This US state could be the new data center capital of the world by 2030

Texas is poised to become the leading hub for data centers, potentially overtaking Virginia by 2030, according to recent findings from Jones Lang LaSalle. This shift highlights the significant transformation of the United States' digital infrastructure landscape, driven by a booming demand for data center development. Tech giants such as Amazon, Microsoft, Google, and Meta are projected to invest over $600 billion in AI infrastructure by 2026, raising concerns on Wall Street about a possible AI bubble. Notably, more than half of all new data center constructions in the U.S. are occurring outside traditional markets, with Tennessee, Ohio, Wisconsin, and Texas emerging as key players. Texas is currently home to 6.5 gigawatts of data center capacity under construction, an amount comparable to the collective power output of over three Hoover Dams or approximately 17,000 Tesla Model 3 vehicles, based on data from the U.S. Department of Energy. This capacity contributes to a total of 35 gigawatts being added to the U.S. data center pipeline, which is roughly equivalent to the annual electricity usage of either the UK or Italy, effectively doubling the current national data center capacity. One of the state’s key advantages is its vast size and resources. Texas boasts some of the most ambitious data center projects in the nation, including Oracle and OpenAI's flagship Stargate facility in Abilene, a planned $40 billion expansion by Google in West Texas, and a large new site being developed by Meta in El Paso. The state’s energy resources are particularly attractive to data center developers as the surge in AI demand has heightened electricity needs, placing strain on the national power grid. Many data centers, including Stargate, are being constructed with on-site power plants to meet this demand. For over 15 years, Northern Virginia has served as the main hub for data centers, a legacy stemming from the early days of cloud computing. However, the rapid expansion of Big Tech across the U.S. reflects a strategic shift towards regions with abundant energy, affordable land, and favorable tax incentives tailored for the upcoming boom in AI data centers.