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The artificial intelligence (AI) boom has unleashed an insatiable appetite for data centers, the very backbone powering this technological revolution. And the scale of expansion is nothing short of extraordinary. Across North America, data center construction is accelerating so rapidly that growth is now spilling far beyond traditional strongholds. For years, Virginia has held the crown as the world’s largest data center market. But that dominance may soon shift.
According to a new report from JLL, Texas is on track to unseat Virginia, a moment the firm describes as a true “inflection point” for the industry. The numbers tell the story. Roughly 64% of the massive 35-gigawatt construction pipeline is now rising outside so-called mature markets like Virginia. Meanwhile, vacancy rates remain extraordinarily tight. At the end of 2025, data center vacancies stood at just 1%, marking the second consecutive year at this historic low.