Optimal County-Level Siting of Data Centers in the United States

arXiv:2601.16315v1 Announce Type: new
Abstract: Data centers are growing rapidly, creating the pressing need for the development of critical infrastructure build out to support these resource-intensive large loads. Their immense consumption of electricity and, often, freshwater, continues to stress an already constrained and aging power grid and water resources. This paper presents a comprehensive modeling approach to determine the optimal locations to construct such facilities by quantifying their resource use and minimizing associated costs. The interdisciplinary modeling approach incorporates a number of factors including the power grid, telecommunications, climate, water use, and collocated generation potential. This work establishes the base model whose functionality is shown through several test cases focusing on carbon-free generation collocation on a county-level in the United States. The results suggest that while capital costs are the biggest driver, having a longer future outlook and allowing more variable generation collocation influences the model to choose sites with higher renewable potential.