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Data Centers in Oklahoma City

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Oklahoma City – Low-Cost, Low-Risk Central US Hub

Executive Summary

Oklahoma City is a strategic secondary market for businesses requiring a low-risk, low-cost central United States footprint. Its exceptionally low power costs and favorable tax climate make it a prime location for disaster recovery sites and secondary compute nodes. This market ensures reliable infrastructure access for serving the American heartland without the high operational expenses of Tier 1 coastal hubs.

Oklahoma City: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA solid secondary market with good regional and national connectivity options.
Direct Cloud On-Ramps0 — as of September 2025Nearest major on-ramp hub is Dallas. Private network extensions are available.
Power Cost$0.06/kWh — as of May 2025Significantly below the US average, offering a major operational cost advantage.
Disaster RiskModerate (Score: 43.30) — as of September 2025Overall risk is moderate, with known hazards but no coastal exposure.
Tax IncentivesYesState provides sales and property tax exemptions for qualifying data centers.
Sales Tax4.50% (State Base Rate) — as of September 2025Favorable state-level sales tax, enhancing the market's cost-effectiveness.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Oklahoma City provides access to over 8 carriers as of September 2025. The market supports a carrier-neutral environment, offering sufficient options for network redundancy and competitive pricing for a city of its size.

Direct Cloud On-Ramps: The market has 0 direct public cloud on-ramps as of September 2025. Secure, low-latency access to hyperscale clouds like AWS, Google Cloud (GCP), and Microsoft Azure is achieved via private network connections to the major interconnection hub in Dallas.

Internet Exchange Points (IXPs): The primary local exchange is the Oklahoma City Internet Exchange (OKCIX). It facilitates local traffic exchange, improving network performance and reducing latency for regional users. Most national and international peering is routed through Dallas.

Bare Metal: Bare metal server options are available in the region, typically through providers with a presence in the broader South Central US. Services from providers like Hivelocity offer dedicated compute resources for performance-intensive applications.

Power Analysis

Average Cost Of Power: The average industrial power cost in Oklahoma City is approximately $0.06/kWh as of May 2025. This rate is among the lowest in the nation and provides a substantial long-term operational cost advantage for high-density deployments. The grid mix is primarily composed of fossil fuels (~60%), with significant contributions from nuclear (~20%) and renewables (~20%).

Power Grid Reliability: The power grid serving the primary data center zones is well-engineered and reliable. Facilities typically have access to redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Oklahoma City are situated to serve the city’s core business districts and key industries, including energy, aerospace, logistics, and back-office operations. This proximity supports low-latency requirements for local enterprise and government clients.

Regional Market Reach: Oklahoma City's central location makes it an effective hub for serving a large geographic area, including Oklahoma, Kansas, Arkansas, and North Texas. It is a logical point of presence for content delivery and application hosting for over 15 million people within a 250-mile radius.

Tax Advantage For Data Centers: Oklahoma offers compelling, data center-specific tax incentives. Qualifying facilities benefit from long-term exemptions on both sales tax for equipment purchases and property tax, which directly reduces capital and operational expenditures.

Natural Disaster Risk

Oklahoma City has a Moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.30 as of September 2025. The location is free from hurricane and coastal flooding risks, but it is exposed to specific regional hazards.

Key risks include tornadoes, strong winds, hail, drought, and winter weather such as ice storms. Data centers in this region are engineered to withstand these specific threats, incorporating hardened structures and resilient infrastructure designs to protect critical IT assets.

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