Data Centers in Dallas

Dallas – The Primary Interconnection Hub of the South

Executive Summary

Dallas is the critical junction for enterprises requiring low-latency access to the central United States and Latin American transit routes. This market provides the infrastructure density and carrier variety necessary to protect revenue and maintain high-speed application performance across the continent.

Dallas: At A Glance

Network & Connectivity Ecosystem

Dallas operates as a massive carrier-neutral ecosystem, providing the infrastructure for high-performance data distribution.

Carrier Density & Carrier Neutrality: The market supports 75–85 unique providers as of December 2025. This high density allows for aggressive cost management and diverse pathing for enterprise wide area networks.

Direct Cloud On-Ramps: Over 11 native on-ramps provide low-latency access to 17 cloud regions as of December 2025. Enterprises can establish direct, private links to AWS, Google Cloud (GCP), Microsoft Azure, Oracle Cloud, and IBM Cloud.

Internet Exchange Points (IXPs): DE-CIX Dallas and Equinix IX are the primary exchanges, facilitating localized peering that keeps traffic within the region to reduce latency.

Bare Metal: High-performance compute requirements are served with immediate availability of bare metal services from providers like Hivelocity and ColoCrossing as of December 2025.

Power Analysis

Energy infrastructure in the region is purpose-built for high-density requirements and long-term price stability.

Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.11/kWh as of December 2025. These competitive rates are a direct result of the Texas energy mix, where natural gas and wind provide the majority of the load. Affordable power remains a primary driver for large-scale deployments in this market.

Power Grid Reliability: Major data center corridors utilize well-engineered utility infrastructure with redundant substation feeds. The regional grid is built with multi-substation support to ensure high availability for mission-critical operations.

Market Access, Business & Tax Climate

Dallas provides immediate access to a massive cluster of corporate headquarters and telecommunications firms.

Proximity To Key Business Districts: Facilities are concentrated near the Downtown business district and northern suburbs like Plano and Richardson. This placement offers low latency for the many Fortune 500 firms located nearby.

Regional Market Reach: A deployment in Dallas serves the entire Texas Triangle and the mid-continental United States. It is a primary gateway for traffic moving between US markets and Mexico.

Tax Advantage For Data Centers: Texas provides a major financial benefit through the Sales and Use Tax Exemption. This incentive applies to electricity and equipment for qualified data center occupants, significantly reducing the total cost of ownership for long-term infrastructure as of December 2025.

Natural Disaster Risk

Dallas carries a Moderate risk profile with a FEMA NRI score of 43.46 as of December 2025. Facilities are inland and shielded from coastal threats, but local weather patterns require specific hardware hardening.

• Hail: High-frequency risk for physical facility structures.
• Heat Wave: Frequent heat waves require resilient cooling systems.
• Lightning: Common during convective storms, requiring sturdy grounding systems.
• Wildfire: Seasonal dry periods create a material risk for facilities near undeveloped land.
• Winter Weather: Occasional severe winter weather requires reliable backup power.

Environmental risks are manageable through standard facility hardening and redundant mechanical and electrical architectures as of December 2025.