Homebuilders have new competition for lots. Data centers
Briefly

Homebuilders have new competition for lots. Data centers
"On the outskirts of Dallas/Fort Worth, where pastureland once stretched uninterrupted to the horizon, thousands of new structures are rising. Windowless. Warehouse-sized. Fenced in and humming with electricity. These are not fulfillment centers or factories. They are data centers, the physical backbone of artificial intelligence. Texas, long known for oil rigs and subdivisions, is now ground zero for the AI economy."
"Data centers require very specific conditions: large, contiguous parcels, immediate access to power substations, proximity to fiber lines, and predictable permitting environments. When a site meets those criteria, land prices can skyrocket, sometimes quadrupling in just a few years. Land that once sold for agricultural use at $40,000 an acre can suddenly command $300,000 or more if it's data center ready."
"Major players are staking enormous claims. Google has poured hundreds of millions into new data centers in Midlothian. Meta is backing massive projects near Temple. Vantage Data Centers has announced plans for a $25 billion AI campus spanning 1,200 acres in West Texas. These facilities don't look flashy, but the land beneath them has become some of the state's most valuable real estate."
Thousands of windowless, warehouse-sized data centers are rising across Texas, concentrated in Dallas/Fort Worth and spreading to Houston, Austin, San Antonio, and Central and West Texas. As of 2025, the state hosts more than 400 operating facilities with dozens more under construction. Major companies including Google, Meta, and Vantage are investing billions in massive sites and campus projects. Data centers demand large contiguous parcels near power substations, fiber lines, and predictable permitting, which can multiply land values many times over. Rapid land-value increases benefit landowners but constrain residential development, push up home prices, and reduce homebuying opportunities for everyday Texans.
Read at www.housingwire.com
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