Trump’s recent announcements to advance investment in AI infrastructure, means data centers, power sources, and other supporting underpinnings will be mission critical. Just days into his second term, data centers have gained notable attention, with the announcement of “Stargate,” underscoring the administration’s support for the industry.
The Stargate initiative will impact the development of data centers—already a commercial real estate (CRE) property-type darling—as plans unfold to build as many as 20 immense data centers across the country to meet the processing power needs of AI systems. The President described the project as “the largest AI infrastructure project, by far, in history,” emphasizing its potential to redefine the industry and U.S. leadership in AI.
Trump’s endorsement of data center investment, coupled with executive actions and policy shifts, is poised to have widespread implications in the CRE sector, fuel local economic growth, and spark discussions about energy use and sustainability in the rapidly expanding tech infrastructure landscape. As the demand for data infrastructure grows, the Trump administration’s focus on energy independence and infrastructure development is paving the way for unprecedented expansion.
AI Fueling Data Center Growth in Key Markets
The importance of data centers in the U.S. has grown significantly over the years, fueled by advancements in artificial intelligence, the surge in cloud computing demand, and the need for large-scale data processing.
Amazon Web Services (AWS) recently pledged $11 billion to expand its data center infrastructure across two Georgia counties, a move expected to create approximately 550 jobs while driving local economic growth. Georgia, particularly the southern metro Atlanta region, has emerged as a hotbed for data center developments, drawing significant investment and generating substantial tax revenue for communities.
Other parts of the country are also experiencing a data center boom. In North Dakota, Applied Digital is developing the Ellendale High-Performance Computing data center campus, an initiative supported by up to $900 million in investment. Similarly, Dallas-based Provident Data Centers and Virginia-based PowerHouse Data Centers have launched a joint venture to build a massive, hyperscale-focused campus in Dallas-Fort Worth. Spanning 768 acres, the project is set to leverage 500 megawatts of power initially, with plans to scale up to 1.8 gigawatts at full build-out, making it one of the largest data center campuses in the U.S.
These investments underscore the alignment between growing AI demands and the administration’s efforts to accelerate development, particularly in regions with untapped economic potential.
Trump’s Energy Emergency Declaration to Boost Data Center Development
While new projects are emerging nationwide, a key challenge for data center developers is securing reliable energy sources and the Trump administration has aligned this need with its focus on expanding fossil fuel power generation. Following the announcement of Stargate, President Trump declared a “national energy emergency,” aimed at accelerating fossil fuel projects and streamlining approvals for pipelines and generation facilities. While the order does not directly reference data centers, industry experts believe it will fast-track the development of natural gas plants and increase grid capacity, critical for powering large-scale data centers.
By making energy production easier for developers, the administration’s policies could open up new regions for data center construction, removing energy bottlenecks that have slowed growth. Trump has pledged to provide “rapid approvals” for projects that pair data centers with dedicated natural gas plants, a growing trend in the industry. Meta’s recent $10 billion announcement for a massive data center campus in Richland Parish, Louisiana, spanning over 4 million square feet is an example of this trend. To power the facility, Meta is partnering with Entergy to construct a 1.5-gigawatt natural gas power plant on-site, with two additional plants elsewhere in the state.
By supporting co-developed data centers and power plants, the Trump administration’s policies aim to eliminate energy bottlenecks, open new regions for development, and accelerate construction timelines—reshaping commercial real estate and solidifying the U.S.’s leadership in AI infrastructure. “From a CRE perspective … it will help provide energy much faster,” Ermengarde Jabir, director of Economic Research at Moody’s said. “It also really opens up the possibilities for site selection on a far greater expanse of land.”
The Ripple Effects of Large-Scale Data Center Investments
Large-scale data center construction projects have far-reaching impacts on the CRE market and local economies. These developments often require significant acreage in strategic locations, particularly areas with reliable power sources and advanced connectivity infrastructure. This demand for land can drive up property values in targeted regions, creating new opportunities—and challenges—for real estate investors and developers.
In addition to land demand, these projects bring substantial economic benefits to their host communities. The construction phase alone generates jobs and stimulates local economies, often boosting demand for nearby commercial and residential properties. AWS pledged to create more than 1,000 new jobs in Ohio as part of its most recent $10 billion investment in expanding its data center operations in the state. In addition to job creation, data center development drives significant economic growth by improving local infrastructure, such as utilities, roads, and internet connectivity, which can make surrounding areas more attractive for additional real estate development.
The rise of data centers also influences broader market dynamics. As these facilities become increasingly prominent, regions with the necessary infrastructure to support them may experience a shift in market focus, drawing interest away from traditional office or retail spaces. Meanwhile, the industry’s growing emphasis on sustainability and energy efficiency is driving demand for renewable energy projects and green real estate developments, creating new intersections between technology and environmentally conscious design.
The Trump administration’s policies aim to amplify these ripple effects, encouraging development in underutilized regions and accelerating construction timelines by addressing energy constraints.
Broader Implications and Challenges
While the benefits of data center expansion are clear, the industry also faces significant challenges. Environmental groups have criticized the administration’s approach to deregulation, particularly the potential waiving of protections under the Clean Water Act and Endangered Species Act. Critics argue that this prioritization of fossil fuels over renewables could lead to long-term sustainability issues.
Additionally, the race to build data centers at scale risks oversaturating certain markets, potentially driving up energy consumption and straining local grids. Developers must carefully balance growth with the need for reliable and sustainable infrastructure.
While challenges remain, the Trump administration’s focus on data centers and energy infrastructure has sparked a transformative shift in the U.S. CRE market, to help keep the U.S. competitive in the AI global market. For CRE professionals, understanding and adapting to these trends will be crucial to capitalizing on this rapid evolution.
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