Texas could surpass Northern Virginia to become the largest data center market in the world by 2030, according to a report from commercial real estate firm JLL.
The report highlights the state’s abundant energy resources, available land, and business-friendly environment as major factors driving rapid data center development.
“We are in a development super cycle,” said Curt Holcomb, vice chairman of data center solutions at JLL. “We’ve never seen development of this asset class like this ever.”
Rapid Growth Across Texas
While Texas currently ranks fourth globally, behind Northern Virginia, the Pacific Northwest, and Columbus, Ohio, growth across the state is accelerating.
The Dallas–Fort Worth area remains the largest data center hub in Texas, but Houston and West Texas are expected to see significant expansion in the coming years.
Energy availability remains a key challenge as utilities and ERCOT work to expand power capacity to meet growing demand.
Energy and Infrastructure Driving Expansion
Texas accounts for nearly one-third of the planned U.S. data center buildout, with about 80.6 gigawatts of gas-fired power capacity in development, according to Global Energy Monitor. Nearly half of that capacity is expected to power data centers directly.
Developers are also exploring a mix of natural gas, wind, solar, and other energy sources to support the growing demand for computing power.
Major technology companies are investing in Texas. For example, Google partnered with Fort Worth and San Francisco-based TPG Rise Climate to develop new data center capacity powered by clean energy.
Economic Impact for Communities
Data centers bring significant capital investment and tax revenue to local communities, even though they typically employ relatively small workforces.
For instance, Edged Data Centers has proposed a $1.1 billion facility on a 186-acre site in Fort Worth, which received local tax incentives to support development.
According to Holcomb, data centers have become more environmentally efficient, with modern closed-loop cooling systems reducing water use to about 10–15% of previous levels.
Overall, industry analysts expect Texas’s combination of energy resources, infrastructure, and pro-business policies to position the state as a global leader in data center development.
Source: Bob Francis, Fort Worth Report
https://fortworthreport.org/2026/03/08/bob-on-business-texas-expected-to-be-worlds-largest-data-center-market-by-2030/