Dallas-Fort Worth Area is Key U.S. Data Center Destination Next Year

Written by Eric Funderburk for Industrial Info Resources (Sugar Land Texas)

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Summary

Texas is one of the leading destinations for 2026 U.S. data center projects, with a particular hotspot existing in the Greater Dallas-Fort Worth region.

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Data Center Buildout Across U.S.

The construction of data centers in the U.S. is very much in the news, as not only does the spending involved represent an extraordinary amount of investment, but also because the drain these facilities cause on area power grids, which can necessitate construction of new generating resources at the expense of residential ratepayers. In addition to power issues, environmental aspects such as constant noise and their construction also are issues.

Certain areas of the U.S. have drawn a substantial number of data centers, the most prominent of which is northern Virginia, which holds the largest concentration of data centers in the world. Other states and regions have grown in prominence as well, including Texas.

Texas Data Centers

Industrial Info is tracking more than 200 operational data centers in Texas and another 35 that are under construction. Texas Market Zone 8, representing the Greater Dallas-Fort Worth region and including 19 of Texas' 254 counties, leads in the number of operational facilities. In addition, looking at the more than 120 medium- and high-probability data center projects that are on the books to break ground next year in the state, the region leads as well.

However, the largest project that is presently underway is further north, in Abilene, and belongs to the Stargate Project (Delaware), a joint venture company that includes such heavy hitters as OpenAI (San Francisco, California) and Oracle (Austin, Texas.)

Active Construction

In the planning process for some years before it was officially announced earlier this year, Stargate already is well underway on the buildout of its first Abilene data center complexes, a substantial project that will result in eight main buildings in addition to basic facilities, carrying an estimated price tag of more than $15 billion. The first two buildings were completed this year, and six more remain under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

The Stargate Project's corporate plans encompass the buildout of multiple large data center complexes across various states, resulting in $500 billion in potential investment.

The massive size and investment of the Abilene project shifts the largest amount of spending for current projects to the Abilene area; however, by far the highest number of projects is in the Dallas-Fort Worth area, where Industrial Info is tracking 24 projects under construction.

The largest of these projects is underway in Fort Worth. Owner CyrusOne LLC (Dallas, Texas) broke ground earlier this year on this first building for a planned two-building complex requiring more than $1 billion in overall investment. Work on this initial building is expected to be completed by the end of next year. The 190,000-square-foot building will use approximately 70 megawatts (MW) of power. Before its construction is wrapped up, work on the second building is expected to begin, leading to an even bigger structure of more than 228,000 square feet, with corresponding power needs. This part of the project will be completed in 2027.

While CyrusOne is a Dallas-based company, its planned projects extend well beyond Texas, covering multiple states as well as certain European markets. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to learn more about the Fort Worth projects.

Projects in the Near Future

The area where the Dallas-Fort Worth region comes into its own is represented by its leading position for both the number and overall value of data center projects planned to break ground in the state next year. Industrial Info is tracking more than 50 such projects, although not all of these will be built according to plan.

While more projects are planned within Fort Worth, the region's largest project next year will be about 45 miles away from that city, in Tolar, where developer Sailfish Digital Ventures (Palm Beach Gardens, Florida) wants to construct a five-campus development requiring substantial power input. Work on campuses A and B is set to kick off next year, resulting in multiple buildings and requiring an estimated 1,600 MW of power when operational. Subscribers can learn more by viewing the related project reports.

Some of the most familiar names in Big Tech have projects lined up in the Dallas area next year as well, although for smaller undertakings. The most prominent among these is Google Incorporated's (Mountain View, California) plan to construction a third building at its data center complex in Red Oak, less than 20 miles south of downtown Dallas. (See project report.)

The area's biggest projects will come from major colocation players such as Stack Infrastructure (Denver, Colorado), which plans to kick off no less than four projects next year in the Dallas-Fort Worth area, with a combined price tag of more than $1.4 billion. Showing the region's heavy data center footprint, all four of Stack's projects entail constructing new buildings at existing multi-building complexes in the area. Two buildings will be started at the company's Fort Worth campus, and new data halls are planned for Stack's locations in Plano and Lancaster as well. Subscribers can learn more by viewing the related project reports.

Texas' Position in the U.S.

With more than $488 billion in potential U.S. data center starts planned for 2026, Texas represents nearly one-fifth of the overall total, coming to that table with more than $97 billion in potential projects. The state's relative ease in permitting data center and power infrastructure, coupled with five of the 15 biggest cities in the U.S., makes the state a promising destination for the continued buildout of these facilities that have become so crucial to modern life.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).