Dallas has emerged as the top global market for data center development, according to Cushman & Wakefield's 2026 Global Data Center Market Comparison. The ranking highlights North Texas' rapid ascent as a major destination for companies seeking the land and electricity essential for artificial intelligence and other intensive computing operations. While Virginia remains the world's largest data center market by operational capacity, Dallas leads in growth potential and planned development.
The report evaluated 107 markets based on factors including power and land availability, construction pipelines, existing infrastructure, and the regulatory environment. Dallas's strong showing is attributed to its robust pipeline of planned data center projects, positioning it behind only Virginia and Atlanta in that metric. The expansion is not confined to the Dallas-Fort Worth metroplex, with development spreading across Texas as companies seek vast resources.
Texas offers several advantages for data center growth, including ample land, a business-friendly climate, a deregulated power grid, and development incentives. However, this accelerated growth is also placing significant strain on the state's resources. Concerns are emerging regarding water availability in West Texas and the Panhandle, and the immense electricity demands of new data centers are intensifying scrutiny of the state's power supply. New regulations are being implemented to require large electricity consumers to share infrastructure costs and demonstrate their impact on grid reliability.
The challenge of securing sufficient power is a widespread issue in the industry. Cushman & Wakefield notes that electricity is now the primary factor in site selection, with new projects facing an average wait of 4.4 years for grid connection. This has led some developers to pursue self-generation or independent power solutions.
The surge in data center development has also drawn the attention of Texas officials. Governor Greg Abbott has urged data centers to contribute more to their power generation and infrastructure costs as the state grapples with the implications of this rapid expansion. The ability of Texas to meet the escalating power demands will be critical to maintaining its leading position in the burgeoning data center industry.
