PPPs, new hotspots define the next phase of AI infra: KPMG

Home AI Infrastructure News PPPs, new hotspots define the next phase of AI infra: KPMG
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Phil Wong, partner at KPMG, told RCR Wireless News that companies investing in AI infrastructure must balance speed, cost, and coordination

In sum – what to know:

Policy accelerates AI buildout – Federal programs and Department of Energy actions are expediting land access and permitting to keep the U.S. at the forefront of global AI infra growth.

States compete for data hubs – Local governments offer tax breaks, power access, and fast-track permits, fueling new construction in emerging regions like Kentucky, Kansas City, and Texas.

Private capital follows incentives – Developers are racing to deploy facilities quickly to capture demand, with cost, energy availability, and logistics now defining success in the next phase of AI expansion.

Public-private partnerships (PPPs) and local incentives are emerging as key drivers of the next phase of AI infrastructure expansion in the United States, as both federal and state governments compete to attract large-scale investments in data center construction, Phil Wong, partner at KPMG, told RCR Wireless News.

“With the current administration, there’s a lot of focus on making sure the U.S. maintains its lead in AI,” Wong said. “Whether it’s the core research, the advances in frontier models, or the usage of AI, there’s a lot of attention at the federal level to drive and incentivize the deployment of large data centers.”

He also pointed to recent actions by the Department of Energy to accelerate permitting and land access.

States and municipalities are also taking a proactive role. “Certain jurisdictions are providing incentives or tax relief, or ensuring that permitting and local communities support the building of data centers,” Wong said. He emphasized that both federal and local incentives are now critical for keeping the U.S. competitive in AI development and deployment.

On the private side, companies investing in AI infrastructure must balance speed, cost, and coordination. “During the construction phase, given the complexity and scale of a lot of these projects, just keeping track of costs, timing, and coordinating all these different parts — whether it’s connectivity, access to energy sources and utilities, or the materials showing up at the site — is a huge challenge,” Wong explained. “The sooner you can outfit a data center and put it online, that’s where the revenue comes.”

As for geography, Wong said the U.S. data center map is rapidly evolving, noting growing participation from Kentucky, Kansas, and Texas. States such as Indiana and West Virginia are also emerging due to power access, available land, and supportive local policies, he added.

“A lot of local jurisdictions also recognize they have access to land and power,” Wong concluded. “It’s a good opportunity to attract new construction activity and create jobs within local communities.”

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