A new report shows Texas is on pace to surpass Virginia as the world’s largest data center market by 2030, underscoring how rapidly the boom in artificial intelligence infrastructure is reshaping the nation’s digital landscape.
According to JLL’s North America Data Center Report — Year-End 2025, more than half of all U.S. data center construction now occurs outside traditional industry hubs. Tennessee, Ohio, Wisconsin and Texas are considered the top emerging markets.
Texas alone has 6.5 gigawatts of data center capacity under construction, the report said. Analysts cite the state’s size and available land as key advantages as companies seek space for large-scale projects.
Major technology firms are fueling the expansion. Amazon, Microsoft, Google and Meta plan to spend more than $600 billion on AI infrastructure in 2026, a level of investment that has prompted heightened scrutiny on Wall Street over concerns of a potential AI bubble.
Texas is home to several high-profile developments. Oracle and OpenAI are building their flagship Stargate data center in Abilene. Google is planning a $40 billion expansion in West Texas, and Meta is constructing a large new site in El Paso.
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If current trends continue, the report indicates Texas could overtake Virginia — long considered the global epicenter of data centers — within the next five years.
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