Developers face tens of billions in costs to build Texas data centers

developers: In this context, developers are the companies and project sponsors responsible for financing, designing, constructing, and operating large AI data-center campuses. They are relevant because Texas projects require substantial spending on buildings, power infrastructure, cooling systems, and other equipment, with advanced AI chips often excluded from headline construction estimates. Supply chain: Shortages of transformers, switchgear, batteries, and other electrical equipment are contributing to delays and higher costs for US AI data-center construction. Texas infrastructure: Texas has become a major AI data-center hub, but rapid expansion is increasing pressure on electricity generation, transmission, water supplies, and related infrastructure. Construction economics: A large gigawatt-scale data center can require tens of billions of dollars to develop, while chip costs may be counted separately from the facility construction budget.