Dallas ranks No. 1 primary data center market globally, surpassing Atlanta, Virginia
Dallas has been named the No. 1 primary data center market globally, according to a new report from Cushman & Wakefield. The report highlights Texas's growing importance as an AI infrastructure hub due to its favorable business climate, but also notes challenges such as water availability and state regulations.
Dallas has been ranked the No. 1 primary data center market worldwide for the first time, surpassing established markets like Atlanta and Virginia, according to a new report released by real estate firm Cushman & Wakefield. The report, which evaluates 107 global markets based on factors like power infrastructure, regulatory conditions, and operational capacity, underscores Texas's emergence as a significant AI infrastructure hub. Austin-San Antonio and West Texas led secondary and tertiary market rankings within the state.
Texas's ascent in the data center industry over the past three years is attributed to its business-friendly environment, deregulated power grid, abundant land, and various incentives. These factors have contributed to the state's strong momentum in digital infrastructure development.
However, the report also identifies challenges to this growth, including concerns over water availability. Additionally, while Texas generally has less restrictive regulatory hurdles than other states, Senate Bill 6 impacts data center development by empowering state regulators with a "kill switch" for large energy users.
Despite these headwinds, the report credits highly publicized projects, such as the Stargate project in Abilene, with reinforcing Texas's reputation as a premier destination for large-scale digital infrastructure, attracting interest from hyperscale and AI-driven users.