Texas Data Center Buildout Faces Spiraling Costs as Power and Materials Squeeze Stretches Budgets

Texas is becoming the epicenter of a multibillion-dollar infrastructure challenge: building data centers for artificial intelligence is now far costlier than the computing hardware that goes inside them. A new analysis reveals why a single 1-gigawatt facility in the state requires roughly $14 billion in development spending—a figure that excludes the AI chips themselves and underscores the mounting financial pressure on the companies racing to build AI infrastructure.