DFW Data Center Demand Remains Hot as Pre-Leasing Hits 95%
A new CBRE report indicates robust demand for data centers in the Dallas-Fort Worth (DFW) area, with 95% of the 765 megawatts of capacity under construction already pre-leased. This high demand, driven by AI providers and hyperscale data centers, is also contributing to rising costs for 'powered land' and increasing pressure on the electricity grid.
The Dallas-Fort Worth (DFW) metropolitan area is experiencing a significant surge in data center demand, with a new CBRE report revealing that 95% of the 765 megawatts of data center capacity currently under construction has already been pre-leased. This robust demand is largely fueled by AI providers and hyperscale data centers, pushing up prices for 'powered land'—sites equipped with grid connections and pre-negotiated utility deals.
DFW holds a 13% share of the primary U.S. data center market, trailing only Northern Virginia and Atlanta, and has nearly 13 gigawatts of capacity in its development pipeline. The region's inventory exceeded 1,400 megawatts in the first half of 2026, with vacancy rates at a low 2.8%. Industry reports from Cushman & Wakefield and JLL have also ranked DFW and Texas, respectively, as top data center markets.
The escalating demand has significant implications for electricity infrastructure. The Electric Reliability Council of Texas (ERCOT), which operates most of the state's grid, initially projected electricity demand to climb dramatically by 2032, with power-hungry data centers being a key driver. Although ERCOT CEO Pablo Vegas later revised down the more extreme projections, the expected increase from current levels remains substantial. Securing utility queue spots and funding interconnection deposits are becoming costly endeavors for investors, further highlighting the infrastructure challenges associated with this growth.