A Hidden Hub of Growth: Data Centers in Virginia’s ‘Data Center Alley’ Projected to Drive $1 Trillion AI Market by 2027
Where Farmland Meets Cutting-Edge Technology
Just outside Washington, D.C., in a lesser-known suburb, a significant commerce center is taking shape. It is anticipated to unlock a $1 trillion market by 2027, according to Bain and Co.
This transformation is taking place in an area once known for its farms, now evolving among rolling hills dotted with horse farms and wineries.
Business is thriving here, yet passing through the neighborhood offers little indication of this growth.
On the surface, the buildings resemble regular warehouses.
However, they are secured with tight measures.
Inside lies the potential path of the future, driven by the Artificial Intelligence boom.
Welcome to “Data Center Alley” in Loudon County, Virginia, located just a two-hour drive from our InvestorPlace headquarters. This area is home to 133 of the 471 data centers in Virginia, the state with the highest number of data centers in the U.S.
Data centers are crucial; local power supplier, Dominion Power, reported that they now account for 24% of the company’s total electricity sales in Virginia.
The Essential Role of Data Centers
Why are data centers vital? The answer encompasses more than you might think.
These facilities provide the computational power, storage space, and networking necessary for AI to train and run models effectively. They form the backbone supporting social media platforms, navigation apps, and ride-hailing services.
Northern Virginia has earned the title of data center capital, recognized not just as the largest market in the U.S. but globally.
What Does Trump’s Administration Mean for the AI Sector?
The business world watched as tech executives quickly reached out to congratulate Donald Trump following his decisive victory over Vice President Kamala Harris.
Apple CEO Tim Cook took to X to express his support:
Meta’s CEO Mark Zuckerberg also shared his sentiments on Instagram:
Despite a rocky history with big tech, Trump has made clear his ambition for the U.S. to lead globally in AI development.
In his first term, he focused on countering China’s advancements in AI technology.
Trump’s Policies Could Spark a New AI Investment Surge
Anticipated Shift in AI Regulation Under a Potential Trump Administration
As tensions rise over AI chip access, the potential for a renewed trade war looms between the U.S. and China. Donald Trump has declared plans to overturn Biden’s Executive Order aimed at regulating AI technologies. He vowed to eliminate restrictions on AI that could hinder free speech among Americans.” On his first day in office, he promises to take action to foster a more flexible AI landscape.
The Center for AI Policy, a nonpartisan organization focused on AI governance, released a statement indicating that a Trump-led administration might prioritize industry self-regulation over government control, which has characterized the Biden Administration.
AI has driven recent market trends, suggesting a tendency for continued momentum. Notably, investment expert Louis Navellier foresaw earlier this year that Trump’s return to power could significantly influence the financial landscape when he stated:
While the stock market is roaring right now…
It’s just a preview of what’s to come when Trump is re-elected.
Because Donald Trump is all about business.
And when he returns to the Oval Office, his first act could be rocket-fuel for an already hot market.
Examining Trump’s Role in the Rise of Artificial Intelligence
Navellier references several crucial actions taken during Trump’s first term that contributed to the current AI boom. He highlights Trump’s 2019 Executive Order, which initiated a regulatory framework for AI and led to a doubling of investment in AI research. This order, Executive Order 13859, titled Maintaining American Leadership in Artificial Intelligence, kickstarted significant advancements in the sector.
Notably, EO 13859 played a vital role in making government data accessible for machine learning applications. This very data has been pivotal for training Large Language Models, such as the one powering ChatGPT. Moreover, Trump’s commitment to expanding access to data positioned OpenAI, the creator of ChatGPT, to secure $1 billion in funding from Microsoft in 2019.
Navellier has consistently observed trends in AI, entering positions ahead of market waves. In his Growth Investor newsletter, he recommended Nvidia (NVDA) back in 2019, a decision that has seen the company’s stock soar 30 times in value since then.
Currently, Navellier anticipates another explosion in AI stock prices with the possibility of a Trump presidency. He identifies six AI stocks poised for growth, with the narrative primarily unfolding in a small suburb in Northern Virginia.
This region is crucial because the flourishing of AI demands increased data centers and enhanced power resources. Trump aims to secure America’s leadership in AI technology, suggesting that investors who align with these trends could achieve considerable returns. However, selecting investments carefully remains critical.
Navellier offers insights into navigating this landscape through his Growth Investor service.
Enjoy your weekend.
Luis Hernandez
Editor in Chief, InvestorPlace
