AI Triggers Data Center Alley Boom as Doubts Surface

As planes descend toward Washington DC’s Dulles Airport, they pass over Ashburn, Virginia — better known as Data Center Alley, where an estimated 70% of the world’s internet traffic flows at any moment. Once a landscape of empty lots and farmland, Ashburn has transformed over the past few decades into the world’s most important hub for digital infrastructure.

The growth began with the rise of the internet and companies like AOL, followed by a wave of data center builders attracted by the town’s strategic location, reliable power, fiber connectivity, business-friendly policies, and proximity to U.S. government agencies. Today, Ashburn — part of Loudoun County, the wealthiest county in the U.S. — has 152 operational data centers packed into just 40 square kilometers, with more under construction.

This development has brought undeniable economic benefits: new residential neighborhoods, shops, public facilities, and major tax revenue. Yet it has also turned Ashburn into a global symbol of both opportunity and caution as communities worldwide eye data centers as engines of growth.

The boom is now accelerating again due to the massive rise of artificial intelligence. In 2025, private companies are investing nearly $40 billion per month into U.S. data center construction — compared to only $1.8 billion a decade ago — driven largely by AI giants such as Google, Microsoft, Amazon, and OpenAI.

A typical data center hosts thousands of servers that run everything from websites to AI applications. But today’s AI systems require enormous power, advanced cooling, and heavier GPU-powered hardware. This demand is forcing the construction of bigger, stronger, energy-intensive facilities, often requiring significant water resources for next-generation liquid cooling.

Industry experts note the scale of this consumption: in Virginia alone, data centers used as much electricity last year as all of New York City.

But the boom comes with local tensions. Residents say data centers are now “popping up everywhere,” often adjacent to suburban homes. Jobs created during construction disappear once the centers go operational, leaving massive buildings with minimal staff. Analysts say the benefits are mostly regional and global, not local.

This has led to a shift in local politics. Instead of competing to attract more projects, some northern Virginia leaders now campaign on slowing or restricting further expansion due to concerns over noise, power grid strain, water usage, and visual impact.

Yet industry players remain confident. According to Digital Realty, one of Ashburn’s major operators, “the growth and demand in this market is monumental.” Despite doubts and local pushback, AI’s explosive expansion ensures that the race to build more data centers continues at full speed.