Data Centers in College Station
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College Station – Cost-Effective Hub for Texas Resiliency
College Station provides a compelling alternative to the major Texas data center markets of Dallas, Houston, and Austin. It is an ideal location for organizations prioritizing disaster recovery, regional compute, and lower operational costs. The market’s strategic position offers a resilient footprint for workloads serving Central and Southeast Texas.
College Station: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but lacks direct carrier and cloud density of primary markets. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hubs are Houston and Austin; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Industrial power is priced competitively for the region, as of September 2025. |
| Disaster Risk | Moderate (43.46 Score) | Lower risk profile than coastal cities but exposed to specific weather events. |
| Tax Incentives | Yes | State sales and use tax exemption is available for qualified data centers. |
| Sales Tax | 6.25% (Texas) | State sales tax as of midyear 2025. |
Network & Connectivity Ecosystem
College Station is a secondary market with focused connectivity options suitable for disaster recovery and specific regional applications.
Carrier Density & Carrier Neutrality: The market features access to a select number of regional and national carriers, as of September 2025. While not as dense as Dallas or Houston, the available providers offer reliable network services for most business requirements.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within College Station data centers, as of September 2025. Secure, private connections to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure are established through network providers with points-of-presence in the nearest major hubs of Houston and Austin.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network peering is conducted privately or routed through the major exchange points in Dallas, Austin, or Houston to optimize traffic flow.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity can serve customers in the region, offering an alternative to virtualized infrastructure.
Power Analysis
Average Cost Of Power: Industrial electricity is estimated to cost between $0.07 and $0.09 per kWh, as of September 2025. This competitive pricing can result in significant operational savings compared to more expensive power markets. The Texas grid mix is dominated by natural gas (~50%) and includes a substantial and growing renewables portfolio of wind and solar (~30%).
Power Grid Reliability: The power grid, managed by ERCOT, is engineered to support critical business operations. Data centers in the area typically feature redundant power feeds from separate substations to ensure high levels of uptime and fault tolerance for mission-critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in College Station are strategically located to support the robust academic and research ecosystem of Texas A&M University and the RELLIS Campus. This proximity is ideal for high-performance computing, big data analytics, and institutional research workloads.
Regional Market Reach: The market effectively serves the Brazos Valley region. More importantly, it functions as an excellent disaster recovery site for businesses with primary operations in Houston (approximately 95 miles away) or Austin (approximately 110 miles away), placing it outside the primary risk zones of those cities.
Tax Advantage For Data Centers: Texas provides a significant financial incentive through a state sales and use tax exemption on equipment, software, and power purchased for qualified data center projects. This program directly reduces the capital and operational expenses of deploying and running IT infrastructure.
Natural Disaster Risk
College Station has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 out of 100, as of September 2025. Its inland location protects it from direct coastal flooding and the most severe hurricane impacts that affect cities like Houston.
The primary environmental risks for data center operations in this area include:
- Hail
- Heatwave
- Drought
- Lightning
- Riverine Flooding
- Strong winds from inland tropical storms or hurricanes
- Wildfire
