Data Centers
Frasier Cole helps data center developers secure infrastructure-ready sites across Texas, with a proven track record of contracting over 7,200 acres and 8,000+ MW of power. We specialize in identifying land with high capacity fundamentals and creating a clear path to power.
Texas is winning the data center race — but not all markets or sites are created equal.
Below, we break down the key factors, emerging trends, and high-impact insights that every developer, investor, and user should know before making their next move.
Discover why Texas has become the go-to destination for data center development, from power infrastructure to tax advantages and unmatched scalability.
We break down the top contenders — Dallas-Fort Worth, Austin, Houston, San Antonio, and more — to help you identify the strongest markets for your next facility.
Explore how renewables are reshaping data center site selection, and whether green energy is truly practical — or just PR — for your next project.
Before committing to a land purchase or starting site prep, it's critical to ensure your property meets the infrastructure and operational demands of modern data centers.
Why Texas is Leading the Data Center Boom
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Abundant Land Availability - Texas offers large, cost-effective land parcels that are ideal for hyperscale data center developments. Unlike many coastal markets where space is constrained and entitlements are slow, Texas provides both urban infill and rural greenfield options — giving developers flexibility and room for long-term expansion.
Reliable Energy Supply - With access to multiple grids, diverse energy generation sources (including wind, solar, and natural gas), and a historically deregulated market, Texas is uniquely positioned to offer scalable, redundant power — the single most critical factor in data center uptime. Developers can also leverage competitive electricity pricing and negotiate directly with power providers.
Business-Friendly Taxes and Regulations - Texas offers no corporate income tax, streamlined permitting processes, and tax abatements that significantly reduce development costs. Local municipalities often partner with data center developers to incentivize long-term job creation and infrastructure investment — making the state both economically and politically pro-growth.
Strategic Central U.S. Location - Positioned between both coasts, Texas enables low-latency national coverage and efficient distribution of digital workloads across North America. Cities like Dallas and Austin are especially attractive for enterprise users needing fast connections to both East and West Coast data traffic.
Growing Tech and Enterprise Presence - The explosive growth of tech companies, cloud providers, and Fortune 500 enterprise hubs in DFW, Austin, and San Antonio has created a high-demand, high-opportunity environment for data centers. This critical mass of digital infrastructure needs continues to drive absorption and accelerate pre-development timelines.
Texas Data Center Markets: Why DFW, Austin, Houston & San Antonio Are Leading the Nation
Texas has become ground zero for the next generation of data infrastructure. With its unique mix of land availability, low-cost energy, and pro-business climate, the state is attracting billions in data center development — from hyperscale operators to enterprise and colocation providers.
While Dallas-Fort Worth remains the powerhouse, Austin, Houston, and San Antonio each offer strategic advantages of their own. See out latest blog post for a market-by-market look at why these cities are leading the data center surge.
Are Renewables a Viable Solution?
Context & Opportunity
Data centers could consume as much as 12% of U.S. electricity by 2030. To keep pace with this growth while meeting sustainability goals, many operators are turning to renewable energy paired with storage and smart grid strategies.
Key Benefits
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Scalability:
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Texas’s ERCOT region is adding solar capacity at an unprecedented rate, with generation expected to more than double from 2024 to 2029.
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Battery-storage deployments are tripling, smoothing out the intermittency of wind and solar.
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Cost Competitiveness:
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Levelized costs for new solar and wind projects are now on par—or even below—those for natural gas.
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Long-term power-purchase agreements (PPAs) lock in low, predictable rates.
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Industry Leadership:
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Google matched 100% of its annual electricity consumption with renewables in 2017—and continues to do so every year.
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By 2030, Google aims to run all its facilities on 24/7 carbon-free energy, co-developing solar + storage projects through partnerships like Intersect Power & TPG Rise Climate.
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Challenges & Mitigations
Challenge 1: Variable output during cloudy or calm days
Solution 1: Grid-scale batteries and hybrid microgrids provide buffer capacity
Challenge 2: Aligning load with generation peaks
Solution 2: Demand-response programs shift non-critical workloads to off-peak periods
Challenge 3: Regulatory and interconnection delays
Solution 3: Leveraging incentives (e.g., Texas’s Competitive Renewable Energy Zones) and early stakeholder engagement
Real-World Example:
For a deeper dive into how renewables are reshaping data center power strategies, check out a recent paper written by Andrew Schaper: Accelerating a 1 GW Off-Grid Data Center Deployment in Texas.
Takeaway:
With rapidly falling costs, aggressive procurement by hyperscalers, and advances in storage and grid integration, renewables are not only viable but increasingly the default choice for forward-looking data center operators.
"Data Center Site Requirement Checklist"
Before committing to a land purchase or starting site prep, it's critical to ensure your property meets the infrastructure and operational demands of modern data centers. This checklist covers the essential criteria — from power redundancy and fiber connectivity to zoning, water, and risk mitigation — to help you avoid costly surprises and confidently move forward with development.
If you're evaluating a site for data center potential, this is the due diligence guide you can't afford to skip.