MARKETS · AUSTIN–SAN ANTONIO

Austin and San Antonio data center colocation for AI.

Central Texas is adding capacity fast, but new state rules are changing how large loads connect to the grid. We search here for high-density space for GPU deployments from a single rack to 20 MW+.

LD Advisors · Updated October 25, 2026

MARKET SNAPSHOT · H1 2026

1.7 GW delivered in H1 2026, still near-zero vacancy.

1.7 GW

Completed in H1 2026

796 MW

Net absorption, H1 2026

1,438 MW

Under construction

0.14%

Austin vacancy, Q1 2026 (San Antonio 0.20%)

New supply is leased almost as soon as it delivers. Large requirements also face new ERCOT and Texas PUC rules, so timelines for loads of 75 MW or more need extra care.

Power, incentives and local rules

  • Texas regulators adopted a rule on September 18, 2026 for new loads of 75 MW or more: $50,000 per MW in financial security and a $100,000 study fee.
  • Governor Abbott ordered an audit of ERCOT's large-load queue on August 3, 2026. ERCOT is targeting a December 10, 2026 filing, and energization of new loads of 75 MW or more is paused until then.
  • The state environmental agency (TCEQ) paused new data center permits on September 21, 2026.
  • Texas offers a 6.25% sales tax exemption for qualifying data centers ($200 million investment, 100,000 sq ft and 20 jobs). Lawmakers are reviewing its cost.
  • Locally, Austin requires city council approval for new data centers, and San Antonio's council is set to vote on data center zoning on October 29, 2026.
  • Grid and water: Texas generated about 52% of its electricity from gas, 22% from wind and 7% from solar in 2024 (EIA). San Antonio Water System favors closed-loop cooling and recycled water for data centers. Ask us if you want sites screened for power mix or water use.

Sources: White & Case (Sep 2026); Utility Dive; ERCOT (Sep 11, 2026); Texas Tribune (Sep 21, 2026); Texas Public Radio (Jul 28, 2026); KUT (Aug 27, 2026); KSAT (Oct 19, 2026); Community Impact (Mar 19, 2026).

Common questions

Is there available data center capacity in Austin or San Antonio?

Very little. Austin vacancy was 0.14% in Q1 2026 and San Antonio's 0.20%, per Avison Young. New supply is leasing quickly, so pre-leasing is common.

How do the new Texas large-load rules affect a GPU deployment?

New loads of 75 MW or more face financial security, study fees and an energization pause until ERCOT's audit is filed. Smaller deployments in existing halls fall below that threshold.

Does Texas offer a sales tax break for data centers?

Yes, a 6.25% state sales tax exemption for qualifying projects. It is under legislative review, so we confirm its status for each site.

Can sites here support liquid-cooled GPU racks?

Some can, and more new builds are designed for it. We confirm cooling, rack density and the energization date for each site before we introduce it.

Sources: JLL Midyear 2026; Cushman & Wakefield H1 2026; Avison Young Q1 2026. All markets →

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