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Texas Ranks First in Global Data Center Market Comparison

Texas has been ranked first in the 2026 Global Data Center Market Comparison by Cushman & Wakefield, with Dallas leading the way. The state's rapid growth in data center development is driven by demand for land and electricity, although concerns about resource availability and infrastructure costs have emerged as challenges.

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North Texas has been ranked as the top location in the 2026 Global Data Center Market Comparison by Cushman & Wakefield, a global commercial real estate services firm. Dallas secured the No. 1 position, with Austin-San Antonio and West Texas also achieving top rankings in their respective categories. The report highlights Texas's rapid emergence as a significant hub for data center development, driven by demand for land and electricity to support artificial intelligence and computing needs. While Virginia remains the largest data center market by operating capacity, Texas is noted for its potential to match or exceed Virginia's capacity in the future, supported by factors such as abundant land, a business-friendly environment, and an independent power grid. However, the growth has raised concerns regarding resource availability, particularly water and electricity, prompting state officials to address infrastructure costs and grid reliability. The report indicates that electricity is now the primary factor influencing site selection for new data centers, with long connection times to the grid leading some developers to seek alternative power sources.

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A Southern state just took the top spot in one of the world’s fastest-growing industries

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Texas Ranks First in Global Data Center Market Comparison