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Texas’ $22 billion data centre bet: The next frontier in America’s digital infrastructure boom

Kinexio

27 August,2025

1 min read

Across the United States, a quiet revolution is underway. One measured not in headlines but in megawatts, square footage, and the hum of servers powering the digital economy. Data centres, once relegated to backrooms and nondescript industrial parks, have become billion-dollar assets shaping the future of technology. The latest and perhaps most audacious example comes from Texas, where plans for a massive $22 billion data centre campus are drawing global attention.

The project, spearheaded by Vantage Data Centers and backed by private equity giants Silver Lake and DigitalBridge, is reportedly nearing a financing arrangement with JPMorgan Chase and Mitsubishi UFJ Financial Group (MUFG). If finalized, it would rank among the largest financings in the sector’s history, reflecting the immense value now placed on digital infrastructure. Silver Lake and DigitalBridge have already committed $3 billion in equity, underscoring the sector’s extraordinary growth potential.

Data centres: From backroom servers to critical assets

The transformation of data centres over the last decade has been striking. Once peripheral components of the IT ecosystem, these facilities now underpin virtually every facet of modern life, from banking transactions and healthcare systems to streaming services and AI-driven applications.

Moreover, commercial real estate experts at JLL highlight that data centres have become some of the most coveted real estate assets globally. Limited supply, insatiable tenant demand, and rising rents have fuelled a dramatic surge in valuations, with market capitalization projected to grow by 161% between 2019 and 2025. The AI boom is accelerating this trend. Large-scale AI models require staggering amounts of computational power, and the proliferation of generative AI applications has only intensified demand. For developers like Vantage, the economic tailwinds could not be stronger.

Why Texas?

Texas has long attracted energy-intensive industries, and its combination of affordable land, robust energy infrastructure, and business-friendly policies positions it as a prime destination for data centre expansion. The proposed Vantage campus could redefine the state’s digital landscape, potentially becoming one of the largest digital infrastructure projects in the U.S.

Whilst the economic implications are significant. A large-scale facility of around 250,000 square feet can employ up to 1,500 workers during construction, many earning six-figure salaries. Once operational, these centres support dozens of permanent jobs, from engineers and technicians to facilities managers. Beyond the walls of the facility, each data centre job is estimated to generate an additional 3.5 jobs in the local economy, creating a multiplier effect that ripples across construction, energy, and technology sectors.

Northern Virginia, nicknamed “Data Center Alley” offers a glimpse of what Texas could achieve. The region accounts for 13% of the world’s data centre capacity, contributing an estimated $31 billion to the economy in 2023 alone. With strategic planning, Texas could replicate and even surpass this level of success.

Challenges on the horizon

Yet, the boom in data centres is not without challenges. Energy and water demands are substantial, sometimes straining public infrastructure and sparking debates about sustainability. For example, Barclays Research estimates U.S. data-centre electricity demand could grow 14%–21% annually through 2030. That trajectory would see demand nearly triple from roughly 150–175 TWh in 2023 to as much as 560 TWh by 2030 (around 13% of current U.S. electricity use) In states like Texas, where extreme weather has exposed vulnerabilities in the power grid, meeting these demands will require careful planning and investment.

Moreover, water scarcity poses another hurdle. Cooling systems at hyperscale facilities can consume millions of gallons daily. In Arizona, residents protested a data centre project projected to use over one million gallons of water per day, illustrating the tensions between growth and environmental stewardship. Beyond utilities, developers face resource bottlenecks in land, skilled labour, and specialized equipment, which can slow construction or drive-up costs.

Balancing growth and sustainability

The success of Texas’ data centre expansion will hinge on collaboration among policymakers, utilities, and developers. Integrating green energy solutions, advanced cooling technologies, and modernized grids will be critical to sustaining growth while minimizing environmental impact.

Globally, investment in data centre infrastructure is projected to reach $7 trillion by 2030, with over 40% earmarked for the U.S. This spending will determine not only the physical backbone of tomorrow’s digital economy but also which states emerge as leaders in innovation and technology.

A defining moment for digital infrastructure

The proposed $22 billion Texas campus represents more than a real estate development, it symbolizes the future trajectory of the digital economy. As AI reshapes industries and demand for cloud services soars, the physical infrastructure that supports these technologies has become a central battlefield for investment, policy, and technological innovation.

For financial institutions like JPMorgan and MUFG, underwriting the Texas project is more than a financing deal; it is a strategic bet on the long-term growth of digital infrastructure. For the state, navigating energy, water, and community challenges successfully could establish Texas as a global hub for data centres, mirroring Northern Virginia’s success and setting a new standard for economic and technological development.

The stakes are high, the investment unprecedented, and the potential transformative. If Texas rises to the challenge, its $22 billion data centre campus will not just power computers it will power the next era of America’s digital economy.