Dallas Tops Global Data Center Rankings as AI Demand Strains Infrastructure
Dallas has ranked as the world's top primary data center market for the first time, according to Cushman & Wakefield's 2026 Global Data Center Market Comparison. The shift reflects how AI adoption and cloud computing demand are reshaping where operators build facilities.
Atlanta, Virginia, Columbus, and Johor round out the top five markets. Texas dominance extends to secondary and tertiary rankings, with Austin-San Antonio and West Texas leading those categories.
Global data center capacity under construction nearly doubled to 31.7 gigawatts in 2025, up from 12.5GW in the previous report. But developers face new constraints: power availability, land use restrictions, permitting delays, and regulatory scrutiny now determine where projects get built.
Power Delivery Becomes the Limiting Factor
Power availability has become the primary constraint shaping development strategy. New large-load power requests now take an average of 4.4 years to deliver, extending to five years across the Americas and Europe, Middle East, and Africa regions.
Developers are responding by pursuing powered land, integrating private generation into projects, and expanding into secondary and tertiary markets where infrastructure constraints are less severe.
"The industry's focus has shifted from simply securing land to securing deliverable power," said John McWilliams, Head of Data Center Insights at Cushman & Wakefield. "That dynamic is fundamentally reshaping data center real estate strategy worldwide."
Americas Dominate Construction Activity
The Americas account for approximately 80% of all capacity currently under construction globally. Virginia remains the world's largest operational data center market with 11.3GW of capacity, while Texas has emerged as the fastest-growing region.
West Texas alone has 2.9GW under construction-more than the entire EMEA region's current pipeline. Planned capacity across the Americas increased more than fourfold year-over-year, rising from 46.1GW in 2024 to 191.3GW by the end of 2025.
About 89% of capacity currently under construction across the Americas is already pre-committed when including hyperscale self-build activity. This reflects a continued imbalance between supply and demand.
Market Divergence Widens
The report analyzed 107 global markets using 24 variables tied to commercial real estate fundamentals, power infrastructure, development activity, and regulatory conditions. The analysis reveals growing divergence between markets able to support long-term AI infrastructure expansion and those facing mounting regulatory, infrastructure, or community-related barriers.
Developers increasingly prioritize markets that can provide scalable land, reliable power infrastructure, and a regulatory environment supportive of long-term expansion.
Real estate professionals tracking data center markets should monitor power delivery timelines and regulatory environments as closely as traditional metrics like land costs and vacancy rates. These factors now determine project viability.
For those in real estate and construction, understanding how AI infrastructure demand is reshaping site selection and development strategy is essential. Learn more about AI's impact on real estate and construction, or explore how AI is changing real estate analysis and market strategy.
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