Texas Poised to Become World's Largest AI Data Center Hub by 2030

The Lone Star State is projected to surpass Virginia as the fastest-growing data center market in the U.S.

Apr. 3, 2026 at 8:09pm

Got story updates? Submit your updates here. ›

A highly detailed, glowing 3D illustration of a futuristic data center server rack, with illuminated circuit boards, fiber optic cables, and cooling systems, conceptually representing the technological infrastructure powering Texas' data center boom.As Texas emerges as the global epicenter of AI data center development, the state's infrastructure will be pushed to its limits to power the growing digital economy.San Antonio Today

Texas is on track to become the world's largest hub for AI data centers by 2030, according to a recent industry report. The state is expected to see a 142% increase in its share of the data center market through 2028, surpassing Virginia as the top location for new data center development in the U.S. Factors driving Texas' growth include abundant land, low power costs, and business-friendly regulations.

Why it matters

The rise of Texas as a global data center powerhouse has significant implications for the state's economy, infrastructure, and energy grid. As the demand for AI and cloud computing continues to skyrocket, the influx of data centers will bring high-paying tech jobs and investment, but also raise concerns about the industry's environmental impact and strain on local resources.

The details

Texas currently has 411 operational data centers, trailing only Virginia's 579. But industry projections show the Lone Star State surpassing Virginia by 2030 to become the world's largest data center hub. Factors fueling Texas' rapid growth include abundant land, low power costs that undercut other markets, and a business-friendly regulatory environment that outcompetes Virginia's 'Data Center Alley' in Loudoun County. Within Texas, Austin is emerging as the top destination for new AI data center construction, overtaking San Antonio and Houston due to its fiber optic infrastructure and power capacity.

  • Texas currently has 411 operational data centers, according to industry data.
  • By 2028, Texas is projected to see a 142% increase in its share of the data center market.
  • Texas is on track to surpass Virginia as the state with the biggest growth in data centers by 2030.

The players

JLL

A global commercial real estate services firm that conducted the analysis projecting Texas to become the world's largest data center hub.

Dan Patrick

The Republican Lieutenant Governor of Texas, who has cited data center regulation as a top priority for the state Senate ahead of the 2027 legislative session.

Got photos? Submit your photos here. ›

What’s next

As Texas continues to attract more data centers, state lawmakers are expected to focus on regulating the industry to address concerns over its environmental impact and strain on local resources. The 2027 Texas legislative session will likely see proposals to manage the data center boom.

The takeaway

Texas' emergence as the world's leading data center hub reflects the state's business-friendly climate and abundant resources, but also raises questions about the industry's long-term sustainability. Policymakers will need to balance the economic benefits with the environmental and infrastructure challenges posed by the rapid growth of data centers in the Lone Star State.