Northern Virginia has long been the world’s largest data center market. But that dominance may not last much longer.
As Big Tech accelerates AI infrastructure spending across the United States, new regions are rising fast. Research from Jones Lang LaSalle shows Texas is on track to overtake Virginia as the world’s biggest data center market by 2030.
The shift reflects a major reshaping of America’s digital infrastructure map. Companies like Amazon, Microsoft, Google, and Meta are expected to spend more than $600 billion on AI infrastructure in 2026 alone.
More than half of new US data center construction now happens outside traditional hubs. Tennessee, Ohio, Wisconsin, and Texas are emerging as major markets.
Texas alone has 6.5 gigawatts of data center capacity under construction — about one-fifth of the 35 gigawatts recently added to the US pipeline. That 35 gigawatts is roughly equal to the annual electricity consumption of the UK or Italy and would nearly double current US data center capacity.
Part of Texas’s appeal is scale and energy access. Massive projects are underway across the state. Oracle and OpenAI are building a flagship Stargate facility in Abilene. Google is planning a $40 billion expansion in West Texas. Meta is constructing a major new site in El Paso.
Unlike land-constrained Northern Virginia, Texas offers vast space, abundant energy resources, and the ability to build on-site power generation. As AI drives electricity demand to record levels, access to reliable power has become a decisive advantage.
Northern Virginia dominated for over 15 years, dating back to the early cloud computing era. But as AI reshapes infrastructure needs, Big Tech is spreading nationwide in search of land, energy, and tax incentives — and Texas is emerging as the frontrunner.