Texas on Track to Become the World's Premier Data Center Hub by 2030
A groundbreaking report from Jones Lang LaSalle (JLL) reveals that Texas is rapidly advancing to overtake Virginia as the global leader in data center markets by 2030. This shift is fundamentally reshaping the landscape of US digital infrastructure, as detailed in JLL's North America Data Center Report – Year-End 2025.
Massive Investments Fueling Texas's Rise
Tech behemoths including Amazon, Microsoft, Google, and Meta are projected to allocate over $600 billion in 2026 alone for expanding AI infrastructure. This unprecedented surge in demand for data centers is driving a nationwide construction boom, with more than half of all new US data center projects now emerging outside traditional hubs. Key emerging markets include Tennessee, Ohio, Wisconsin, and notably, Texas.
Texas's Unmatched Pipeline and Energy Capacity
Texas boasts an impressive 6.5 gigawatts of data center capacity currently under construction, representing approximately one-fifth of the entire US pipeline. To illustrate this scale, this capacity is equivalent to the output of more than three Hoover Dams or the energy required to power 17,000 Tesla Model 3 vehicles. Nationally, the US pipeline totals 35 gigawatts, nearly doubling existing capacity and matching the annual electricity consumption of countries like the United Kingdom or Italy.
Major Tech Projects Anchoring Texas's Appeal
The state is home to some of the most ambitious data center initiatives globally, such as:
- Oracle and OpenAI's Stargate data center in Abilene, which includes its own dedicated power plant.
- Google's $40 billion expansion project in West Texas.
- Meta's extensive new facility in El Paso.
Texas's attractiveness stems from its abundant energy resources, vast land availability, and favorable tax incentives. These factors are crucial as AI-driven electricity demands increasingly strain the national power grid.
Shifting Dynamics in the Data Center Industry
While Virginia has long been synonymous with the early cloud computing era, Texas is now strategically positioning itself as the new global capital for data centers. With billions of dollars in investments and extensive infrastructure developments underway, the state is set to play a pivotal role in powering the next generation of AI and digital services. However, Wall Street analysts caution that the sheer scale of these investments could signal a potential AI bubble, highlighting the need for careful monitoring of market trends.
This transformation underscores a significant evolution in how digital infrastructure is distributed across the United States, with Texas emerging as a central player in the global data economy.
