D-FW already ranks among top data center hubs, with much more on the way
North Texas, particularly the Dallas-Fort Worth metroplex, is a major data center hub experiencing rapid growth, which has sparked significant local opposition. This has led to protests, contentious city council meetings, and a statewide moratorium on new data center approvals implemented by Governor Greg Abbott. Despite challenges like power and water availability, analysts predict continued strong long-term growth for the region.
The North Texas region, encompassing the Dallas-Fort Worth (D-FW) area, is identified as a global leader in data center development, with companies like DataBank constructing new campuses in cities such as Red Oak. However, this rapid expansion has ignited widespread opposition, manifesting in public protests, heated City Council debates, and influencing local political discourse in areas like Westlake and Red Oak. This growing backlash culminated in Governor Greg Abbott enacting a moratorium on new data center approvals for projects that connect to the state grid, a shift from his previous pro-development stance.
Despite the regulatory pause and local resistance, industry experts, including those from CBRE and Cushman and Wakefield, anticipate sustained and even accelerated growth for D-FW. They attribute Texas's appeal to its business-friendly policies, independent power grid, vast land availability, and incentive programs. Projections suggest D-FW could soon become the world's leading data center market. While potential hurdles such as water scarcity and continued power availability are noted, the demand for data centers, driven by advancements in AI and technology, is expected to double U.S. data center capacity by late 2027, with Texas's pipeline of planned and under-construction projects far exceeding other states.