Are Data Centers Expanding Beyond Established Tech Hubs?

Data centers are remaining highly concentrated in specific locations even as the industry grows, according to the authors of the newly released report. While more than half of upcoming projects are staying within established tech hubs, a rising portion of new facilities is gathering in entirely new locations to create fresh regional centers.

The report states that “at the global level, over half of all data centres in the pipeline are situated in existing clusters,” but highlights that “a growing share of new capacity will form entirely new clusters.”

Essentially, these massive computer warehouses are not scattering randomly across the globe. Instead, they prefer to group together because it makes it easier to access the heavy-duty power lines, specialized cooling systems, and internet infrastructure they require. As old hubs run out of space or power, companies are beginning to create these concentrated groups in new regions.

The report “Key Questions on Energy and AI” was published in April 2026 by the International Energy Agency in Paris, France. Part of the World Energy Outlook Special Report series, the analysis was prepared by a team led by Thomas Spencer and Siddharth Singh under the direction of Laura Cozzi. The publication provides a comprehensive assessment of the rapidly evolving intersection between artificial intelligence, data center power demands, and global energy markets.

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