Richmond’s Rise in the Data Center Market

Richmond has officially become the fastest-growing data center market in the United States. For years, Northern Virginia dominated the industry, particularly Ashburn—nicknamed the “Data Center Capital of the World.” Now, as demand for digital infrastructure continues to climb, Richmond is stepping into the spotlight as the sector’s newest growth leader.

Why Northern Virginia Is Reaching Capacity

While Northern Virginia remains a global powerhouse, growth is slowing due to increasing constraints:

• Land availability: Prime sites in Loudoun and Fairfax counties are scarce, limiting large-scale expansions.
• Energy constraints: Utility infrastructure is strained by decades of rapid growth.
• Regulatory pressures: Local zoning and community pushback are creating new hurdles for development.

These factors are encouraging data center operators to look for new, scalable locations—making Richmond an attractive next frontier.

What Makes Richmond Attractive

Richmond’s emergence as a data center hotspot is no accident. The region offers several key advantages:

• Available land: Large tracts of property at competitive prices give operators room to expand.
• Robust infrastructure: Proximity to I-95, rail connections, and access to renewable energy sources.
• Lower operating costs: Compared to Northern Virginia, Richmond offers significant savings in both real estate and utilities.
• Strategic location: Just 100 miles south of D.C., Richmond provides both proximity and diversification for mission-critical facilities.

The Future of Commercial Real Estate in Virginia

This shift signals a broader trend in Virginia’s commercial real estate landscape. As Richmond attracts large-scale data center investments, ripple effects are expected across related sectors—from industrial construction to office and retail demand. The region could see:

• New infrastructure investments in power, fiber, and transportation.
• Increased demand for skilled labor and technical talent.
• Greater visibility for Richmond in national and global tech markets.

For Virginia, the diversification of its data center ecosystem strengthens the state’s position as the premier hub for digital infrastructure in the U.S.