed by the likes of Meta, Google, Microsoft, and Digital Realty. What once supported cattle and cotton now supports rows of humming servers, fiber lines, and high-voltage substations.Why? Because the data can’t wait.Why Rural Texas?1.Land—Lots of ItThe most obvious reason is land. A hyperscale data center can require anywhere from 100 to 300 acres. That’s nearly impossible to find in downtown Dallas or Houston without paying a fortune. But in West Texas or along the I-35 corridor between Austin and Waco, that kind of land is available—and cheap.For example, in Temple, Texas, Meta (formerly Facebook) is investing billions into a massive campus that could span hundreds of acres. The area was once known for agriculture. Now, it’s attracting tech titans.2.Energy InfrastructureTexas is a powerhouse—literally. Thanks to its deregulated electricity market and the ERCOT (Electric Reliability Council of Texas) grid, energy costs are among the lowest in the country. Texas also boasts a diverse power mix: natural gas, solar, wind, and increasingly, battery storage.This is especially appealing for data centers, which consume massive amounts of electricity. Rural areas provide proximity to transmission lines and substations, allowing for faster deployment and easier scalability.Plus, many rural communities are welcoming solar and wind farms alongside data centers, creating symbiotic relationships and enabling companies to meet sustainability goals.3.Tax IncentivesThe state of Texas doesn’t have a corporate income tax, which is a big draw on its own. Add in local tax incentives from rural municipalities hungry for economic development, and you get a financial environment that makes large-scale digital infrastructure investment far more attractive than in urban centers or other states.The Texas Data Center Exemption program, for instance, provides sales tax exemptions on servers, electricity, and construction materials. This has already saved operators hundreds of millions.4.Fiber ConnectivityHistorically, rural Texas was at a disadvantage due to limited fiber. But that’s rapidly changing. The state and private operators have aggressively expanded fiber backbone routes across major highways and utility corridors.Projects like the Broadband Infrastructure Fund and federal BEAD allocations are bringing multi-gigabit speeds to places where you once couldn’t even make a clear phone call. For hyperscale and edge computing providers, this levels the playing field and enables Tier 2 and Tier 3 cities to compete with major metros.Who’s Building in the Barnyard?The list of companies betting on rural Texas reads like a who’s who of the digital economy.Meta in TempleMeta’s $800 million data center project in Temple is perhaps the most high-profile. Located along a growing tech corridor, the site benefits from dual power substations, favorable tax agreements, and direct access to long-haul fiber.The facility is projected to span over 900,000 square feet and could scale to multiple buildings over the next decade. This move brings thousands of construction jobs and long-term economic impact to the region.Google in MidlothianGoogle has poured over $600 million into its data center in Midlothian, a rural area south of Dallas. It’s leveraging renewable energy agreements and local economic development partnerships to fuel its expansion.As AI and machine learning workloads scale, Google has said that it needs “non-traditional” geographies that can support massive power needs and longer-term planning horizons.Microsoft in San AngeloMicrosoft is making big bets on San Angelo and other West Texas sites, drawn by a combination of wind power, solar energy, and an ample labor pool. It’s part of the company’s global push for sustainable data centers and edge computing.Others: Digital Realty, QTS, SwitchDigital Realty and QTS Realty Trust are actively scouting and building in rural Texas. Meanwhile, companies like Switch and NTT are reportedly evaluating tracts outside the usual metro hubs to build future campuses.What This Means for Local Communities1.Economic GrowthThese data center projects are game-changers for rural towns. They bring hundreds of millions—or even billions—of dollars in investment. Construction work lasts years, and permanent tech jobs follow. Though data centers don’t employ as many people as factories, the ripple effects are massive.Local restaurants, gas stations, service companies, electricians, HVAC techs, and schools all benefit. Some towns are using the added tax revenue to revitalize downtowns, upgrade water infrastructure, and improve emergency services.2.Workforce Training and STEM EducationSeveral projects include commitments to community colleges and workforce programs. Meta’s Temple campus, for example, includes partnerships with local schools to build IT and data center technician pipelines. Google and Microsoft are doing similar work in their host communities.As demand grows for HVAC techs, electricians, systems engineers, and cybersecurity pros, these