Dallas has secured the top position as the world's leading data center market, according to a May 2026 ranking by Cushman & Wakefield.

While Cushman & Wakefield’s ranking places Dallas at No. 1 globally, Virginia remains the world’s largest data center market by capacity already in operation.

The study, however, took into account other factors to make its determination, including access to power and land, projects under construction, existing infrastructure, and the regulatory environment. Additionally, Dallas has one of the largest pipelines of planned data center development.

With that information, the study placed Dallas ahead of major hubs like Atlanta and Northern Virginia, leading with 31.7 gigawatts of capacity.

This shift reflects Texas's advantages in available land, fiber infrastructure, and a deregulated energy market.

Tech giants and hyperscalers have poured billions into facilities across the Dallas-Fort Worth region, with dozens of new projects underway. Texas overall stands poised to overtake Virginia as the largest data center market globally by 2030, fueled by demand for artificial intelligence infrastructure.

Environmental concerns have become a hot-button issue regarding data centers, as massive water use has caused fear of draining local water supplies.

A study by the Florida Water & Pollution Control Operators Association notes that one large facility can use as much water as a small city, adding that the water is not used as a raw material but rather to keep servers cool.

Several means can be used to maintain data center cooling, which the study states includes: Air cooling, evaporative cooling, closed-loop water cooling, direct liquid cooling and immersion, and free cooling.

Water-based cooling remains the primary method for data centers worldwide, accounting for roughly 75-90% of installations, according to the study.

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Credit: Shutterstock

Florida is no stranger to data centers, with more than 100 smaller-scale data centers across 19 markets, according to Data Center Map; local counties have voiced their opinions in retaliation. Real estate news outlet The Real Deal reported that Palm Beach County Commissioners voted to halt data center applications and immediately prevent developers from submitting new proposals, citing that more research into the long-term impacts data centers may cause before approving infrastructure.

Alternatively, the growth can deliver substantial economic benefits, as projects have created construction jobs, long-term operational roles, and tax revenue without a state income tax burden.

Texas Governor Greg Abbott has highlighted it as an epicenter of AI development, citing commitments from major firms.

Concerns over water usage could drain Texas’ resources by 2040, as lawmakers pressed for greater transparency on usage, its direct consumption and indirect demands tied to power generation.

While Texas is poised to become the world's-leading data center market, it remains to be seen whether the state has the capacity to maintain that position over the long term, as its continued expansion will hinge on several factors: power procurement, infrastructure upgrades, and local permitting processes.