Data center construction drives Panhandle employment, boosts economy
Data center construction in Amarillo, Texas, is significantly boosting the local economy by driving employment and increasing hotel/motel tax revenue by 16%. Construction workers renting local Airbnbs have shifted other visitors to hotels, contributing to $1 billion in visitor spending this year. This economic trend is expected to continue for the next two years throughout the Panhandle.
Construction of a major data center outside Amarillo, Texas, is driving significant economic growth and employment in the Texas Panhandle. According to KFDA, construction workers have rented numerous local Airbnbs, which in turn has pushed other tourists to utilize hotels and motels, leading to a 16% increase in hotel and motel tax revenue this year.
Kashion Smith, Executive Director for Visit Amarillo, highlighted the substantial economic impact, stating that visitors spent $1 billion in Amarillo in 2024, translating to $1,900 per minute flowing into small businesses. This surge in economic activity, bolstered by the data center development, is expected to continue for the next two years, as predicted by Amarillo National Bank. The trend signifies Amarillo's ability to attract significant investment, though it also underscores the need to manage growth alongside resource constraints like water and lodging availability.