Texas is a data center job hotspot in the tech boom
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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: Microsoft is expanding its Texas data center footprint with two new facilities in Medina County, west of San Antonio. The $765 million project will span 489,400 square feet, the Express-News reported in February.
- Construction is set to begin in June and finish in July 2027.
- Another $700 million project, also in Medina, will add 490,000 square feet of data center space.
- Microsoft also has a cluster of data centers on over 300 acres on the far West Side of San Antonio.
The big picture: This expansion is 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.
- ERCOT forecasts that electricity demand from major users like data centers will jump nearly 60% from 2024 to 2025.
What to watch: Microsoft is addressing its environmental impact.
- It recently signed a 25-year deal with Chestnut Carbon to restore 60,000 acres in Texas, Arkansas and Louisiana by planting over 35 million trees to offset its carbon emissions.