rural areas are creating career paths that once only existed in big cities.3.Infrastructure ModernizationTo host a data center, a town needs high-speed internet, upgraded power infrastructure, and robust road systems. These upgrades don’t just benefit the data center—they improve the quality of life for residents, too.Schools get fiber. Businesses get faster internet. Residents enjoy more reliable power and emergency response capabilities. In many cases, what begins as a tech project turns into a community-wide transformation.Risks and ConcernsOf course, the rural data boom isn’t without concerns.Water UseSome data centers require enormous amounts of water for cooling, especially in hotter climates like Texas. While many companies are moving toward air or liquid immersion cooling, water usage is still a hot-button issue in drought-prone areas.Some local governments are demanding environmental impact assessments and placing limits on water draw.Energy Load ManagementTexas has faced several major power outages in recent years, most notably the 2021 winter storm. With data centers pulling gigawatts of power, residents fear that increased demand could exacerbate strain on the grid.To address this, many operators are investing in on-site battery storage, microgrids, and direct solar deployment.Community PushbackWhile many welcome the investment, not everyone wants to live next to a server farm. Some residents raise concerns about noise, light pollution, or the visual impact on once-rural landscapes.Transparent planning, community engagement, and long-term infrastructure commitments are key to overcoming this opposition.The Edge Is Coming to the RanchBeyond hyperscale campuses, rural Texas is also experiencing a quiet revolution in edge computing. As more applications—especially those tied to AI, autonomous vehicles, gaming, and real-time analytics—require ultra-low latency, edge data centers are cropping up closer to where the data is generated.This is especially important for industries already rooted in rural Texas: oil and gas, agriculture, and logistics. From connected tractors to pipeline sensors, edge infrastructure is becoming critical.Companies like Vapor IO, EdgeMicro, and DartPoints are placing modular edge data centers near cell towers and power stations in rural counties. These facilities don’t need hundreds of acres. They just need a small pad, strong fiber, and a few kilowatts of power.In doing so, they’re making it possible to process data locally, reducing strain on long-haul networks and enabling faster digital experiences in areas once considered “offline.”From Boots to BytesTexas’s rural data boom is just getting started. As cloud, AI, and edge workloads continue to scale, the demand for land, power, and connectivity will only grow. And while cities like Austin and Dallas will remain important, the real frontier lies in the state’s overlooked counties.From cattle ranches to server farms, Texas is proving that the future of data doesn’t belong to Silicon Valley or Wall Street—it belongs to those willing to rethink what rural really means.The next time you’re driving past a pasture in West Texas, take a closer look. That fence might not be holding in cattle anymore. It might be guarding a billion-dollar digital brain.

Once overlooked in the tech race, North Dakota and South Dakota are fast becoming pivotal players in the expansion of digital infrastructure. With an abundance of low-cost energy, stable climates, and pro-business environments, the Dakotas are making a compelling case for data center development—especially for edge computing, where location, latency, and sustainability matter most.This blog explores why the Dakotas are attracting attention from hyperscalers, colocation providers, and forward-thinking enterprises. We'll highlight the strategic advantages, emerging projects, and how these rural states are playing an outsized role in the future of edge computing.Why the Dakotas? Key Competitive Advantages1. Abundant and Affordable EnergyBoth states benefit from some of the lowest energy costs in the nation. Thanks to a mix of wind, hydroelectric, and coal power, data centers can access reliable and cheap electricity—a critical factor for 24/7 operations.2. Renewable Energy GrowthThe Dakotas are harnessing the wind. North Dakota ranks among the top five U.S. states for wind energy production, while South Dakota is a leader in hydroelectric power. This allows operators to meet carbon-reduction goals without sacrificing performance.3. Cool Climates for Free CoolingWith long, cold winters and mild summers, the Dakotas offer ideal conditions for natural or "free" cooling, which can significantly lower operational costs and environmental impact.4. Ample Land for ExpansionRural landscapes mean data centers can be built on large, inexpensive plots—perfect for hyperscale campuses or modular edge deployments.5. Low Natural Disaster RiskUnlike coastal areas, the Dakotas face minimal risk from hurricanes, wildfires, and earthquakes. This