Best states for AI data centers 2026

Say what you will about whether artificial intelligence is good for humanity. It is undoubtedly worth billions of dollars — and then some — to the states that can attract AI business.

AI is a massive consumer of electricity, water, computing power, and land. That puts some states in a much better position than others to host the AI revolution, despite having to contend with rising public opposition.

“Projects are getting bigger, they’re drawing more power due to AI and electrical needs, more natural resources,” said Tom Stringer of Stringer Site Selection and Incentives in New York. “So, finding the places that have land and the infrastructure that are required is really what our job has become in the last couple of years.”

CNBC has always rated states’ infrastructure as part of our America’s Top States for Business study. In this, the 20th year for the influential rankings, our methodology for the Infrastructure category includes multiple factors that are critical to support AI. They include abundant and inexpensive electricity, and the ability to deliver it in sufficient quantities for the most sophisticated computing. Also important: plenty of water, as well as state-certified, shovel-ready sites for development.

These ten states have the infrastructure to play a central role in the future of AI.

Tennessee

The Volunteer State is no Johnny-come-lately in the world of AI. In 2022, Tennessee established the multi-disciplinary AI Tennessee initiative at the University of Tennessee in Knoxville with a goal of making the state a leader in AI. This initiative is more than just a slogan or a think tank.

“AI Tennessee is aligning government, industry, and academic efforts across Tennessee,” the program’s website declares, “to ensure that AI contributes to growth in key economic sectors including nuclear energy and security, advanced manufacturing, agriculture and forestry, health care, and mobility.”

Tennessee is also developing the infrastructure to back that up. While not an electricity generating powerhouse, costs are reasonable and the system is steady. But where the state shines is in its water supply, including the Tennessee Valley Authority’s stewardship of it. The Tennessee River basin is one of the most heavily used in the nation, with some 8 billion gallons removed every day. But the TVA notes that 95% of that water is recycled.

2026 Infrastructure rank: No. 6 (Top States grade: A–)

Net electric power generation (2025): 72,442 kMWh (per capita rank: No. 7)

Average electricity price (2025): $0.1185/kilowatt hour

Maximum load for computing: 1,110 megawatts (No. 24)

Water availability score (CNBC calculated based on U.S. Geological Survey data adjusted for hydrologic region): 4 out of 4

Site certification program: Yes

Most powerful supercomputer: Frontier, Oak Ridge National Lab (global rank: No. 3)

Pennsylvania