Single AI Data Center in Texas Could Cost $38 Billion—Here's the Breakdown

A new analysis reveals that constructing a single 1-gigawatt artificial intelligence data center facility in Texas carries an estimated upfront cost of approximately $38 billion, exposing the staggering capital requirements now facing the technology industry. Bloomberg Intelligence's cost breakdown shows why data center construction has become the limiting factor in AI infrastructure expansion, with semiconductor chips and servers dominating expenses at $17.1 billion, followed by $3 billion for power systems, $1.66 billion for cooling infrastructure, and $1.07 billion for cabling. The remaining $2.64 billion covers land acquisition, design, and construction services.