This US state could be the new data center capital of the world by 2030

Google executives meet with officials at a Google data center in Midlothian, Texas. Fortune via Reuters Connect Northern Virginia is home to the world's largest data center market. That could soon change, as Big Tech ramps up data center construction across the US. West Texas, Tennessee, Wisconsin, and Ohio are emerging as key markets. The old saying "Everything is bigger in Texas" now applies to data centers. The Lone Star State is on track to unseat Virginia as the world's largest data center market by 2030, new research from Jones Lang LaSalle shows. The shift indicates how drastically the data center development boom has reshaped the US's digital infrastructure map and the landscape as a whole. Amazon, Microsoft, Google, and Meta plan to spend more than $600 billion on AI infrastructure expansion in 2026 — a number so dizzyingly high that Wall Street is on high alert for signs of an AI bubble. More than half of all data center construction in the US now happens outside the industry's traditional hubs, according to JLL's North America Data Center Report — Year-End 2025. Tennessee, Ohio, Wisconsin, and Texas are now considered the top emerging markets for data centers. Texas alone has 6.5 gigawatts of data center capacity under construction. That amount of power is roughly equivalent to more than three Hoover Dams or over 17,000 Tesla Model 3s when using the US Department of Energy's standard, and it accounts for about one-fifth of the 35 gigawatts of data center capacity the US added to its pipeline. That 35 gigawatts is roughly equivalent to the annual electricity consumption of the UK or Italy, and adding it would nearly double the existing data center capacity in the US, according to JLL. Part of Texas's appeal is its sprawl. The state houses some of the most ambitious data center projects in the country. Oracle and OpenAI's flagship Stargate data center is in Abilene, Google is planning a $40 billion expansion in West Texas, and Meta is building a massive new site in El Paso, just to name a few. Texas also has abundant energy resources, which is good news for data center developers. The AI boom has driven electricity demand to new heights and strained the nation's power grid. In Texas, several data centers — including Stargate — are being built alongside on-site power plants. Northern Virginia has been the data center industry's central hub for more than 15 years, going back to the early days of cloud computing. That has changed rapidly as Big Tech spreads out across the country in search of available power, cheap land, and the best tax incentive packages for the coming wave of AI data centers. Have a tip? Contact this reporter via email at ethomas@businessinsider.com or on Signal at 929-524-6964. Read the original article on Business Insider