Data Center Readiness
Data center site selection by state
50 states ranked on data center permitting, power availability, tax incentives, and network latency.
Data Center Readiness
50 states ranked on data center permitting, power availability, tax incentives, and network latency.
Industry context
Against this backdrop, here's where 50 states rank on raw build-suitability.
$64B
US data center projects blocked or delayed by organized opposition
Data Center WatchMay 2025
47 / 50
states with active AI / data-center legislation in 2025–26
DataCenterTracker.orgApr 2026
4 active + 13 advancing
state and local moratoriums or proposed bans
DataCenterBans.comMay 2026
11 GW
largest single project in development (Hypergrid, Amarillo TX)
OrenniaFeb 2026
Data Center Readiness Index v1
Texas holds the top spot. Alaska sits last. The Index measures friction in the raw operating environment, not existing market footprint.
Overlay markers
Key findings
Texas, Oregon, and Illinois lead the index. Each for a different reason. Texas wins on the supply side, with strong energy generation, deep interconnection queues, and a top-tier workforce. Oregon is the most balanced state in the country, leading on economic climate and clean across grid, water, and community opposition. Illinois posts the highest composite score in the country, strong on grid reliability, workforce depth, and permitting clarity. The top of this index is not a single archetype.
The gap between readiness and capital is visible at the top of the table. Texas ranks first, but is at the bottom of the index on water supply, a constraint it shares with Arizona. Virginia, the country's largest active data-center market, sits tenth and trails the field on grid reliability and energy supply. Georgia, fifth on the composite, is weak on grid and water. The states drawing the most construction capital are not, on the operating environment, the strongest places to host it.
Hawaii, Alaska, and South Carolina close the ranking. Hawaii and Alaska are constrained by isolated grids; Alaska posts the weakest energy and grid-reliability scores in the country. South Carolina sits at 48th despite often being grouped with other Sun Belt growth markets: its permitting environment is at the bottom of the index, tied with Kentucky. The index is not a forecast of where data centers will be built. It is a read of raw operating- environment quality, and the gap between the two is the story.
The gap
X = Data Center Readiness Index composite (higher = better build environment). Y = actual MW commissioned + under-construction. Spearman ρ = 0.73. Hover any dot for the full read.
Data tier 3 · Hand-curated from publicly-cited JLL/CBRE/Synergy 2024 figures.
Leaderboard
Stacked dimensional rank scores sum to the composite. Long color bands = strength; short ones = weakness.
Top 10
Bottom 10
State profile
Pick any state to see its rank, dimensional shape vs. the national median, top strengths and weaknesses, and on-the-ground signals.
State
Texas
TX
Data Center Readiness Index rank
#1
of 50
Top Quartile
Build capacity
1200MW
commissioned + UC
Dimensional shape
vs. national median
Top strengths
Binding constraints
What's happening on the ground
Legislation
DataCenterTracker.org · Apr 2026AI governance framework, deepfake criminalization, government AI standards (7 bills signed)
Moratorium
DataCenterBans.com · May 2026None; 8 favorable / incentives states include TX
Opposition
Data Center Watch · May 2025Moderate
Pipeline
Orennia · Feb 2026Hypergrid 11 GW (Amarillo, Fermi America); Project Jade 10 GW (Crusoe + Tallgrass)