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Data Centers in Dallas

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Dallas – America’s Central Connectivity Hub

Dallas is a top-tier North American data center market, engineered for businesses that demand low-latency connectivity to both U.S. coasts and Mexico. Its dense interconnection ecosystem and competitive power market make it a primary hub for cloud, enterprise, and content delivery networks requiring high-performance infrastructure.

Dallas: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A premier North American hub with extensive long-haul fiber and carrier diversity.
Direct Cloud On-RampsOver 11 – as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, and Oracle Cloud are available.
Power Cost$0.07 – $0.09/kWhSits within a competitive, deregulated energy market with a diverse generation mix.
Disaster RiskModerate (Score: 43.46) – as of September 2025Very low overall national risk profile; main hazards are weather-related events.
Tax IncentivesYesState sales and use tax exemptions are available for qualified data centers.
Sales Tax6.25% (State Rate) – as of September 2025Does not include local or district taxes, which may increase the total rate.

Network & Connectivity Ecosystem

Dallas serves as one of the most important network crossroads in the United States, offering a mature and highly competitive environment for interconnection.

Carrier Density & Carrier Neutrality: With access to over 77 unique network providers as of September 2025, Dallas offers exceptional choice. The market is dominated by carrier-neutral facilities, ensuring competitive pricing and routing options for any deployment.

Direct Cloud On-Ramps: The Dallas market features over 11 dedicated cloud on-ramps providing direct, private access to 17 different cloud availability regions. Major public clouds with a dedicated presence include:

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

Internet Exchange Points (IXPs): The primary public peering point is the Equinix Dallas IX, which facilitates low-latency traffic exchange between hundreds of networks. This dense peering environment reduces reliance on transit providers and lowers operating costs.

Bare Metal: Bare metal server providers are widely available throughout the Dallas market. Hivelocity and Latitude.sh are two examples of providers offering dedicated server solutions in the region.

Power Analysis

Dallas provides a favorable power environment for large-scale data center operations, characterized by competitive pricing and a self-contained grid.

Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing, supported by a diverse energy portfolio of natural gas, wind, and nuclear, helps manage total cost of ownership for high-density deployments.

Power Grid Reliability: The Texas grid, managed by ERCOT, operates independently from the national Eastern and Western Interconnections. Data centers in the primary corridors, such as the Richardson Telecom Corridor, are supported by redundant substations and well-maintained transmission infrastructure designed for high availability.

Market Access, Business & Tax Climate

The Dallas-Fort Worth metroplex is a major economic engine with a business-friendly climate that supports technology infrastructure investment.

Proximity To Key Business Districts: Data centers are concentrated in strategic locations like Richardson (the Telecom Corridor), Plano, and the Dallas central business district. This proximity provides low-latency connections to a massive base of finance, healthcare, logistics, and technology firms.

Regional Market Reach: From Dallas, organizations can effectively serve a vast geographic area covering the central and southern United States, as well as key markets in Mexico. Its central location makes it an ideal disaster recovery site for businesses with primary operations on either coast.

Tax Advantage For Data Centers: Texas offers a significant state sales and use tax exemption on equipment, software, and electricity purchased for qualified data centers. This incentive directly reduces the capital and operational expenses associated with building and running large-scale computing facilities.

Natural Disaster Risk

Dallas has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 out of 100 as of September 2025. This "Very Low" national percentile ranking means the area is less susceptible to major disasters than most of the country.

The primary environmental risks are atmospheric and weather-related. Key hazards to consider include:

  • Hail
  • Heat Waves
  • Ice Storms & Winter Weather
  • Drought
  • High Winds (from severe thunderstorms or remnants of hurricanes)
  • Riverine Flooding
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