Texas continues to dominate the data center industry, ranking second nationwide for employment in the sector.
New data from the US Census Bureau’s Quarterly Workforce Indicators highlights the state’s rapid job growth, fueled by massive investments in infrastructure to support artificial intelligence (AI) and other advanced technologies.
Why It Matters
The data center boom has brought billions of dollars into Texas, with tech giants and investors betting big on the state’s potential.
However, some experts question whether these facilities generate enough long-term jobs and whether they justify their high energy consumption.
By the Numbers
- Texas holds 10% of the nation’s data center jobs, with 47,856 positions.
- The state has seen a 38% increase in data center employment from 2018 to 2024.
- Five counties—Travis, Dallas, Collin, Harris, and Bexar—account for nearly 76% of the state’s data center workforce.
These figures include roles in data centers, web hosting, and other tech-related fields.
Texas’ Biggest Data Center Investments
Houston Expands with an $8 Billion Facility
ECL, a leading data center solutions provider, is constructing an $8 billion data center east of Houston. The project, covering over 600 acres, is expected to open its first phase this summer, according to Data Center Frontier.
Microsoft Bets on San Antonio
Near San Antonio, Microsoft is investing $765 million into two massive data centers. The project, covering 489,400 square feet, reflects the company’s commitment to expanding cloud and AI infrastructure.
Energy Companies Step In
To keep up with growing power demands, NRG Energy plans to build four natural gas plants across Texas. These facilities aim to prevent grid strain as data centers continue to consume large amounts of electricity.
Meanwhile, CPS Energy, a Texas utility provider, is investing $1.3 billion to upgrade infrastructure to accommodate rising data center energy demands.
The Bigger Picture
The surge in data center investments aligns with broader industry trends. As AI adoption grows, companies require more high-powered computing resources, driving demand for larger facilities.
However, these expansions also come with challenges. Texas’ energy grid, managed by ERCOT, is already under pressure.
Projections suggest electricity demand from data centers and other major users will jump nearly 60% from 2024 to 2025.
Looking Ahead
Texas has positioned itself as a leader in the data center space, offering job opportunities and attracting large-scale investments.
But the rapid growth raises questions about sustainability. Will Texas be able to meet the rising power needs, or will energy constraints slow the momentum?
For now, the state remains at the forefront of the data center boom, with more developments on the horizon.
