More and more chip manufacturing and data centers are calling Texas home, drawing high levels of out-of-state migration by those seeking well-paying jobs in the technology sector.
As reported by Dice, a hub for technology job openings in the United States, Texas is the country’s only state with five cities among the top 25 destinations for tech jobs, and second only to California in overall job listings.
Since the federal CHIPS and Science Act was introduced in 2020, more than 50 new U.S. semiconductor projects have been announced across the country, representing $210 billion in total investment commitments. More than $61 billion of that has headed for Texas.
Samsung Electronics stands out, both for their initial commitment to Texas and for the continual expansion their manufacturing operations.
The chip maker is currently building a $17 billion plant in Taylor, just east of Austin, that promises to deliver 2,000 thousand new fulltime jobs and millions in additional spin-off investments. Production is expected to begin in 2025.
Construction activities at the Taylor site injected $11.6 billion into the local economy in 2023 alone and supported a total of 8,897 direct and 9,264 indirect construction jobs.“We believe the new site in Taylor will bridge our 28-year history in central Texas with a hopeful future full of possibility,” the company says. “Bringing new jobs and valuable training opportunities, our investment in Taylor, Samsung’s largest-ever in the U.S., will build supply chain resilience of crucial logic chips while contributing to the development of the local community.”
Chip suppliers are joining the Texas tech rush. North of Austin, MGC Pure Chemicals America Inc., a manufacturer of ultra-clean gas for the semiconductor industry, is considering investing as much as $130 million to double its current production capacity in order to better serve major clients like Samsung. MGC joins others like LS Electric Co. Ltd., semiconductor maker KoMiCo Technology Inc., and Schunk Xycarb Technology Inc.. Each plan investments in the tens of millions of dollars.
The Texas hi-tech boom has more than chip manufacturing going for it. Massive new data centers have being proposed as well.
Local media reports 1,400 acres of land on Route 79 northeast of Austin, known as the Hutto Megasite, is about to witness new investment and construction worth billions of dollars.
The Hutto Economic Development Corp. recently approved several purchase-and-sale agreements for economic development projects at the megasite. It is believed a new data center, more flex warehouses and additional logistics spaces are being considered by major companies. Hutto’s EDC is also considering agreements that could bring additional mixed-use, commercial and office space to the site.
Support infrastructure includes the construction of an $18 million “spine” road to provide access to the interior of the megasite. Roadwork by contractor Jordan Foster Construction LLC broke ground in January, with completion scheduled for August this year.Two companies that had previously expressed interest in the Hutto Megasite are ready to move ahead with their plans.
Dallas-based Skybox Datacenters LLC and San Francisco-based Prologis Inc. are about to build a massive data center that could eventually encompass 3.9 million square feet of space in six buildings, covering nearly 160 acres. The estimated investment is around $10 billion. Company representatives say the first building is already leased with completion of it and two others expected in 2026.
Skybox CEO Rob Morris told local media current demand for data centers is “insatiable.” He said while the company has built 640 megawatts of total capacity over its entire history, it now has double that amount under development. Hutto and Central Texas are key destinations due to the region’s “favorable development environment, electrical grid and infrastructure.”
Meanwhile, Titan Development, based in Albuquerque, NM, is ready to move ahead with a 188-acre complex of speculative high-tech industrial space at Hutto. Buildings would range in size from 200,000 to over one million square feet.
South of Austin, the Caldwell County Commissioners Court has recently approved tax abatement incentives for the first $1.3 billion phase of a “turnkey data campus center” planned by Prime Data Centers LLC. The facility, code-named Project Snow, would total $4.2 billion in capital investment for all planned phases, adding significant tax revenue to the largely rural district.
These proposed data centers join recently-approved projects in Round Rock, just north of Austin, announced by Las Vegas-based Switch Inc. and Seattle-based Sabey Data Center Properties LLC. Amazon.com Services LLC also hopes to add a data center to its 149-acre project in Round Rock as part of a planned $250 million last-mile delivery station which recently gained approval from the city’s council.
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