Texas economist talks ties between data center development, stock market
Texas economist Jorge Barro explains how rapid data center and AI infrastructure growth could affect electricity and water costs, local communities, interest rates and investment portfolios. He says uncertainty over the pace of development is also influencing technology stocks and retirement accounts.
Texas is on track to become the world’s largest data center market by 2030, according to economist Jorge Barro of the Texas Real Estate Research Center. He said the scale of AI-related infrastructure investment is creating jobs, tax revenue and broader economic activity, while also raising concerns about noise, utility capacity, electricity rates, water quality and water costs.
Barro said uncertainty about whether data center construction can continue at its current pace has implications beyond communities hosting facilities. Because technology companies represent a substantial share of major stock indexes and retirement portfolios, changes in expectations for AI and data center growth can affect investors even if they do not own individual technology stocks or live near a facility.