Data Centers in Austin

Austin – The Silicon Hills Tech & Resilience Hub

Austin is a premier U.S. market for businesses requiring a resilient, high-growth environment with strong connectivity to central and southern states. Its combination of a dense carrier ecosystem, favorable tax policies, and a moderate risk profile makes it a strategic location for deploying primary infrastructure and disaster recovery sites that demand high uptime and performance.

Austin: At A Glance

Network & Connectivity Ecosystem

Austin provides a rich and competitive connectivity landscape, ideal for latency-sensitive applications serving the central United States.

Carrier Density & Carrier Neutrality: The market features excellent carrier density, with over 25 unique network providers operating in the metro area as of September 2025. Numerous carrier-neutral facilities ensure competitive pricing and high-quality interconnection options.

Direct Cloud On-Ramps: As of September 2025, there are no public cloud on-ramps located directly within Austin. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated private network connections to the primary Texas hub in Dallas.

Internet Exchange Points (IXPs): Public peering is limited within Austin itself. Most high-volume traffic exchange occurs through private network interconnects (PNIs) or via the multiple major IXPs located in nearby Dallas.

Bare Metal: Bare metal server options are widely available from multiple providers in Austin. Deployments are available from global suppliers like Hivelocity and phoenixNAP, offering direct access to the region's network fabric.

Power Analysis

Austin’s power infrastructure is well-suited for high-density computing, supported by a diverse and increasingly renewable energy grid.

Average Cost Of Power: Industrial electricity rates are estimated to be between $0.07 and $0.09 per kWh as of September 2025. These competitive costs help lower the total cost of ownership for large-scale deployments. The grid benefits from a diverse mix of natural gas, wind, coal, and nuclear generation.

Power Grid Reliability: The power grid serving Austin's primary data center corridors is well-engineered, with support from multiple substations. The state's energy market, managed by ERCOT, provides a reliable power supply for critical facilities.

Market Access, Business & Tax Climate

Austin's strategic location and business-friendly environment provide significant advantages for technology-focused organizations.

Proximity To Key Business Districts: Data centers in Austin are located near the city's thriving technology sector, often called Silicon Hills, as well as the central business district and University of Texas research hubs. This proximity facilitates low-latency connections for financial, academic, and tech-driven enterprises.

Regional Market Reach: From Austin, organizations can effectively serve the entire state of Texas, a population of over 30 million people. It also acts as a strategic hub for reaching markets across the central and southern United States and into Mexico.

Tax Advantage For Data Centers: Texas offers a compelling tax incentive program for data center operators and tenants. Qualified projects receive a 100% exemption from the state's sales and use tax on equipment, software, and power, which substantially reduces both initial capital outlay and ongoing operational expenses.

Natural Disaster Risk

Austin has a moderate natural disaster risk profile, with no single overwhelming threat.

Based on the FEMA National Risk Index, Austin scores 43.46 out of 100, placing it in the "Moderate" risk category as of September 2025. This score reflects a balanced risk landscape where planning for multiple hazards is more effective than focusing on one. Key risks for consideration include drought, severe hail, heatwaves, river flooding, and strong winds from inland storms.