Data center construction activity across the US Southeast accelerated sharply in early 2026 as hyperscale operators expanded capacity beyond the saturated Northern Virginia market, according to Data Center Knowledge analysis of active permits, announced projects, and campus expansion filings. Georgia, North Carolina, South Carolina, and Tennessee collectively account for 34% of total hyperscale data center construction starts tracked in Q1 2026, up from 21% in Q1 2024.
Georgia has attracted significant campus announcements, with projects in the Atlanta metropolitan area, Coweta County, and the northeast Georgia corridor near Athens. The state's combination of available land, relatively stable power grid infrastructure, and state-level incentive programs including Direct Pay exemptions on equipment purchases have made it a preferred expansion destination for major technology operators.
North Carolina's Research Triangle region continues to draw new data center entrants, with at least four new campus permits filed in Wake and Durham counties in Q1 2026. The region's access to Duke Energy's transmission infrastructure and proximity to financial services and life sciences enterprise customers support ongoing demand.
Power procurement remains the primary constraint on Southeast expansion velocity. Utility interconnection queues in Georgia Power's service territory show 18 to 24 month timelines for large-load service connections. Several developers have engaged directly with Georgia Power on expedited large-load programs, and at least two campuses are pursuing dedicated substation construction as part of land development agreements.
Source: Data Center Knowledge -- https://www.datacenterknowledge.com/hyperscale/southeast-data-center-expansion-pipeline-2026