Texas could surpass Virginia to become the largest data center hub in the world by 2030, according to a recent studie.
The 2026 Data Center Power Report places Texas as the fastest-growing data center market in the country, and predicts the state could see a 142% increase in its share of the industry through 2028. That puts the Lone Star State on track to surpass Virginia as the state with the biggest growth in the industry.
It also means that Texas could lead the entire world within three years in its proliferation of data centers, according to an analysis by real estate giant JLL.
The United States already leads the world with the largest number of data centers of any country by far — a total that currently stands at 4,088. That’s 43% of the total number of AI data centers in the world, according to a tool that maps data center development internationally. The closest countries trail far behind, with the UK at 509, Germany at 507 and China at 369.
Of the total number of data centers in the U.S., 579 currently operate in Virginia and 411 are up and running in Texas. But that could soon change.
According to JLL’s study, Texas is the hottest market for AI data center growth in the world because it offers abundant land, power costs that undercut other markets, and business-friendly regulations that Virginia’s Loudoun County, known as ‘Data Center Alley,’ can’t beat.
The geographical shift is being eyed by JLL and some in the industry as an “inflection point” when it comes to regions leading in the burgeoning field, both nationally and internationally.
Hotspots within Texas also experience shift
Within Texas, multiple metro hubs are jockeying for the top spot in data center development, with the industry showing an evolving preference for some over others.
Austin has already surpassed San Antonio and Houston for AI data center construction, according to a report by the Houston Chronicle.
And Austin appears to be coming for the Big D next.
Traditional data centers have congregated around Dallas as a nexus of fiber optic cables — the internet’s “highway system.” However, AI data centers use considerably more power than traditional data centers, so Dallas is running out of capacity to accommodate the boom, the Chronicle reports. Thus, we see a shift in the hotspots for data center development, focusing on the Austin-San Antonio corridor.
Houston is currently ahead of San Antonio and Austin for total data center capacity, but not for long, according to projections.
Though much larger than Austin and San Antonio, the Bayou City is experiencing far less growth than other Texas hot spots due to its propensity for flooding and other natural disasters, according to the Chronicle’s reporting.
As a result of Texas’ so-far unmitigated boom, data center regulation has emerged as a bipartisan concern in the state’s politics. Indeed, it’s noted as a major platform plank by candidates as ideologically disparate as progressive goat farmer and Texas Agricultural Commissioner candidate Clayton Tucker to MAGA-enthusiast gun YouTuber and congressional candidate Brandon Herrera.
Republican Lt. Gov. Dan Patrick has also cited it as a top Texas Senate priority ahead of the 2027 legislative session.
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