Data Centers in Oklahoma City
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Oklahoma City – Cost-Effective & Central Colocation
Oklahoma City provides a compelling colocation market for enterprises seeking a cost-effective, central U.S. presence. Its low power costs and significant tax incentives make it an ideal location for disaster recovery, secondary compute sites, and latency-sensitive applications serving the American heartland. This market offers a stable, low-risk environment for critical infrastructure.
Oklahoma City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, though not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Dallas; private network extensions provide reliable access. |
| Power Cost | US$0.058/kWh – as of May 2025 | Extremely competitive pricing, significantly below the U.S. national average. |
| Disaster Risk | Moderate (NRI Score: 43.30) – as of September 2025 | Main risks are weather-related, typical for the Great Plains region. |
| Tax Incentives | Yes – DC-specific | State-level sales and property tax exemptions are available for qualifying facilities. |
| Sales Tax | 4.50% – as of September 2025 | Oklahoma's state base rate; local taxes may also apply. |
Network & Connectivity Ecosystem
Oklahoma City is a strategic network location for reaching the south-central United States. While not a top-tier market like nearby Dallas, it has a capable and growing connectivity ecosystem suitable for production and secondary workloads.
Carrier Density & Carrier Neutrality The market is served by over 8 carriers as of September 2025, with several carrier-neutral facilities providing diverse connectivity options. This ensures competitive pricing and resilient network design opportunities.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Oklahoma City data centers, enabling access to 0 cloud regions locally as of September 2025. Businesses connect to hyperscale clouds via private network extensions, typically terminating in the major Dallas-Fort Worth market.
Internet Exchange Points (IXPs) The Oklahoma City Internet Exchange (OKCIX) facilitates local peering, improving performance and reducing costs for traffic that remains within the metropolitan area. Most national and international peering occurs through private connections or via IXPs in Dallas.
Bare Metal Bare metal server options are available, providing dedicated compute resources for performance-intensive applications. Providers like Hivelocity and phoenixNAP can serve customers requiring infrastructure in the region.
Power Analysis
Power in Oklahoma City is both affordable and reliable, representing one of the market's primary advantages for data center operators and tenants.
Average Cost Of Power The industrial power rate is approximately US$0.058/kWh as of May 2025. This extremely low cost provides a significant operational expense advantage compared to most other U.S. data center markets.
Power Grid Reliability The electrical grid supporting the area's data centers is well-engineered, drawing power from a diverse generation mix that includes natural gas, nuclear, and renewables. Key facilities are often supported by redundant substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
The business environment in Oklahoma City is highly favorable for data center investment, driven by strong local industries and attractive financial incentives.
Proximity To Key Business Districts Data centers in the region are situated to serve Oklahoma's core industries, including energy, aerospace, government, and logistics. This proximity provides low-latency connectivity for local enterprise and public sector operations.
Regional Market Reach From its central location, Oklahoma City can effectively serve end-users across Oklahoma, Kansas, Arkansas, Missouri, and North Texas. It is a strong choice for disaster recovery sites for businesses operating in Dallas, Houston, and other regional hubs.
Tax Advantage For Data Centers Oklahoma offers significant, data center-specific tax incentives that are among the best in the nation. Qualifying projects can receive exemptions from sales and property taxes on equipment, which substantially lowers the total cost of ownership for large-scale deployments.
Natural Disaster Risk
Oklahoma City has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.30 out of 100 as of September 2025. The primary risks are atmospheric and geological, characteristic of its location in the Great Plains.
Key environmental risks include tornadoes, strong winds, hail, and earthquakes. The region is also susceptible to drought, winter weather, and wildfire. Data center construction and operational planning in the area account for these factors to ensure facility resilience.
