Benefits Beyond Connectivity

Texas is home to the second-largest data center market in the United States, and the economic impact of that distinction is significant. In 2023, the state’s data center industry contributed $52.6 billion to Texas GDP and generated $3.5 billion in state and local tax revenue — a figure comparable to the entire two-year budget of the Texas Department of Public Safety. These tax dollars flow directly to local governments, funding public schools, infrastructure, and emergency services across the state. Looking ahead, nearly 117 million square feet of planned data center development is projected to generate an additional $3.8 billion for the state and $4.9 billion for local governments and schools once fully operational. In Red Oak, for example, $13 billion in planned data center investment is expected to quadruple the city’s total taxable land value, giving local leaders new resources to invest in their communities. Understanding the scale of this economic contribution helps illustrate why data centers have become a critical part of Texas’s financial foundation.

Keeping data centers on American soil is critical to our national security. In addition to securing our sensitive information in the United States, data centers also provide the digital infrastructure that ensures U.S. competitiveness in artificial intelligence and other cutting edge technologies that are essential to our economic competitiveness and national security.

Data centers are critical infrastructure enabling America’s technological and environmental future.

As the United States advances toward a clean energy economy, the nation is embracing transformative technologies—electric vehicles, efficient heat pumps, smart appliances, and renewable energy systems—all of which depend on the robust digital infrastructure that data centers provide. This infrastructure is not merely supportive; it is foundational to our economic transformation.

Data centers power the digitization of every sector of our economy, from healthcare and education to manufacturing and agriculture. They enable the widespread electrification of vehicles and buildings, reducing our carbon footprint while improving efficiency. They support the reshoring of advanced manufacturing, bringing jobs and production capacity back to American soil. They make possible the growth of controlled environment agriculture, which uses precision technology to produce food more sustainably. And they provide the computational backbone for artificial intelligence, clean energy grid management, and the countless innovations that will define 21st century economic competitiveness.

Data centers are highly energy-efficient facilities that help enable energy savings for homes and businesses. The industry prioritizes reducing energy use and increasing efficiency and facilities are designed to optimize efficiencies from day one.

In fact, while data center computing workloads increased nearly 550 percent between 2010 and 2018, electricity consumption grew only six percent, due to efficiencies from the cloud migration, improvements in cooling systems, and other operational and technological efficiency gains at modern data centers.

Source: Data Center Knowledge, “Study Data Centers Responsible for 1 Percent of ALl Electricity Consumed Worldwide”, February 2020.

Data centers are some of the largest buyers of clean energy, contributing to our collective sustainability goals. The data center industry has accelerated the economy-wide transition to clean energy and has created demand for more clean energy in the regions where they operate.

Data centers accelerate the clean energy transition in the U.S. with commitments to purchase clean energy and by funding the development of new sources of clean energy. In fact, wind and solar capacity contracted to data center providers and customers represented two-thirds of the total U.S. corporate renewables market last year and four of the top five purchasers of renewable energy in the U.S. are companies that operate data centers. Many data center companies have committed to being carbon neutral and supporting their operations with 100% clean energy by 2030.

The impact of data centers extends far beyond their physical infrastructure. These facilities create high-quality jobs with competitive wages, generating substantial tax revenue that supports local schools, emergency services, and community programs. They partner with local businesses during development to service providers for ongoing operations which strengthens the regional economy. Data centers also invest in community initiatives, supporting workforce development programs, educational partnerships with local schools and colleges, and infrastructure improvements that benefit all residents.

Through their commitment to sustainability, they drive innovation in renewable energy adoption and water conservation, setting new standards for responsible operations. By choosing to locate in Texas, data centers demonstrate a long-term commitment to being good neighbors—contributing to the economic vitality, educational opportunities, and quality of life that make Texas communities thrive.

Data center operators, their employees, and their tenants are committed to giving back to the communities where their teams live and work.

Many data center owners and operators have developed programs within their communities to support academic achievement, grow the data center workforce, and strengthen digital and energy infrastructure. Companies that own, operate, and manage data centers also financially contribute to non-profits that support the local community, contribute time and talent, and engage in community service.

Data centers also benefit local schools and educational institutions in their communities by supporting STEM education in K-12 schools, funding internships and scholarships, and contributing to new fields of higher education.