There’s a Reason Texas Is the Next Frontier for AI
Demand for data centers and the infrastructure supporting them has shifted from necessary to urgent. Data centers have grown significantly in construction business revenue—from 0.72% nationally in 2022 to 3.71% in 2023. Among all states, Texas leads in data center development with 279 facilities, more than half located in the Dallas-Fort Worth (DFW) area, according to the Texas Comptroller.
What Makes Texas, Especially North Texas, Ideal for the AI Boom
Strategic Advantage
Texas offers affordable energy, ample land, and a business-friendly environment—key factors for data center growth. While constructing the physical building is standard, the infrastructure powering and connecting data centers demands careful planning. These centers can require about 100 megawatts of power, enough to supply tens of thousands of homes.
Texas leads the nation in energy production, supplying 13% of the U.S. net electricity generation in 2023 (U.S. Energy Information Administration). Beyond oil and natural gas, Texas is expanding its renewable energy sources like solar, wind, and geothermal. Unique among states, Texas operates its own independent power grid, offering flexibility critical for mission-critical environments that must handle scaling traffic and energy demands.
The state’s extensive fiber optic network also supports high-bandwidth connectivity essential for efficient data center operation. A growing trend in data center construction is the inclusion of microgrids, which generate and store energy on-site, often via solar power. This setup not only adds redundancy and efficiency but can also benefit nearby communities. Texas’ sunny climate and lower risk of natural disasters such as hurricanes or earthquakes make it a stable location for these projects.
The Final Piece of the Puzzle: Talent
Data centers, energy, and infrastructure are vital, but skilled labor is the critical factor to bring projects to completion. The DFW area is a prime example of this, having added 3,400 construction jobs between February 2024 and February 2025 (Associated General Contractors of America). Despite this growth, the industry still faces an urgent need for more skilled craft labor.
Fortunately, DFW experienced the third-largest population increase among U.S. metro areas last year, expanding the talent pool. Meeting labor demands will require contractors to actively recruit and train new craft professionals. Apprenticeship programs and workforce development efforts—especially those linked to Texas’ renewable energy projects—are key to attracting individuals with no prior construction experience and guiding them into sustainable careers.
Looking ahead, data centers will continue to drive opportunities within Texas’ economy and construction industry. Challenges will arise as the AI ecosystem develops, but the state is well positioned to address these without disruption, keeping up with the demands of the AI era.
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