Spotlight on Texas: Exploring the State’s Huge Potential for Commercial and Infrastructure Development
In recent years, Texas has undergone an exciting transformation, fast emerging as a top destination for both business and people. This success is driven by several key factors, including its geographically central location and ample land availability, affordability and relatively low cost of living compared with the national average. Moreover, the compelling personal and corporate tax incentives, pro-growth and business-friendly stance and regulatory environment, all leading to a buoyant economy.
Large organizations are increasingly relocating their headquarters and operations from California and other states to Texas. Data from S&P Global reveals that between 2021 and 2024, 200 companies moved to Texas, noting that firms headquartered in the state attracted close to $10 billion in venture capital investment in 2025.
With this momentum also comes an influx of new people and skills, real estate development, employment opportunities across industries, and significant economic benefits. Much of this growth is attributable to the technology sector and the artificial intelligence (AI) race, with Texas claiming its place as a leading tech hub positioned at the forefront of innovation. Consequently, there have been several notable multibillion-dollar investments flowing in from global technology leaders into everything from data centers and AI-ready infrastructure to advanced chip manufacturing and renewable energy.
The considerable power requirements of data centers and AI are well known, and, encouragingly, decarbonization goals are firmly on the agenda for the future of data centers in Texas. Attention has turned to how to meet future demand sustainably and help with grid capacity and resilience by diversifying the energy portfolio and supporting the clean energy transition, while simultaneously enhancing surrounding communities.
Texas offers the optimum space availability and weather conditions to tap into renewables and, according to the State of Renewable Energy Dashboard published in 2025 by the Environment Texas Research & Policy Center, is in fact top in the U.S. for wind power generation, and second for solar power and battery storage — with around 34% of the electricity consumed in the state in 2024 coming from wind and solar sources.
Robust Growth Across the Board
Alongside technology, Texas’s economic boom is impacting all sectors, creating a whole life cycle of new development projects and opportunities, as well as investing heavily in communities. The rising population is leading to growth in every sector, from residential and commercial real estate, healthcare and education buildings to hospitality and entertainment, industrial and logistics facilities, and retail. On the latter, Colliers research shows that Texas is firmly leading the U.S. in retail construction. Accommodating all of this growth also requires enhancing infrastructure, including roads, transportation, power delivery, and utilities.
At HDR, we are seeing this appetite firsthand through a large uptick in work in the state across our roads and transportation, power and water, healthcare, life sciences, hotel and leisure, and civic divisions, as well as data centers, offices, and mixed-use designs. As interest from clients grows, who are increasingly recognizing the tremendous potential of Texas and seeking our advice on site selection and commercial real estate opportunities, we have expanded our footprint and established teams in Houston, San Antonio, Austin, Dallas and Fort Worth.
Texas is well placed at the cutting edge of industry, development and investment, all of which converge to create a thriving and self-sustaining ecosystem. Importantly, this adds societal value by bringing positive opportunities for people, creating new communities and improving existing ones.
Looking ahead, these positive trends will continue, and momentum will only intensify within the next five years to reach incredible new heights, with more investment, people and businesses embracing Texas as the next big thing and propelling ongoing growth across key sectors. We will see more economic development in communities throughout the state, enhanced through human-centric placemaking and regeneration, and an increase in responsible development that supports Texas’ phenomenal evolution.
