Where Data Centers Get Built? Institutional Friction and the Spatial Logic of Compute Infrastructure in the United States

This policy brief examines how contemporary U.S. data center development patterns are shaped by differences in institutional feasibility rather than by technical or market factors alone. It argues that large-scale compute infrastructure is increasingly built where governance structures, permitting processes, and utility coordination allow rapid, low-friction deployment. To analyze this logic, the brief introduces the concept of the Infrastructure Friction Boundary (IFB)—a diagnostic framework for identifying jurisdictions where hyperscale data center projects can be accommodated under relatively low procedural resistance. The analysis highlights how institutional friction influences the spatial organization of compute infrastructure and explores the resulting governance implications, including long-term energy lock-in, fiscal dependence, and infrastructure–governance asymmetry. The brief contributes to ongoing policy discussions on AI infrastructure governance, regional development, and the institutional conditions shaping the next phase of compute-intensive growth in the United States.