# Texas Expands Data Center Capacity

Texas has 6.5 GW of data-center capacity under construction—more than any other U.S. state—with strong demand in Austin and Dallas-Fort Worth. At the same time, grid-interconnection scrutiny and water availability could constrain new projects; Virginia, the industry’s established center, faces record-low vacancy and a growing power crunch. No specific government solicitation or contract is identified, but the capacity buildout and its infrastructure constraints are relevant to firms planning data-center, power, cooling, and water-related investments or services.

- Contractors and infrastructure providers can evaluate project opportunities in Texas while accounting for utility capacity, interconnection reviews, and cooling and water needs.
- The supply constraints in Virginia and Texas may affect site selection, project schedules, and demand for supporting power and infrastructure services.
- The signal identifies no procurement deadline or contract action; it points to market conditions rather than an active solicitation.

**Jurisdictions:** sled
**Industries:** Information Technology, Energy & Utilities
**Topics:** Digital Infrastructure, Physical Infrastructure
**Published:** October 01, 2026

### Government Entities
- Public Utility Commission of Texas (PUCT)
- Electric Reliability Council of Texas (ERCOT)
- Office of the Governor of Texas

### Sources
- [Texas is racing toward the top of the data center map with more capacity under construction than any other U.S. state, while Virginia, long the industry's undisputed capital, faces record-low vacancy and a deepening power crunch](https://gcn.com/texas-racing-toward-top-data-center/22091) - gcn.com