Texas emerges as world's future data center capital

Texas is emerging as the global hub for data centres, overtaking Virginia in the US digital infrastructure race. According to Jones Lang LaSalle (JLL), the Lone Star State is on track to become the world’s largest data market by 2030.

According to Business Insider, technology companies Amazon, Microsoft, Google, and Meta are set to invest more than $600 billion in 2026 on AI infrastructure, leading to an unprecedented demand for new data centres in the state.

Texas leads data centre boom

JLL's North America Data Center Report, Year-End 2025, shows more than half of all new US data centre construction is now happening outside traditional hubs. Tennessee, Ohio, Wisconsin and especially Texas are emerging as key markets.

Texas alone has 6.5 gigawatts of data centre capacity under construction, roughly one-fifth of the US pipeline. This is equivalent to the output of three Hoover Dams or the energy needed to power 17,000 Tesla Model 3s.

Nationwide, the US pipeline of 35 gigawatts nearly doubles current capacity, matching the annual electricity consumption of the UK or Italy.

The attraction of Texas is based on its energy resources, landmass, and tax incentives that make it business-friendly. These are important considerations, especially when the energy demands driven by AI are straining the power grid in the country.

Wall Street analysts have warned that the scale of investment could signal an AI bubble, but the growth is an indication of the state’s increasing power in the digital age.