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Data Centers in Oklahoma

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Oklahoma – Low Costs & Central US Access

Oklahoma is a strategic data center market for companies requiring low operating costs and broad reach into the central United States. The state combines exceptionally low power prices, significant tax incentives, and a low-risk natural disaster profile, making it a compelling choice for workloads that are not hyper-sensitive to latency.

Oklahoma: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional connectivity; limited long-haul fiber routes compared to primary hubs.
Direct Cloud On-Ramps0 – as of September 2025Nearest major on-ramp hub is Dallas, TX. Private network extensions are available.
Power CostUS$0.05/kWh – as of May 2025Among the lowest industrial power costs in the United States.
Disaster RiskModerate (43.30) – as of September 2025Low overall score with manageable risks from specific weather-related events.
Tax IncentivesYes – DC-specificState sales and property tax exemptions are available for qualifying data centers.
Sales Tax4.50% – as of September 2025This is the state base rate; local taxes may apply.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The state features a healthy and competitive network environment, with over 10 providers operating 12 data centers, as of September 2025. This ensures carrier-neutral facilities offer multiple options for redundancy and cost management.

Direct Cloud On-Ramps: Oklahoma has 0 direct cloud on-ramps from major hyperscalers, as of September 2025. Secure, private connections to cloud providers are typically established via dedicated circuits to the nearest major interconnection hub in Dallas, Texas.

Internet Exchange Points (IXPs): Public peering is limited within Oklahoma. Most traffic is exchanged privately between carriers or routed through major peering points in Dallas, which improves regional performance.

Bare Metal: Bare metal server options are readily available from providers. This allows businesses to deploy dedicated, high-performance computing without managing their own hardware. Providers like Hivelocity and phoenixNAP can serve the region.

Power Analysis

Average Cost Of Power: Oklahoma offers one of the most competitive power markets in the nation, with an industrial electricity rate of US$0.05/kWh, as of May 2025. This exceptionally low cost directly reduces a data center's total cost of ownership, especially for high-density deployments.

Power Grid Reliability: The state's power grid is well-engineered to support industrial customers. Data center corridors typically have access to redundant power feeds and multi-substation support, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Oklahoma City and Tulsa serve the state's primary economic hubs, supporting industries like energy, aerospace, and logistics. Proximity enables low-latency connectivity for local enterprise operations.

Regional Market Reach: From its central location, Oklahoma can effectively serve a large portion of the Midwest and South Central United States. It provides a strategic point of presence for reaching markets from Texas to Kansas and Arkansas.

Tax Advantage For Data Centers: Oklahoma provides significant, data center-specific tax exemptions. These incentives cover the sales tax on computing equipment and electricity as well as property taxes, substantially lowering both initial capital investment and ongoing operational expenses.

Natural Disaster Risk

Oklahoma has a Moderate natural disaster risk profile with a FEMA NRI Score of 43.30 out of 100, as of September 2025. While the overall risk is low compared to coastal regions, operators must engineer facilities to withstand specific, frequent weather events. Key risks include tornadoes, severe wind, drought, hail, earthquakes, and winter weather.

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