Yes, data centers are being built in states with low electrical costs

I fired up Claude below to show which states are top dog as destinations for data center construction.

The four denoted states above are the undisputed top U.S. data center markets by installed capacity (per CBRE's 2025 rankings):

Virginia (17¢/kWh) — Northern Virginia / Loudoun County is by far the world's largest data center market, housing roughly 35% of all U.S. hyperscale capacity. Relatively moderate power costs help.

Texas (16¢/kWh) — Dallas-Fort Worth is the #2 U.S. market, driven by abundant land, a deregulated energy grid, and no state income tax. The ERCOT grid also gives operators more flexibility.

Illinois (19¢/kWh) — Chicago ranks #3, benefiting from central fiber connectivity, cool climate (reducing cooling costs), and access to the Great Lakes for water cooling.

Georgia (15¢/kWh) — Atlanta is the fastest-growing major market, fueled by comparatively low power costs, a favorable regulatory environment, and strong state tax incentives.

One notable takeaway: three of the four top markets sit at or below the 19¢ national average — a reminder that electricity price is a primary site-selection factor for data center operators, who can spend tens of millions annually on power at a single facility.