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What Really Determines Where Data Centers Get Built | Switched On

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February 25, 2026

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The geography of data center development is being redrawn at speed. BloombergNEF is tracking nearly 23 gigawatts of new capacity under construction worldwide, as AI and cloud workloads drive the next phase of digital infrastructure growth. But siting decisions are becoming more complex. Energy availability and land permitting now dominate, while taxes, fiber connectivity and existing ecosystems still shape competitiveness. As AI demand scales and ambitions grow, regions from the Nordics and Iberia to the Middle East and Latin America are positioning for the next wave. So which markets are best placed to win, and what really determines where the next gigawatt gets built? On today’s show, Tom Rowlands-Rees is joined by Lloyd Arnold, an analyst from BNEF’s technology and innovations team, to review findings from their note “Data Center Development: Regional Drivers and Hurdles.”

Complementary BNEF research on the trends driving the transition to a lowercarbon economy can be found at BNEFGO on the Bloomberg Terminal or on bnef.com ()

Links to research notes from this episode:

Data Center DevelopmentRegional Drivers and Hurdles ()

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The future of energy, transport, sustainability and more, as told by BNEF analysts. Each week, Dana Perkins and Tom Rowlands-Rees sit down with BloombergNEF (BNEF) analysts to uncover the key findings and stories behind their latest research.

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Guests & Subjects Covered

As AIMiddle EastLatin AmericaTom Rowlands-ReesLloyd ArnoldHurdles Complementary BNEFBloomberg TerminalDana Perkins

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What Really Determines Where Data Centers Get Built | Switched On · Bloomberg Podcasts · Sentinel