West Texas Beckons Hyperscalers with Abundant Power and Proximity to Major Infrastructure

Hyperscalers such as Google (GOOG), Microsoft (MSFT), and Meta (META) are moving into West Texas due to its abundant power availability and proximity to major transmission infrastructure, according to Galaxy Digital's Vice President of Data Center Capital Markets, Simrit Dhinsa.

Dhinsa noted that building big AI campuses in West Texas is often easier than building out power infrastructure in big metro areas, which are running up against grid constraints. He also mentioned that the region has easier access to fiber, labor, and water, making it an increasingly appealing base for large-scale AI data centers.

Galaxy Digital itself has made the shift from Bitcoin mining to AI infrastructure at its Helios site in West Texas, delivering the first 200 MW of an 800 MW deal to CoreWeave (CRWV) under a 15-year lease. The company secured ERCOT approval for 1.6 GW total at Helios, locking in capacity ahead of new regulatory batching rules meant to weed out speculative land-banking.