Google intends to allocate $9 billion in Virginia, which involves constructing a new data center and enhancing two current facilities in Northern Virginia, the world’s largest data center market, as it intensifies its emphasis on cloud and AI support systems.

The tech powerhouse will allocate the funds until the end of 2026 to support the establishment of a new data center in Chesterfield County and enhance essential facilities in Loudoun and Prince William counties, stated Virginia Gov. Glenn Youngkin.

Youngkin stated in a statement that as AI becomes more integrated into all areas of work, this project emphasizes our dedication to equipping Virginians for the future. Such investments not only enhance Virginia's cloud and AI infrastructure but also strengthen our initiatives to develop a future-ready workforce.

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Google's upcoming data center campus will be situated approximately 17 miles south of Richmond at 2700 Bermuda Hundred Road in Chester, according to Devon Smiley, a Google spokesperson, who informed CoStar News via email. Smiley chose not to provide additional information regarding the firm's intentions to grow the current sites.

Google is pouring millions into data centers as the demand for larger capacity and improved cooling methods surpasses supply. In North America, data center vacancy reached an unprecedented low, even with a record level of storage capacity, as indicated by a midyear report from JLL.

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According to JLL, overall vacancy across the continent has dropped to an all-time low of 2.3 percent, even as inventory hit a record 15.5 gigawatts. A significant portion of the new demand is driven by businesses wanting to enhance their AI and machine learning skills and abilities.