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Dallas named top global data center hub in new report

A new industry report identifies Dallas as the leading location for data centers worldwide, overtaking Virginia after decades of dominance.

Wade Ramos

September 15, 20262 min read

Data Center Construction - illustration, Jake Team LLC

Dallas has been identified as the leading global location for data centers, according to a new report from real estate firm Cushman & Wakefield. The analysis marks the first time the Texas city has held the top position, surpassing Virginia, which had maintained the No. 1 ranking for more than 25 years.

The report evaluated over 100 markets worldwide, considering factors such as power infrastructure, political stability, regulatory environments, and data retention capabilities. Roxanne Marquis, a data center real estate agent with more than 20 years of experience, attributed Dallas’s rise to its comprehensive infrastructure.

She noted that the region offers not just space for individual facilities but room for entire campuses, allowing developers to avoid the constant search for new land parcels.

Marquis explained that developers prefer locations where their workforce can reside locally. She stated that while other areas in Texas may have ample power, the Dallas-Fort Worth area provides a desirable living environment, reducing the need for long commutes. This combination of buildable land and residential appeal has drawn significant development interest to the region.

However, the rapid expansion of data centers in the Dallas-Fort Worth area has also generated opposition. In August, Governor Greg Abbott expressed concern about the impact of these facilities on local communities. He stated that there is no justification for building data centers near neighborhoods that would disturb residents.

In response to these concerns, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to audit data centers seeking grid connection. This action created a temporary pause on new projects. Abbott noted that ERCOT is currently reviewing 474 gigawatts of connection requests, a figure that exceeds five times the council’s record peak electricity demand.

Marquis viewed this regulatory scrutiny as beneficial for the grid, as it necessitates infrastructure upgrades to support the increased load.

Source: spectrumlocalnews.com.

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Wade Ramos

Wade Ramos writes about community life, schools, public safety, and local events in Dallas.

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