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Data Centers in Dallas

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Dallas – America's Central Interconnection Hub

Dallas is one of the most important data center markets in North America, acting as a primary interconnection point for the central United States. Its strategic location offers exceptionally low latency to both coasts, the Midwest, and Mexico, making it an ideal hub for national content delivery, disaster recovery, and cloud access. For businesses requiring broad, reliable reach across the continent, Dallas delivers a top-tier blend of connectivity, power, and operational stability.

Dallas: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A premier US fiber crossroads with exceptional carrier density.
Direct Cloud On-RampsOver 11 – as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, Oracle Cloud.
Power Cost$0.07 – $0.09/kWh (est.)Competitive pricing supports high-density compute and AI workloads.
Disaster RiskModerate (43.46) – as of September 2025Primary risks are weather-related; lacks significant seismic activity.
Tax IncentivesYesDC-specific sales and use tax exemptions are available for qualified data centers.
Sales Tax6.25% (Texas) – as of July 2025State-level sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Dallas has grown into one of the world's most connected cities, rivaling traditional hubs like Ashburn and Silicon Valley for network density. The market is built on a massive foundation of long-haul fiber that converges here from all directions.

Carrier Density & Carrier Neutrality With over 75 unique network providers active in the market as of September 2025, Dallas offers extensive choice. This competition ensures competitive pricing and diverse routing options, which are critical for building resilient network architectures. The market is dominated by carrier-neutral facilities, giving customers direct access to this rich ecosystem.

Direct Cloud On-Ramps The Dallas market provides over 11 dedicated cloud on-ramps connecting to 17 different cloud regions as of September 2025. This allows for secure, low-latency private access directly to major hyperscale platforms, including:

  • AWS
  • Azure
  • Google Cloud (GCP)
  • IBM Cloud
  • Oracle Cloud

Internet Exchange Points (IXPs) Home to one of the largest DE-CIX exchanges in North America, Dallas is a major center for network peering. The presence of major IXPs like DE-CIX Dallas and the Equinix IX allows networks to exchange traffic directly, reducing latency and transit costs for content and application delivery.

Bare Metal Bare metal server providers are widely available throughout the Dallas market. Companies like Hivelocity and phoenixNAP offer dedicated server solutions that leverage the region's excellent connectivity and power infrastructure.

Power Analysis

Dallas provides a favorable environment for power-intensive operations, combining competitive costs with a reliable grid designed to support critical infrastructure.

Average Cost Of Power Industrial electricity costs are estimated to be between $0.07 and $0.09/kWh as of September 2025. This competitive pricing makes Dallas an attractive location for deploying high-density compute clusters for AI, analytics, and other demanding workloads.

Power Grid Reliability The power grid serving the primary data center corridors in Dallas is well-engineered for high availability. Major data center clusters are supported by multiple substations and redundant power feeds, providing the resilience required to maintain uptime for mission-critical applications.

Market Access, Business & Tax Climate

Dallas serves as a major economic engine with a business-friendly climate that actively supports digital infrastructure investment.

Proximity To Key Business Districts Data centers are strategically located near key commercial centers, including the Telecom Corridor in Richardson and the Dallas-Fort Worth metroplex's central business districts. This proximity serves a high concentration of Fortune 500 headquarters, financial services firms, and logistics companies.

Regional Market Reach From Dallas, organizations can effectively serve a massive geographic area. Its central location provides sub-20 millisecond latency to major population centers like Houston, Austin, Kansas City, and Atlanta, covering tens of millions of end-users.

Tax Advantage For Data Centers Texas offers significant tax benefits that lower the cost of data center investment and operation. A state-level sales and use tax exemption on equipment, software, and power is available for qualified data centers, directly reducing capital expenditures.

Natural Disaster Risk

Dallas has a moderate natural disaster risk profile, with a national risk score of 43.46 out of 100 as of September 2025. The area is not prone to major seismic events, hurricanes, or wildfires common in other markets.

The primary environmental threats are severe weather events, including:

  • Hail
  • Ice Storms & Winter Weather
  • Heat Waves
  • Drought
  • Lightning
  • Riverine Flooding
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