By Chris Adams

As we move through the second quarter of 2025, data centers remain strongly in the forefront of economic conversation and investment. Sector activity and investment will be marked by several key factors: established markets reaching peak capacity, changes in local regulations, and the growing trend of onshoring both data and operational infrastructure. 

Demand for AI technology continues to grow exponentially, influencing both the speed and long-term flexibility requirements of data center infrastructure. This demand, coupled with the capacity constraints of established markets like the Bay Area and Northern Virginia, is driving significant interest and investment toward emerging domestic markets. 

As investors, hyperscalers, and other data center partners shift focus to emerging domestic markets such as Nevada, Georgia, Arizona, and Texas, project leaders must prepare for the unique challenges these regions present, while staying attuned to broader trends shaping the sector nationwide. 

Power and grid capacity: The rapid development and evolution of data centers requires vigilant assessment of near-term and long-term power capacity. While data center design has matured and reduced many previous demands for natural resources, grid infrastructure in many markets remains inadequate. Our earlier blog examined this issue in depth. Investors, leaders and governing bodies in these regions should proactively consider bridging strategies and alternative power generation solutions to support sustained development.  

Labor availability and placement: Domestic labor factors differ significantly by region. Though rural markets offer more affordable and expansive real estate, as well as tax incentives, investment often requires bringing in specialized project delivery teams who command premium rates for working in remote environments. Simultaneously, the surge in highly technical construction projects (such as data centers and advanced manufacturing facilities) has created stiff competition for specialized labor, impacting even robust economic hubs like Phoenix and Atlanta. 

Global impact on resources and materials: Ongoing tariff fluctuations and shifting economic conditions are expected to impact delivery timelines for data center projects. Established players in the sector typically have their own procurement strategies and long-term material pipelines in place, providing them with built-in buffers against supply chain disruptions. In contrast, new entrants to the market will need to adopt a strategic project delivery plan and implement value engineering wherever possible to remain competitive. 

Data sovereignty and security: The broader movement toward onshoring American industry extends to data, particularly information related to healthcare and financial sectors. Entities holding sensitive data are increasingly investing in their own data center ecosystems to not only safeguard client and consumer data, but also their own intellectual property, alongside supporting their AI-driven initiatives. Project leaders need to understand the nuances of each client’s data sovereignty requirements and how other factors such as grid reliability, speed of delivery, and labor specialization impact site selection and design decisions. 

At Cumming Group, we are working with numerous data center clients as they move into new markets and set ambitious benchmarks for scale and delivery amidst these changing economic and sector conditions. Our deep bench of experienced project and cost managers, schedulers, and in-house MEP experts help hyperscalers and other established developers augment critical labor needs, while providing newer clients with the certainty and expertise needed to enter the market with confidence.  

Our diverse sector experience allows us to identify multiple project delivery strategies and adaptive delivery methods for every client and project, ensuring both project success and long-term partnership.  

About the Authors

Chris Adams

Chris Adams is a senior leader in the global data center space, serving as Managing Director at Cumming Group, an international building consultancy with deep expertise in mission-critical infrastructure. He leads a team of over 40 professionals supporting a confidential hyperscale client, delivering high-performance data centers optimized for cost, efficiency, and operational resilience.

His expertise spans the full project lifecycle—from early-stage planning and procurement through project controls, scheduling, and delivery—making him a key voice on reducing cost and mitigating risk at every phase of development.