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Data Centers in Oklahoma

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Explore Markets in Oklahoma

Oklahoma – Cost-Effective & Resilient Colocation

Executive Summary

Oklahoma is a compelling North American data center market for organizations prioritizing low operational costs and high physical security. Its extremely competitive power pricing and low natural disaster risk make it an ideal location for disaster recovery sites, secondary deployments, and compute-intensive applications. The state offers a stable platform for businesses looking to serve the South Central United States efficiently.

Oklahoma: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong secondary market with good regional and national network access.
Direct Cloud On-Ramps0 — as of September 2025Nearest major cloud hubs are in Dallas; private network extensions are available.
Power CostUS$0.06/kWh (May 2025)Among the lowest industrial power costs in the United States.
Disaster RiskModerate (43.30 NRI Score) as of September 2025Low exposure to major catastrophic events like hurricanes or coastal flooding.
Tax IncentivesYesState-level sales and property tax exemptions are available for qualifying data centers.
Sales Tax4.50% (state base rate) as of September 2025The state's base sales tax rate is competitive for equipment purchases.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Oklahoma provides access to over 10 network carriers as of September 2025. The market features multiple carrier-neutral facilities, primarily in Oklahoma City and Tulsa, ensuring competitive connectivity options for colocation customers.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Oklahoma as of September 2025. Businesses require private network connections to the nearest major cloud hub in Dallas to achieve low-latency hybrid cloud architectures.

Internet Exchange Points (IXPs): Local peering is available through the Oklahoma City Internet Exchange (OKCIX), which facilitates traffic exchange between regional networks. Most national and international peering, however, is routed through the larger exchange points in Dallas.

Bare Metal: Bare metal server options are available from providers operating within the state, offering dedicated compute for performance-sensitive workloads. Service providers like Hivelocity and ColoCrossing can serve the region effectively.

Power Analysis

Average Cost Of Power: The average industrial electricity cost in Oklahoma is approximately US$0.06/kWh as of May 2025. This rate is significantly lower than the national average, providing a direct and substantial cost advantage for high-density server deployments and large-scale colocation footprints.

Power Grid Reliability: Oklahoma's power grid is well-engineered and benefits from a diverse generation mix of natural gas, nuclear, and renewable sources. Major data center corridors have access to redundant power feeds and substation diversity, supporting high uptime requirements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Oklahoma are strategically located to serve the metropolitan areas of Oklahoma City and Tulsa. This proximity provides low-latency connectivity for key local industries, including energy, aerospace, logistics, and back-office operations.

Regional Market Reach: From its central location, Oklahoma can effectively serve a large portion of the South Central United States. It provides a strategic hub for reaching markets across Texas, Arkansas, Kansas, and Missouri with reasonable latency.

Tax Advantage For Data Centers: Oklahoma offers significant tax incentives that lower the total cost of ownership for data center operators and tenants. These include state-level exemptions on sales tax for equipment purchases and property tax abatements for qualifying facilities, directly reducing capital and operational expenditures.

Natural Disaster Risk

Oklahoma has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.30 as of September 2025. The state is insulated from catastrophic coastal events like hurricanes and tsunamis, making it a secure location for critical infrastructure.

The primary environmental risks are atmospheric and geologic. Key hazards include tornados, hail, strong winds, drought, heat waves, and ice storms. Data centers in this region are typically built to withstand high winds and include robust climate control systems to manage temperature extremes.

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