Market Drivers

The Permian Basin—spanning West Texas and Southeast New Mexico—is one of the most energy-rich regions in the United States. It offers a rare convergence of low-cost energy, industrial infrastructure, and policy support, making it a prime location for next-generation digital infrastructure.

Producing approximately 113 billion cubic feet of natural gas per day (U.S. Energy Information Administration), the Permian Basin supports both regional grid supply and cost-effective, behind-the-meter power generation. This enables data centers to generate electricity directly on-site, reducing transmission losses, lowering operating costs, and accelerating deployment timelines.

Texas has earned its reputation as a preferred destination for large-scale data centers. Its central geographic location, stable electric grid, and historically low risk of natural disasters make it uniquely resilient. Add in a highly educated workforce and a pro-growth regulatory climate, and the state becomes a strategic launchpad for AI, HPC, and GPU-intensive operations.

Digital infrastructure projects in Texas benefit from a suite of powerful development incentives. These include poential sales tax exemptions on equipment and local property tax abatements, along with fast-track permitting and business-friendly zoning policies. The result is a development environment that reduces friction and unlocks speed-to-market advantages.

The Permian Basin offers more than energy. Its proximity to fiber optic networks, multiple intrastate natural gas transmission lines, and CO₂ pipeline infrastructure makes it one of the most connected industrial corridors in North America. Add in abundant, scalable land with repurposed water from O&G production, and the region delivers infrastructure-ready sites with minimal development lift.