Data center development has been a leading construction story for some time and nowhere more so than in Texas.
It is estimated there are 150 new data centers currently being proposed across the state in addition to the nearly 90 already operating. Real estate firm Jones Lang Lasalle’s recent report on U.S. data centers suggests Texas could overtake Northern Virginia as the largest single market in the entire country within a few years.
This level of growth is not without controversy and local pushback concerning noise, water usage, pollution and the potential impact of higher electricity bills. One county in Texas has even passed a one-year moratorium on data center development.
The data center surge is also beginning to impact other building sectors, particularly residential construction. The Texas Tribune reports homebuilders are being outbid for electricians due to the mass hiring required for the creation of new data centers.
While these facilities continue to grab headlines, it’s important to recognize that other industrial developments are underway across Texas. Leading companies in key sectors such as health care, automobiles and technology are proposing to build new facilities that will boost construction and local economies while creating far more fulltime jobs than data centers.
Multinational pharmaceutical and biotechnology giant PharNovartisNovartis Denton Manufacturing PlantStatusConceptualValue$280MLocation2101 Shady Oaks Dr, Denton TXSectorPrivateTypeIndustrial · New ConstructionView on CCPI → broke ground this month on a $280 million Radioligand therapy (RLT) manufacturing site in Denton, north of Dallas-Fort Worth. RLT is an emerging treatment for patients with advanced cancers. It harnesses the power of targeted radiation and delivers treatment directly to target cells anywhere in the body.
The 46,000 square-foot facility is the company’s fifth RLT facility in the country, part of Novartis’ $23 billion initiative to strengthen domestic pharmaceutical manufacturing and supply chain operations over the next five years. As many as 175 high-paying jobs will be created.
The company said in its media release the Denton site is expected to become fully operational in 2028 and will create new jobs in bioengineering, advanced manufacturing, quality and operation, while also supporting economic growth in Denton and surrounding communities.
Auto manufacturer Toyota is reported to have filed plans with the Texas Comptroller of Public Accounts earlier this month concerning a new assembly facility that will expand the company’s U.S. truck production.
Code-name Project OrcaToyota Motor Manufacturing Texas Expansion (Project Orca)StatusConceptualValue$2BLocationSan Antonio TXSectorPrivateTypeIndustrial · New ConstructionView on CCPI →, the $2 billion facility would likely be located near San Antonio alongside Toyota’s current manufacturing plant.
Just over $1 billion will be invested in the physical building and infrastructure, with the remaining $970 million earmarked for machinery and equipment. Approximately 2,000 new jobs with starting salaries of $123,000 would be added to the 3,700 workforce currently employed at the plant. Construction is expected to begin this year, with manufacturing starting in 2030.
Both Novartis and Toyota are responding to the new era of U.S. tariff protections.
Novartis is aiming to ensure all its key medicines for U.S. patients are manufactured domestically.
“We expect to be in a position by middle of this year where we are not really exposed to tariffs, because we’re able to produce in the U.S. for the U.S. We have inventory on hand,” Novartis CEO Vas Narasimhan told CNBC. “We also have an agreement with the U.S. government that excludes us from any tariffs, we think, but in case that were not to be the case, we’re also future-proofed in the other direction as well.”
Toyota has not formally announced which vehicles will be assembled in the new facility, although the Tacoma pickup seems to be a good candidate. The Tacoma is one of the company’s best-selling vehicles but has recently been assembled in Mexico.
However, new tariffs targeting imported vehicles and components are causing auto manufacturers to review their domestic production levels. Relocating at least part of the Tacoma production to Texas could help Toyota reduce exposure to tariffs. It would also strengthen Toyota’s domestic manufacturing capacity in its largest market while reinforcing the company’s “build where you sell” production philosophy.
Although not specifically motivated by tariffs, a leading technology manufacturer has also recently proposed a new manufacturing facility in Texas.
Responding to the need to develop American resilience to global supply chains issues, the Texas Economic Development Corporation has announced Taiwan-based GlobalWafersGlobalWafers America Semiconductor Manufacturing Facility Phases 3 & 4StatusDesignValue$4BLocation3200 Northgate Dr, Sherman TXSectorPrivateTypeManufacturing · New ConstructionView on CCPI → is investing more than $3.5 billion for a new plant in Sherman that will produce the advanced large silicon wafers used in the production of microelectronic devices such as transistors and integrated circuits.
The facility will employ hundreds of engineers and skilled workers at all levels, creating what the company describes as “a beacon for American innovation.”
Data centers are certainly newsworthy and involve billions of investment dollars.
However, Texas industrial development goes well beyond any single sector.
As the Texas Economic Development and Tourism Office expresses it, “Texas remains the premier destination for companies to relocate and expand in the U.S. The inquiries from large companies and small businesses alike are not slowing down.”
