The State Elon Musk wants everyone to move may become world's new data center capital

Texas is all set to become world’s new data center capital. As reported by Business Insider, a new research from Jones Lang LaSalle (JLL) shows that the Lone Star State is on track to surpass Virgina as the world’s largest data market by 2030, reshaping the US digital infrastructure map. Tech giants Amazon, Microsoft, Google and Meta are now expected to spend more than $600 billion in 2026 in AI infrastructure expansion, feeling unprecedented demand for data centres. Wall Street analysts warn the sale of investment is so massive it could signal an AI bubble.

As per JLL’s North America Data Center Report – Year-End 2025, more than half of all new US data center construction now happens outside traditional hubs. Emerging markets include Tennessee, Ohio, Wisconsin — and especially Texas.

Texas’ massive pipeline

The BI report adds that Texas along has 6.5 gigawatts of data center capacity under construction, accounting for about one-fifth of the US pipeline. To put that in perspective this is equivalent to the output of more than three Hoover Dams or the energy needed to power 17,000 Tesla Model 3s. Nationwide, the U.S. pipeline of 35 gigawatts nearly doubles existing capacity, equal to the annual electricity consumption of the UK or Italy.

Big tech bets on Texas

The state is home to some of the most ambitious projects in the country:

ul1
• li1Oracle and OpenAI’s Stargate data center in Abilene, built alongside its own power plant.
• li1Google’s $40 billion expansion in West Texas.
• li1Meta’s massive new site in El Paso.

Texas’s appeal lies in its abundant energy resources, sprawling land, and attractive tax incentives — all critical as AI-driven electricity demand strains the nation’s power grid.

Virginia may have defined the early era of cloud computing, but Texas is now positioning itself as the global capital of data centers. With billions in investment and vast infrastructure projects underway, the state is set to play a central role in powering the next generation of AI and digital services.