Texas Set to Become World's Largest Data Center Hub by 2030
Texas is projected to surpass Virginia as the world's largest data center market by 2030, according to new research from Jones Lang LaSalle. This shift reflects a significant reshaping of the US's digital infrastructure map, primarily driven by substantial investments in AI infrastructure.
Texas is projected to surpass Virginia as the world's largest data center market by 2030, marking a significant reshaping of the US's digital infrastructure.
The AI Infrastructure Boom Fuels New Hubs
Major technology companies, including Amazon, Microsoft, Google, and Meta, are planning to invest over $600 billion in AI infrastructure expansion by 2026. This monumental investment is leading to a geographic dispersion of data center construction. Over half of all US data center construction is now occurring outside traditional hubs, with Tennessee, Ohio, Wisconsin, and Texas emerging as top markets.
Texas's Gigawatt-Scale Growth
Texas currently has 6.5 gigawatts of data center capacity under construction, representing approximately one-fifth of the 35 gigawatts of data center capacity added to the US pipeline. This 35 gigawatts is roughly equivalent to the annual electricity consumption of the UK or Italy. It would also nearly double the existing data center capacity in the US.
The 35 gigawatts of data center capacity added to the US pipeline is roughly equivalent to the annual electricity consumption of the UK or Italy, and would nearly double the existing data center capacity in the US.
Land, Power, and Key Projects Draw Tech Giants
The state's appeal to data center developers stems from its extensive land availability and abundant energy resources.
Notable projects highlight this trend: Oracle and OpenAI are developing the Stargate data center in Abilene, Google has a planned $40 billion expansion in West Texas, and Meta is establishing a new site in El Paso. Many of these Texas data centers, including Stargate, are being developed alongside on-site power plants to meet the increasing electricity demand from AI operations.
Shifting from Traditional Hubs: The Post-Virginia Era
Northern Virginia has historically been the primary data center hub for over 15 years. However, Big Tech companies are now dispersing across the country in pursuit of available power, affordable land, and favorable tax incentives for new AI data centers.