Shepherd Strategies

For companies looking to enter the U.S. data center market, Shepherd Strategies recommends:

-Protect your intellectual property, complete patent and trademark applications and always keep innovating
-Complete mandatory government registrations: SAM.gov and state/federal licenses to access incentives and contracts.
-Engage strategic partners: utilities, contractors, and economic development agencies.
-Target federal projects: focus on federal initiatives and directives - do your homework on what the government is buying.
-Choose strategic locations: prioritize emerging and cost-effective states and pursue economic development funding before determining your ultimate headquarters.
-Operate strategically: evaluate and tackle NIMBY risks to reduce financial exposure.
-Leverage technology differentiation: photonics, advanced cooling, and energy-efficient systems will create more long-term wins in the data center space.

The U.S. currently has over 4,100 data centers, with the largest concentrations in Virginia (663), Texas (408), and California (320). However, the Midwest continues to develop more data centers due to recent investments in broadband combined with their traditionally reliable infrastructure, cost-effectiveness, and business-friendly policies. This growth in the Midwest is supported by the U.S. Department of Energy's strategic announcements on data center hubs nationwide:

DOE Identifies 16 Federal Sites Across the Country for Data Center and AI Infrastructure Development Energy Secretary Chris Wright acts to strengthen America’s energy dominance and leadership in artificial intelligence by leveraging federal land and assets