JLL

JLL is marketing Phase II of the Northern Virginia Gateway development for sale through their Investor Center platform. Northern Virginia is the largest data center market globally, making any available development sites highly valuable and competitive. This appears to be a land or development opportunity in the critical Loudoun County data center corridor. The Phase II designation suggests this is part of a larger master-planned data center development with previous phases already completed or under construction. This requires immediate attention as Northern Virginia sites are extremely sought-after and move quickly.

# Summary Texas is positioned to surpass Virginia as the world's largest data center market, driven by multiple new entrant operators establishing facilities across the state in response to abundant power supply, lower real estate costs, and proximity to tech hubs. While specific megawatt capacity and project values are not disclosed in this market-level analysis, JLL's assessment indicates a structural shift in competitive positioning between the two leading U.S. data center markets. This signal reflects accelerating demand from hyperscalers and cloud providers seeking alternatives to Virginia's saturated market, with Texas offering superior economics and grid infrastructure to support AI and cloud computing growth. The emergence of new operators challenging Virginia's decades-long dominance is unusual given the established nature of regional data center markets and the typical stickiness of operator presence once achieved. Vendors and BD teams should prioritize Texas expansion strategies and build relationships with emerging operators entering the market, as this transition represents a fundamental reallocation of capital and capacity deployment in the sector.