Texas Could Pass Virginia as World’s Top Data Center Market

Texas Could Pass Virginia as World’s Top Data Center Market

Texas Could Pass Virginia as World’s Top Data Center Market

https://www.govtech.com/artificial-intelligence/texas-could-pass-virginia-as-worlds-top-data-center-market

Publish Date: 2026-02-20 17:44:00

Source Domain: www.govtech.com

  • Texas is quickly becoming a top global data center market, projected to surpass Virginia by 2030.
  • Northern Virginia, a long-time data center capital, is seeing developers relocate to Texas.
  • Texas is attractive due to its business-friendly regulatory environment and substantial incentives.
  • Texas offers abundant land and supports extensive renewable energy use, vital for data centers’ power needs.
  • Data centers require immense amounts of energy and water, influencing Texas energy demand and leading to water usage concerns.
  • Many developers favor Texas due to a lack of zoning regulations, simplifying the approval process.
  • Central Texas has emerged as a major hub for both existing and future data center projects.
  • Data center projects are often met with local opposition due to environmental and resource concerns.