Data Centers in Texas

Texas – Massive Infrastructure Scale and Power Autonomy

Texas is the primary destination for enterprises requiring massive scale and sovereign power control. It serves as a critical bridge between national backbones and international gateways, ensuring high speed delivery and long term cost stability for high growth workloads. The region is effectively the central nervous system for North American data traffic.

Texas: At A Glance

Network & Connectivity Ecosystem

The infrastructure in Texas is purpose-built to handle massive throughput with minimal delay. This ecosystem supports the requirements of global finance, energy, and technology sectors.

Carrier Density & Carrier Neutrality: The market features over 80 unique carriers across roughly 225 data centers as of September 2025. This density ensures a competitive environment for blended IP and diverse transport requirements.

Direct Cloud On-Ramps: Over 14 direct on-ramps are available as of September 2025, enabling low latency access to 19 cloud regions. Verified providers include AWS, Microsoft Azure, Google Cloud (GCP), IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): Major exchanges such as DE-CIX Dallas and Netrality provide local peering. This keeps traffic within the region, reducing transit costs and improving performance for local users.

Bare Metal: High performance bare metal services are widely available through providers like Hivelocity and ColoCrossing as of September 2025. These offer an alternative to traditional virtualization for compute heavy applications.

Power Analysis

Texas offers a unique advantage through its independent power grid, providing local control not found in other states.

Average Cost Of Power: The industrial electricity rate is $0.09/kWh as of September 2025. The energy mix consists of approximately 50% natural gas, 25% wind, 12% coal, 9% nuclear, and 3% solar. This diverse portfolio helps manage price volatility while increasing the availability of renewable options.

Power Grid Reliability: Data center corridors in Texas utilize well-engineered, redundant systems with multi-substation support. This infrastructure is specifically intended to maintain continuous uptime for mission critical facilities.

Market Access, Business & Tax Climate

The business environment in Texas is built for expansion, offering a favorable regulatory climate and strategic access to global markets.

Proximity To Key Business Districts: Data centers are centrally located near major corporate headquarters in Dallas, Houston, and Austin. This proximity is vital for industries that require sub-millisecond connectivity to their primary operations.

Regional Market Reach: From a central Texas location, providers can serve the entire South-Central United States and Mexico with exceptional latency. It is the primary gateway for traffic moving between U.S. and Latin American markets.

Tax Advantage For Data Centers: Texas provides a financial benefit through state sales and use tax exemptions for qualified data center equipment and software. This helps operators and tenants reduce their total cost of ownership over the life of a project.

Natural Disaster Risk

The natural disaster risk in Texas is Moderate, with a score of 43.5 out of 100 as of September 2025. While the state is vast, major data center hubs are generally positioned to avoid the most severe environmental threats.

Primary Natural Hazards:

• Heat Wave
• Hurricane
• Hail
• Ice Storm
• Lightning
• Riverine Flooding
• Winter Weather

Infrastructure in the region is built to withstand high temperatures and includes specific reinforcements for wind and moisture protection in hurricane prone zones. Any risks related to coastal flooding are considered indirect or regional for inland metros like Dallas and Austin.