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Data Center Expansion Drives Rural Land Rush and Infrastructure Concerns Across the United States

The rapid expansion of artificial intelligence data centers is driving a significant land rush in rural America, with investments in future data center sites reaching approximately $6 billion in the first half of 2026. This represents a 79% increase from the previous year and accounts for 27% of all development sites in the United States this year. Data center operators are increasingly competing for land with reliable access to regional power grids, leading to skyrocketing property values in areas like Northern Virginia and the Northeast, where site costs have exceeded $8 million per acre. This high demand often outpaces the budgets of home builders, who are constrained by what homebuyers can afford. While the boom offers economic opportunities, many local communities are experiencing pushback. Residents express concerns regarding the strain on water and energy infrastructure and potential increases in electricity rates. In response, several states are considering or implementing moratoriums on new developments. For example, Governor Kathy Hochul issued a moratorium on new hyperscale data centers in New York for up to one year. In Michigan, local officials have faced personal pushback, with township clerk Kelly Marion reporting that board members received death threats over a new multibillion-dollar project.

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