Tech boom brings data center jobs to Texas
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Texas continues to lead the charge in data center employment, with the second-highest number of jobs nationwide, new data shows.
Why it matters: Companies, investors and the government are pouring tons of money and resources into data centers to help power AI and other next-gen tech. But there's debate over how many jobs they'll create and whether they're worth the energy required to run them.
Driving the news: California, Texas, Florida, New York and Georgia collectively make up more than 40% of U.S. data center employment, per the U.S. Census Bureau's Quarterly Workforce Indicators.
- At 17%, California has the highest share in the nation, followed by Texas, with 10% (47,856 jobs).
By the numbers: Texas has seen a 38% increase in data center jobs from 2018 to 2024.
- Travis, Dallas, Collin, Harris and Bexar counties accounted for nearly 76% of the state's total data center employment in the second quarter of 2024.
Caveat: These numbers include data centers as well as web hosting and a few other related fields.
Zoom in: ECL, a data center solutions company, is constructing an $8 billion facility on a 600-plus-acre site east of Houston, Data Center Frontier reported. The first phase could open this summer.
- Meanwhile, Houston-based NRG Energy is planning to build four natural gas plants to power the state's increase in data center energy demands.
- Near San Antonio, Microsoft is also building two data center facilities. The $765 million project will span 489,400 square feet, the Express-News reported in February.
The big picture: These expansions are in line with the broader surge in data center investments by Big Tech, as the industry faces mounting demand to support AI's growing energy needs, Axios recently reported.
- The boom has led CPS Energy to invest $1.3 billion to upgrade its infrastructure to meet demand.
The bottom line: ERCOT forecasts that electricity demand from major users like data centers will jump nearly 60% from 2024 to 2025.