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Data Centers, Meatpacking, Renewables Drive Amarillo's Second-Fastest Economy Growth
The city's rise to the second-fastest-growing midsize economy rests on documented industry drivers and measured employment shifts tracked through mid-2025.
How we reported this
Amarillo ranks as the second fastest-growing midsize economy among the top 100 U.S. cities, driven by data center construction, meatpacking, and renewable energy. This standing reflects steady accumulation of activity across those sectors rather than any single recent event.
Path to the Current Ranking
The position developed through expansion in data center projects alongside established meatpacking operations and renewable energy installations. These elements combined to lift the local economy within the broader group of midsize cities, with construction activity providing visible momentum in recent periods.
Employment totals reached 96,902 workers, supporting $78.8 million in sales tax revenue and $52.8 million in property tax revenue during the 2024/2025 budget period. The figures illustrate the scale of activity that underpins the growth ranking.
Employment and Revenue Indicators
The unemployment rate stands at 3.5 percent as of May, marking a 0.4 percent increase tied primarily to Tyson Foods. At the same time, total Panhandle employment rose by 750 positions from external construction jobs. Retail sales increased 18 percent compared with the same period one year earlier, while year-to-date sales rose 11 percent. New car sales declined 4 percent and used car sales declined 1 percent.
Housing prices increased 4 percent, accompanied by a 94 percent rise in new housing starts that added 34 units relative to the prior year. Higher-priced homes have continued to sell below listing prices, showing a market that remains active despite selective price adjustments.
These patterns emerged from the same set of industry drivers that produced the overall growth ranking. Construction linked to data centers contributed to both job gains and housing demand without requiring any new policy announcements.
Forward Indicators
Continued monitoring of construction volumes and retail performance will show whether the established drivers sustain the present trajectory. Local businesses and residents can track monthly employment releases and sales tax collections for the clearest signals of ongoing movement.