Texas can enjoy a boom from AI and other tech. But here’s what has to happen first | Opinion

Texas has always been a beacon of innovation and economic prosperity, rooted in the free-market principles that built our state into a global powerhouse. Today, Texas offers one of the most business-friendly environments in the United States, with North Texas at the heart of this success story. With a population of 8.5 million and an economy larger than most states, our region is among the fastest-growing in the nation, fueled by a young, energetic, and high-skilled workforce.

To sustain this momentum, Texas must remain committed to fostering the free market practices that have been the foundation of our success, delivering reliable, affordable power to Texans and attracting businesses that drive growth and innovation.

Encouraging the growth of data centers, a crucial and growing part of our internet infrastructure, is a critical step in ensuring that Texas remains competitive. More and more Texas towns are hosts to a growing network of data centers, facilities that house the computers, servers and other equipment serving as the internet infrastructure — a need growing by rapid advances in AI technology.

Data centers are more than just infrastructure; they are engines of economic opportunity. They drive job creation, attract significant investment and generate critical tax revenue for communities.

North Texas, with its diverse economy and dynamic infrastructure, is uniquely positioned to lead this next wave of growth. Given that our region is home to the fifth-highest concentration of tech workers in the U.S., we are a natural hub for digital innovation — and poised to lead in the development of data centers in Texas.

Building data centers will help strengthen North Texas’ role as a tech hub. But it’s also vital for America’s national security interests. By reducing reliance on foreign technology and networks, we can protect critical systems from cyberattacks and espionage. Investing in domestic digital infrastructure supports advanced technologies like AI and quantum computing, ensuring that the United States remains a global leader in defense and intelligence capabilities.

The stakes are high. If Texas fails to act decisively, we risk losing this opportunity to other states with more welcoming regulatory environments or, worse, to foreign competitors such as China, which has invested more than 43.5 billion yuan ($6.1 billion) in a nationwide project to build computing data centers over the next few years. It is imperative that we keep these centers in Texas for the sake of our data privacy and to ensure that America continues to win the tech race.

Texas must do its part and rise to the challenge. Creating a regulatory framework that balances the need for reliable power generation with the growing energy demands of advanced technologies such as AI is critical to maintaining competitive energy prices and driving continued economic expansion for the Lone Star State. In addition, encouraging data center growth in Texas has the dual benefit of not only strengthening our economy but also strengthening the reliability of our energy grid. Most data center facilities come equipped with their own backup power supplies and, in times of emergency, can supply energy back to the grid. This unique element of data center development can help ensure that reliability and development go hand in hand.

North Texas is ready to lead. Our region boasts one of the most stable and diverse economies in the country, a thriving technology sector, and world-class infrastructure that makes us a magnet for growth. Data centers represent the next frontier, offering a unique opportunity to combine economic development with enhanced energy reliability. By fostering data center growth and upholding Texas’ free market principles, North Texas can secure its position as a national leader in innovation and prosperity – and help the United States maintain its global lead around this critical technology sector.

The North Texas Commission urges lawmakers to embrace this vision, ensuring Texas remains open for business, competitive on the global stage, and prepared to lead the future of technology and energy. Let’s build on the principles that made Texas great and continue to drive prosperity for generations to come.