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2026-edition-square-300x259Since the initial publication of the Pillsbury Guide to Data Centers in 2025, the market has continued to evolve—most notably with respect to power availability, energy strategy, tax and incentives planning, and investment activity across the sector. While many of the legal, commercial and regulatory frameworks addressed in the original Guide remain durable and relevant, recent developments warranted targeted updates and additions.

The 2026 edition expands and updates our energy-focused content to reflect the increasingly central role of power procurement, interconnection and long-term energy strategy in data center development. We have incorporated new materials addressing power purchase and interconnection agreements, solar and other renewable energy solutions, advanced reactor designs, and nuclear-powered data centers projects, including an updated project tracker. We have also added new analysis covering state and local tax considerations and incentive structures relevant to data center development and operations, as well as current M&A and private equity trends shaping investment in the sector.

The updated Guide is designed to provide a current, practical view of how data centers projects are being structured, financed, incentivized and executed today—and where the market is headed next.

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By one count, worldwide there were some 11,800 data centers in early 2024. Within that census are facilities so small that they fit in office building closets, while others are among the largest manmade structures on the planet. How are we to make sense of this diverse population?

Data centers house servers, storage devices and network devices to store, process and disseminate large quantities of data of organizations and their customers and supply chains. The size and complexity of these facilities vary with their functions in the business ecosystem. Much like the well-known depictions of the evolution of horses from tiny brush creatures to mighty stallions, the overall category cries out to be broken down along multiple dimensions.

This post provides a naturalist’s field guide to data center types and features.

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