Dallas has been ranked No. 1 in the 2026 Global Data Center Market Comparison by Cushman & Wakefield, a global commercial real estate services firm. The ranking evaluates 107 markets worldwide based on factors such as access to power and land, projects under construction, existing infrastructure, and regulatory environment.
The Lone Star State also secured top positions in other categories, with Austin-San Antonio and West Texas ranking first in their respective segments. While Virginia remains the world’s largest data center market by operating capacity, Texas is positioned as the fastest-growing hub due to surging demand from artificial intelligence and other computing-intensive industries.
The report highlights that Dallas has one of the largest pipelines of planned data center development, trailing only Virginia and Atlanta. Development is expanding beyond the Dallas-Fort Worth metroplex as companies seek vast land and energy resources to support AI-driven computing needs.
Key Factors Driving Growth
Cushman & Wakefield’s analysis emphasizes land availability, energy infrastructure, and regulatory support as critical drivers of Texas’s rise in the data center sector. The state’s growth trajectory suggests it could eventually match or surpass Virginia in total data center capacity, though current operational capacity remains lower.
Industry Expansion Across Texas
The report notes that data center activity is spreading across the state, with new projects emerging in regions previously less associated with the industry. This expansion reflects broader trends in the tech sector, where companies are prioritizing scalability, cost efficiency, and energy resilience in their infrastructure investments.
Market Context
Despite Texas’s rapid growth, Virginia continues to lead in operational capacity, underscoring the distinction between existing infrastructure and future potential. The Cushman & Wakefield ranking prioritizes growth potential over current scale, positioning Texas as a key player in the next phase of the data center industry’s evolution.