Report: Dallas is No. 1 primary data center market in the world
Dallas has been named the No. 1 primary data center market globally by Cushman & Wakefield, with Austin-San Antonio and West Texas leading secondary and tertiary rankings. The report highlights Texas's growing importance as an AI infrastructure hub, influenced by factors like power infrastructure, land availability, and regulatory conditions. Challenges such as water availability and Texas Senate Bill 6, which impacts large energy users, were also noted.
Dallas has been designated the leading primary data center market globally for the first time, surpassing established hubs like Atlanta and Virginia, according to a new report from real estate firm Cushman & Wakefield. The report also recognized Austin-San Antonio and West Texas as top secondary and tertiary markets, respectively, highlighting Texas's rising prominence as a critical center for large-scale AI infrastructure.
John McWilliams, the firm’s head of data center insights, indicated that while demand remains exceptionally strong, the industry is now experiencing "managed growth," influenced by factors such as power delivery timelines, land availability, community sentiment, and regulation. Texas, anchored by the long-established Dallas-Fort Worth market, has emerged as a key player over the past three years due to its business-friendly environment, deregulated power grid, ample land, and various incentives.
Despite these advantages, challenges persist, including concerns over water availability and the impact of Texas Senate Bill 6, which grants state regulators a "kill switch" for large energy consumers. Nevertheless, the report cited projects like the highly publicized Stargate initiative in Abilene as reinforcing Texas’s status as a premier destination for digital infrastructure, attracting hyperscale and AI-driven users.
The article also references a previous Google investment of $40 billion in Texas, with Google CEO Sundar Pichai, U.S. Rep. Jake Ellzey, Deputy Secretary of Energy James Danly, and Gov. Greg Abbott present at the announcement in Midlothian. A tour of NTT Data's campus in Garland was also mentioned in connection with data center activity in the region.