makes them ideal for mission-critical infrastructure that must stay online year-round.6. Strategic Central LocationGeographically centered, the Dakotas serve as key connectivity points between East and West Coast markets. This is crucial for edge computing, which relies on low-latency access to end users.Edge Computing in Rural AmericaAs edge computing evolves, the traditional focus on Tier 1 cities is shifting toward underserved but strategically located regions. The Dakotas check multiple boxes for edge infrastructure:Proximity to underserved rural and mid-sized citiesFavorable latency to major U.S. hubsLower deployment costsAvailability of skilled labor through technical colleges and military installationsEdge data centers in the Dakotas can support use cases ranging from smart agriculture and autonomous trucking to drone logistics, IoT manufacturing, and rural broadband expansion.Key Projects and InvestmentsApplied Digital in Ellendale, NDApplied Digital is building a massive data center campus powered by wind and hydroelectric energy. The facility is designed for high-density computing and blockchain workloads and highlights the region's energy surplus and scalability potential.Sabey Data Centers' Expansion PlansSabey Data Centers has explored land acquisition in South Dakota as part of a broader edge strategy targeting rural and emerging markets.State Incentive ProgramsSouth Dakota's Board of Economic Development and North Dakota's Department of Commerce offer tax exemptions, fast-track permitting, and grants to attract digital infrastructure projects.Fiber Infrastructure ImprovementsBoth states are investing in middle-mile and long-haul fiber. Public-private partnerships are expanding broadband access, making the region more viable for latency-sensitive services.Use Cases Driving Edge Demand in the Dakotas1. Smart AgricultureIoT sensors, drone-based crop monitoring, and AI-powered irrigation systems require fast data processing close to the source. Edge data centers can reduce latency for precision farming operations.2. Autonomous Vehicles and TruckingWith major highways and freight routes crossing the Dakotas, edge infrastructure can support autonomous vehicle navigation, fleet logistics, and V2X (vehicle-to-everything) communications.3. Rural TelemedicineEdge computing can power low-latency, high-resolution remote healthcare services, from diagnostics to robotic surgeries—particularly valuable in remote communities with limited access to hospitals.4. Distributed AI TrainingAs AI models get more decentralized, training can occur closer to the data source. Edge facilities in rural areas allow localized AI development for agriculture, energy, and logistics sectors.5. Disaster Resilience and BackupEdge data centers in low-risk areas like the Dakotas provide backup for more vulnerable facilities on the coasts, improving national IT resilience.Sustainability and ESG CommitmentAs enterprises face pressure to reduce emissions, the Dakotas offer a sustainable path to digital expansion:Wind and hydroelectric sources power large portions of the gridCooler climate reduces the need for mechanical cooling systemsLower carbon footprint compared to energy-intensive urban hubsSupportive regulatory climate for green infrastructureMany hyperscalers and edge providers are evaluating the Dakotas as part of their ESG-aligned site selection strategies.Challenges to Consider1. Talent AvailabilityWhile technical education programs are growing, the workforce may be more limited than in major metros. Partnerships with universities and military bases are helping bridge this gap.2. Limited Air ConnectivityFor companies that require frequent travel, limited flight options to the Dakotas may present logistical challenges.3. Brand Recognition and PerceptionThe Dakotas are not yet widely known for tech infrastructure. Continued investment and success stories will be needed to shift market perception.The Road AheadIndustry analysts forecast that edge data center growth in the Dakotas will continue to accelerate through 2030, fueled by:Rising demand for rural and regional digital servicesAI-driven applications needing localized computeInfrastructure funding through federal and state grantsPublic-private collaboration on broadband and powerExpect to see more modular, prefabricated, and micro data centers dotting the plains in the coming years.The Dakotas are no longer just flyover country—they’re fast becoming key nodes in the next generation of digital infrastructure. With unbeatable energy economics, geographic advantages, and growing edge demand, North Dakota and South Dakota are building big.For businesses looking to scale sustainably and position themselves at the heart of the edge revolution, the Dakotas offer fertile ground. As investment pours into rural America, the future of data centers looks cooler, cleaner, and more connected than ever.Stay tuned as we continue tracking rural innovation and the expanding frontier of edge infrastructure in the American heartland.