room to improve

New report ranks Texas in the middle for sustainable development

Texas ranked 24th on SmileHub's list of the best states for sustainable development. Photo via Getty Images.

Texas appears in the middle of the pack in a new ranking of the best states for sustainable development.

SmileHub, a nonprofit that rates charities, examined 20 key metrics to create its list of the best states for sustainable development. Among the metrics it studied were the share of urban tree cover, green buildings per capita and clean energy jobs per capita. Once SmileHub crunched all the numbers, it put Texas in 24th place — one notch above average.

The United Nations defines sustainable development as “meeting present needs without compromising the chances of future generations to meet their needs.”

Here’s how Texas fared in several of SmileHub’s ranking categories:

  • No. 2 for water efficiency and sustainability
  • No. 7 for presence of wastewater reuse initiatives
  • No. 18 for environmental protection charities per capita
  • No. 25 for green buildings per capita
  • No. 34 for clean energy jobs per capita
  • No. 34 for industrial toxins per square mile
  • No. 38 for share of tree cover in urban areas

California leads the SmileHub list, followed by Vermont, Massachusetts, Oregon and Maryland.

When it comes to water, a 2024 report commissioned by Texas 2036, a nonpartisan think tank, recommends that Texas invest $154 billion over the next 50 years in new water supply and infrastructure to support sustainable growth, according to the Greater Houston Partnership.

“The report underscores a stark reality: a comprehensive, sustainable funding strategy for water is necessary to keep Texas economically resilient and competitive,” the partnership says.

Trending News

A View From HETI

A new report predicts that Texas will be home to 30 percent of the U.S. data center market by 2028. Photo via Chevron.com

Data centers are proving to be a massive economic force in Texas.

For instance, a new report from clean energy company Bloom Energy predicts Texas will see a 142 percent increase in its market share for data centers from 2025 to 2028. That would be the highest increase of any state.

Bloom Energy expects Texas to exceed 40 gigawatts of data-center capacity by 2028, representing a nearly 30 percent share of the U.S. market. A typical AI data center consumes 1 to 2 gigawatts of energy.

“Data center and AI factory developers can’t afford delays,” Natalie Sunderland, Bloom Energy’s chief marketing officer, said in the report. “Our analysis and survey results show that they’re moving into power‑advantaged regions where capacity can be secured faster — and increasingly designing campuses to operate independently of the grid.”

“The surge in AI demand creates a clear opportunity for states that can adapt to support large-scale AI deployments at speed,” Sunderland adds.

Further evidence of the data center explosion in Texas comes from ConstructConnect, a provider of data and software for contractors and manufacturers. ConstructConnect reported that in the 12-month span through November 2025, data-center construction starts in Texas accounted for $11 billion in spending. At $12.5 billion, only Louisiana surpassed the Texas total.

Capital expenses for U.S. data centers were expected to surpass $425 billion last year, according to ratings agency S&P Global.

ConstructConnect also reports that Texas is among five states collectively grabbing 80 percent of potential data center construction starts. Currently, Texas hosts around 400 data centers, with close to 60 of them in the Houston market.

A large pool of data-center construction spending in Texas is flowing from Google, which announced in November that it would earmark $40 billion for new AI data centers in the state.

“Texas leads in AI and tech innovation,” Gov. Greg Abbott proclaimed when the Google investment was unveiled.

Other studies and reports lay out just how much data centers are influencing economic growth in the Lone Star State:

  • A study by Texas Royalty Brokers indicates Texas leads the U.S. with 17 clusters of AI data centers. The study measured the density of AI data centers by counting the number of graphics processing units (GPUs) installed in those clusters. GPUs are specialized chips built to run AI models and perform complex calculations.
  • Citing data from construction consulting company FMI, The Wall Street Journal reported that spending on construction of data centers is expected to rise 23 percent in 2026 compared with last year. Much of that construction spending will happen in Texas. In the 12 months through November 2025, the average data center cost $597 million, according to ConstructConnect.
  • Data published in 2025 by commercial real estate services company Cushman & Wakefield shows three Texas markets — Austin, Dallas and San Antonio — boast the lowest construction costs for data centers among the 19 U.S. markets that were analyzed. The mid-range of costs in that trio of markets is roughly $10.65 million per megawatt. Houston isn’t included in the data.

Although Houston isn’t cited in the Cushman & Wakefield data, it nonetheless is playing a major role in the data-center boom. Houston-area energy giants Chevron and ExxonMobil are chasing opportunities to supply natural gas as a power source for data centers, for example.

“As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data-center investments driven by its unique position at the intersection of energy, technology, and innovation,” says the Greater Houston Partnership.

Trending News