In Data Center Alley, AI sows building boom, doubts

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As planes land at Washington Dulles Airport, there’s a town right underneath called Ashburn — better known as “Data Center Alley.” At any moment, about 70 percent of the world’s internet traffic passes through this small area in northern Virginia.

Years ago, this place was mostly empty land, forests, and fields. Then came the rise of the internet. Data center companies moved in, promising big tax revenue and investment. The buildings weren’t pretty, but they became the backbone of the online world.

Ashburn became the perfect spot for this boom. It’s close to Washington DC, the Pentagon, and what used to be AOL’s headquarters. It has strong infrastructure, business-friendly policies, and affordable power. All of that made it a magnet for data centers.

And the impact is huge. Around the massive gray buildings, you’ll find new shops, homes, parks, and even an ice rink. Money flows through the town. Ashburn sits in Loudoun County, the richest county in the United States.

Right now, Ashburn’s 40,000 residents live alongside 152 data centers spread across just 40 square kilometers (15.4 square miles). And more are on the way. The AI boom has kicked off a race to build even larger and more powerful data centers.

In 2025, private companies in the U.S. are spending around $40 billion every month on data center construction — a huge jump from just $1.8 billion a month ten years ago. Much of that money is from AI giants like Google, Amazon, Microsoft, and OpenAI.

AFP reporters recently toured a typical facility run by Digital Realty, which has 13 data centers in Ashburn.

“We provide the space, the power, the cooling, and the connectivity,” said Chris Sharp, the company’s chief technology officer.

Inside these buildings — which are normally off limits — rooms are filled with rows of powerful servers. Some rooms are dedicated to one client, while others are split into private “cages” for smaller companies. Everything we do online depends on servers like these.

AI has exploded the demand. Training AI models requires Nvidia-powered servers that are heavier than older equipment and use massive amounts of electricity. They also get extremely hot, so companies are shifting to advanced liquid cooling instead of regular air conditioning. Many data centers now also need heavy water usage for cooling.

This huge demand has created challenges.

“Just last year, data centers in Virginia used about as much electricity as the entire city of New York,” said Leslie Abrahams from the Center for Strategic and International Studies.

People living in Ashburn are feeling the boom too.

“Growing up, we saw a few data centers here and there, but not like this. They’re everywhere now,” said 24-year-old resident Makaela Edmonds. Her family’s home sits right next to a large construction site.

Another issue: data centers don’t create many long-term local jobs. Most employment happens during construction, with crews working nonstop. But once a facility opens, only a few people are needed to keep things running.

As a result, some local politicians in northern Virginia are now campaigning to slow down new construction — a big change from years ago when everyone was eager to attract more data centers.

Digital Realty and other companies say they’re trying to work closely with communities to explain the impact and prepare them for growth.

Because one thing is clear: the demand isn’t slowing down.

“The growth in this market is monumental,” Sharp said.