Data Centers in United States

Policy and incentives

Virginia exempts computer equipment and enabling software bought or leased for data centers from state retail sales and use tax (Code of Virginia 58.1-609.3), for facilities with at least $150 million of new capital investment and 50 new jobs paying 1.5 times the local average wage; thresholds fall to $70 million and 10 jobs in distressed localities. Virginia Legislative Information System, Code of Virginia

Under the Code of Virginia 58.1-609.3, the base data center sales and use tax exemption runs from July 1, 2010 to June 30, 2035, with extensions to June 30, 2040 and June 30, 2050 tied to cumulative investment of $35 billion with 1,000 jobs and $100 billion with 2,500 jobs. Virginia Legislative Information System, Code of Virginia

The Texas Comptroller administers a state sales tax exemption for qualifying data centers of at least 100,000 square feet whose owners or occupants commit to at least 20 qualifying jobs in the county and a $200 million capital investment over five years; the exemption lasts 10 years, or 15 years for investment of at least $250 million. Texas Comptroller of Public Accounts

The Illinois Department of Commerce and Economic Opportunity (DCEO) states that, following a Governor's directive of June 5, 2026, it no longer processes applications for the state data center incentive program as of July 1, 2026. The program required at least $250 million of capital investment over 60 months and 20 new full-time jobs. Illinois Department of Commerce and Economic Opportunity

Executive Order 14318, signed July 23, 2025, defines data center projects as facilities requiring more than 100 MW of new load dedicated to AI inference, training, simulation or synthetic data generation, and directs expedited federal permitting for qualifying projects, including those with at least $500 million in committed capital expenditures. The White House

Power and grid

Texas Senate Bill 6 (89th Legislature, 2025) adds Section 37.0561 to the Utilities Code, requiring the Public Utility Commission of Texas to adopt standards for interconnecting large load customers in the ERCOT power region, with a demand threshold of 75 megawatts unless the commission determines a lower threshold is necessary. Texas Legislature Online

On December 18, 2025, the Federal Energy Regulatory Commission (FERC) directed PJM Interconnection, in Docket EL25-49-000 et al., to revise its tariff so that transmission customers serving load co-located with generating facilities can choose from several transmission service options. Federal Energy Regulatory Commission

On June 18, 2026, the Federal Energy Regulatory Commission issued show cause orders to six grid operators (PJM, MISO, SPP, CAISO, ISO-NE and NYISO), giving them 60 days to justify their tariffs as just and reasonable without large-load provisions or to file tariff changes. Federal Energy Regulatory Commission

Oregon House Bill 3546 (2025) requires the Public Utility Commission of Oregon to create a separate classification of service, with its own tariff schedule, for large energy use facilities using 20 MW or more and primarily providing services under NAICS code 518210, and requires their service contracts to run 10 years or longer. Oregon State Legislature (OLIS)

According to the U.S. Energy Information Administration, annual average U.S. retail electricity prices in 2025 were 8.62 cents per kWh for industrial customers and 13.41 cents per kWh for commercial customers; the overall 2025 average of 13.63 cents per kWh is cited to preliminary Electric Power Monthly data. U.S. Energy Information Administration

Land, zoning and sites

According to Loudoun County, Virginia, much data center development in the county was permitted by right until March 2025. The Board of Supervisors has approved changes to the Comprehensive Plan and zoning so that data centers now require an approved special exception application, eliminating data centers as a by-right use in the county. Loudoun County Government – Data Centers Land Use FAQ

On September 10, 2024, the Fairfax County, Virginia Board of Supervisors approved a data center zoning ordinance amendment requiring data center buildings to be at least 200 feet from adjacent residential lot lines and at least one mile from a Metro station. Fairfax County Government News

In July 2025 the U.S. Department of Energy selected four federal sites for AI data center and energy infrastructure development: Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant and Savannah River Site. U.S. Department of Energy

Demand and connectivity

According to a U.S. Department of Energy release of December 20, 2024 on a Lawrence Berkeley National Laboratory report, total U.S. data center electricity usage rose from 58 TWh in 2014 to 176 TWh in 2023. U.S. Department of Energy

The U.S. Census Bureau reported in January 2025, citing Bureau of Labor Statistics data, that the number of people working in U.S. data centers grew from 306,000 in 2016 to 501,000 in 2023, an increase of more than 60%. U.S. Census Bureau – America Counts

In an August 7, 2025 release on new submarine cable rules, the Federal Communications Commission stated there are 90 FCC-licensed submarine cable systems and that submarine cable systems carry roughly 99% of global internet traffic. Federal Communications Commission

The Federal Communications Commission reported in August 2025 that U.S. cable landing licensees had reported more than 5.3 million Gbps of available submarine cable capacity as of December 2022. Federal Communications Commission

Sustainability, water and climate

The U.S. Energy Information Administration reports that renewable energy sources supplied about 24% of total U.S. utility-scale electricity generation in 2025, when total utility-scale generation was about 4.43 trillion kWh. U.S. Energy Information Administration – Electricity in the U.S.

The U.S. Energy Information Administration reports that natural gas was the largest source of U.S. utility-scale electricity generation in 2025 at about 41%, followed by nuclear at about 18% and coal at about 17%. U.S. Energy Information Administration – Electricity in the U.S.

The U.S. Environmental Protection Agency's eGRID database with 2023 data, released in January 2025 and revised in June 2025, gives a U.S. average CO2 output emission rate of 767.209 lb/MWh for electricity generation. U.S. Environmental Protection Agency – eGRID Summary Data

Minnesota's 2025 data center law (2025 First Special Session, Chapter 12, H.F. 16) provides that when a data center contacts the state Department of Natural Resources about a project likely to consume more than 100 million gallons of water annually, the DNR may request information from the data center to assess the consumption's impact. Minnesota House Research – Act Summary, Chapter 12