What Homeowners & Homebuyers Should Know
Data Centers in Texas: What Exactly Are They—and Why Should I Care?
I'll admit something.
Until recently, I couldn't have given you a very good explanation of what a data center actually does.
I'd heard the term. I knew it had something to do with computers, artificial intelligence and “the cloud.” And I'd certainly heard a lot about data centers being built in Texas.
But if someone had asked me, “Jacque, what exactly happens inside one?” I probably would have given them a pretty vague answer.
So I decided to find out.
And the more I learned, the more I realized this isn't just a technology story.
It's a community story. And for those of us in real estate, it's also a location story.
Because if someone told me a large data center was going to be built near my home, I'd have questions.
So let's start with the most basic one.
What exactly IS a data center?
In the simplest terms, a data center is a facility that houses computer servers and other equipment used to store, process and move digital information.
Think of it as a giant, highly specialized building full of computers.
Those computers support many of the things we use every day—cloud storage, websites, online banking, streaming, business applications, social media and increasingly, artificial intelligence.
When we say something is “in the cloud,” it isn't floating around somewhere above us.
The cloud is ultimately computers and servers sitting somewhere.
And those computers need somewhere to live.
That's what a data center provides.
So why are we suddenly hearing so much about them?
We've always needed data centers.
What's changed is how much computing we're doing.
We're storing more information, using more online services and increasingly using artificial intelligence that requires enormous amounts of computing power.
More computing means more servers.
More servers mean more facilities.
And those facilities require land, electricity, cooling systems, communications infrastructure and, depending on the design, water.
Texas has become a major destination for this growth.
A June 2026 Texas Tribune analysis identified at least 248 planned data centers in Texas, based on industry databases and research. The planned projects are spread throughout the state, with significant concentrations in several regions.
But here's an important distinction:
Planned does not mean guaranteed.
A project can change, be delayed, be canceled or never make it through the necessary approvals and infrastructure requirements.
And right now, Texas is taking a much closer look at these projects.
In August 2026, Gov. Greg Abbott directed the Public Utility Commission of Texas and ERCOT to audit data centers moving through the state's electric-grid interconnection process. The audit must be completed before those projects can move forward with grid connections.
So this is very much a developing story.
Why Texas?
There are several reasons.
Texas has available land, major population centers, extensive fiber infrastructure and a large energy market.
Companies looking to build large facilities also look at the availability and cost of power, water, land and connectivity.
And Texas has something else:
Room to grow.
But growth always comes with questions.
Do data centers create jobs?
Yes—but this is one of those questions where I think we need to look beyond the headline.
Building a large data center can create significant construction and infrastructure employment. Electrical, mechanical, engineering, technology, security and other specialized workers may be involved.
Once the facility is operating, it still requires people to maintain the building, equipment, security and technology.
But a giant building does not necessarily mean hundreds or thousands of permanent employees.
So if a community is told a proposed data center will create jobs, I'd want to know:
How many?
How many are construction jobs?
How many will be permanent?
What types of jobs are they?
Those are much more useful questions than simply hearing that a project will create jobs.
Okay, but why should a homeowner care?
This is where my real estate brain kicks in.
I've had clients who absolutely did not want to purchase a home near power lines.
Other buyers don't care about power lines at all.
Some don't want to back up to a busy road.
Some don't want commercial property nearby.
Others love being close to shopping, restaurants and businesses.
There isn't one list of things that bothers every buyer.
What one person considers no big deal can be a deal-breaker for someone else.
And that's important because a home doesn't exist in a vacuum.
Its location, surroundings, views, traffic, noise and nearby development can all affect how attractive it is to a future buyer.
That doesn't mean a data center automatically lowers the value of nearby homes.
It means anything that affects a property's desirability can potentially affect its marketability, and buyers have different ideas about what they want to live near.
What if the data center isn't there yet?
Here's another real estate question I think is important.
Let's say you're looking at a beautiful home next to 10 acres of open land.
Today, that's your view.
Maybe there are trees.
Maybe there is wildlife.
Maybe it's simply peaceful.
But who owns those 10 acres?
And what can eventually be built there?
We can't predict the future.
But we can investigate what is already happening.
If that property matters to my decision, I'd want to find out whether there are development applications, permits or other proposals already in the works.
I'd want to check available public information and contact the appropriate local planning, development or permitting department.
That doesn't mean someone can tell me what will happen five or ten years from now.
It means I'm doing my due diligence.
Because there's a big difference between:
“Nothing is planned right now.”
and
“Nothing can ever be built here.”
Those are two very different statements.
And I'll admit something else.
I live in Montgomery County, and I've watched our area grow.
I understand it.
I'm in real estate. People need homes. Businesses need places to operate. Communities need roads, utilities and infrastructure.
But I've also watched large wooded areas get cleared for development.
And I'll be honest:
Sometimes I drive past those areas and feel a little sad.
I liked the trees.
I liked the open land.
I understand why it's happening, but that doesn't mean I don't notice what has been lost.
I don't think that makes growth bad.
I think it means we should be willing to ask whether we can grow thoughtfully.
What does the community gain?
What changes?
What infrastructure is required?
What happens to the land?
And what does the community give up?
Those questions apply to data centers, distribution centers, new neighborhoods and all kinds of development.
So why am I learning about data centers?
Because if one were being built near my home, I would want to know more than:
“It's a data center.”
I'd want to know:
How big is it?
How close is it?
What does it require?
How much electricity?
How much water?
What kind of infrastructure?
How many jobs?
What will I see?
What will I hear?
And what happens to the surrounding area?
That's what we'll explore in Parts 2 and 3.
Because now that we know what a data center is, the next question is:
What does it actually take to operate one?
Know what it is. Know what it means. Make an informed decision.
Jacque Swanner | INC Realty
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