Texas is experiencing one of the strongest waves of industrial construction in its history, driven by semiconductor factories, large-scale energy projects and rapidly expanding data center development. But despite booming investment and job creation, industry leaders say the state could unlock even greater growth if industrial sites were prepared faster and more strategically.
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Inspired by recent headlines on major projects near Katy and in Waller County, attention is increasingly turning to how Texas has positioned itself as a magnet for manufacturing, infrastructure and logistics development. Semiconductor manufacturers alone have committed tens of billions of dollars, and those investments now represent nearly a quarter of all U.S. semiconductor construction spending. Additional fabs underway in Sherman and Taylor are adding to the momentum.
Beyond chips, Texas is also emerging as a dominant force in next-generation energy production. Hydrogen facilities, LNG export terminals and large chemical plants are fueling regional economies and providing thousands of specialized construction jobs. These projects require highly technical contractors and long-term infrastructure planning, particularly around power and utilities.
The digital sector adds another fast-growing layer. Texas has become a national hub for hyperscale data centers and cloud infrastructure, expanding from just over a million square feet of capacity a few years ago to multiple times that volume today. The growth mirrors Texas’s unique advantage: abundant energy, available land, and a skilled technical workforce capable of supporting both advanced manufacturing and complex infrastructure needs.
Several factors are driving this surge:
Looking ahead, experts expect even deeper collaboration between technology firms and manufacturers, more automation, increased use of smart factories and intensified sustainability requirements. Digital manufacturing and robotics will likely reshape Texas industrial operations as companies attempt to improve quality, speed and global competitiveness.
However, Texas’s rapid growth also exposes a key weakness: site readiness. Market leaders say that simply offering available land is not enough. Manufacturers and logistics companies now want parcels that already have cleared due diligence, rapid permitting pathways and utility planning in motion — power, water, wastewater and broadband included. Speed to market is now a competitive factor equal to tax incentives.
Without those improvements, Texas could risk losing projects to states like Georgia and South Carolina, which have aggressively invested in shovel-ready industrial parks, pre-permitted sites and pre-built utility corridors. For Texas to remain the leader in U.S. industrial growth, its infrastructure planning will need to move at the same pace as its private-sector investment.
Originally reported by Texas Real Estate Research Center.
