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Texas Poised to Overtake Northern Virginia as Top Data Center Market by 2030, JLL Says

Developers flock to Texas for available power, ample land, easier permits.

Overview

  • JLL reports 6.5 GW of capacity under construction in Texas, part of a roughly 35 GW U.S. pipeline, with a majority of new builds shifting beyond traditional hubs.
  • ERCOT projects Texas electricity demand will jump 71% by 2031, and data centers’ 2025 maximum load is about 8 GW versus a 94 GW grid peak.
  • Big Tech companies including Amazon, Microsoft, Google, OpenAI and Meta are expected to spend more than $600 billion this year on AI infrastructure, accelerating data center growth.
  • Water demands are mounting as the IEA estimates a 100 MW facility uses about 2 million liters daily, EESI cites up to 5 million gallons for very large sites, and HARC tallies 25 billion gallons used in Texas in 2025 with steep growth projected by 2030.
  • Local reactions are intensifying with San Marcos rejecting a $1.5 billion campus, Hays County weighing a moratorium on water‑intensive projects, Round Rock approving a site, New Brunswick, N.J., killing a proposal, and President Trump urging data centers to fund their own grid costs.