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Data Centers in Dallas

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Dallas – Central US Hub For Low-Latency Connectivity

Dallas is a premier North American data center market, engineered for businesses requiring low-latency access to the entire continental United States. Its central location, dense fiber network, and competitive power market provide a strategic advantage for deploying resilient, high-performance infrastructure. This combination directly supports mission-critical applications where speed and uptime are essential for revenue and customer retention.

Dallas: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top-tier US market with extensive long-haul fiber and carrier density.
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/kWhDiverse energy mix, including significant renewables, helps stabilize industrial power costs.
Disaster RiskModerate (Score: 43.46)Main risks are weather-related; lacks the seismic and hurricane risks of coastal markets.
Tax IncentivesYesState sales and use tax exemptions are available for qualified data center projects.
Sales Tax6.25% (State Rate)Texas state sales tax rate, as of July 2025.

Network & Connectivity Ecosystem

Dallas stands as one of the most connected cities in the United States, serving as a primary intersection for data traffic moving coast-to-coast and to Latin America.

Carrier Density & Carrier Neutrality With over 75 unique network providers as of September 2025, the Dallas market offers exceptional choice. The high concentration of carrier-neutral facilities ensures competitive pricing and resilient interconnection options for colocation, bare metal, and cloud access.

Direct Cloud On-Ramps The market features over 11 dedicated cloud on-ramps providing direct, private access to 17 different cloud availability regions as of September 2025. Major providers with a physical presence include:

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

Internet Exchange Points (IXPs) Dallas is home to major internet exchanges, including DE-CIX Dallas and the Equinix IX Dallas. These IXPs are critical for enabling low-latency, cost-effective traffic exchange between networks, content providers, and enterprises throughout the South Central US.

Bare Metal Bare metal server providers are widely available in Dallas, offering dedicated compute for performance-sensitive workloads. Providers like Hivelocity and phoenixNAP operate within the region's top data centers.

Power Analysis

Dallas provides a favorable environment for power-intensive deployments, balancing cost-effectiveness with a reliable grid.

Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. The diverse Texas energy mix, with nearly 30% from renewables, helps mitigate price volatility. This competitive pricing structure delivers significant operational savings for large-scale deployments.

Power Grid Reliability The power grid serving major data center corridors is well-engineered with support from multiple substations. Major facilities are built with extensive redundancy, including N+1 or 2N UPS systems and generator backup, to provide continuous uptime.

Market Access, Business & Tax Climate

Dallas offers a pro-business climate with excellent access to regional and national markets.

Proximity To Key Business Districts Data centers are strategically located near key commercial hubs, including the Telecom Corridor in Richardson, the Legacy business park in Plano, and downtown Dallas. This proximity serves the dense concentration of Fortune 500 headquarters, financial services firms, and technology companies in the Dallas-Fort Worth metroplex.

Regional Market Reach Its central location makes Dallas a strategic hub for serving a population of over 40 million people within a few milliseconds of latency. It is an optimal location for disaster recovery and content delivery infrastructure aiming to reach both East and West Coast end-users efficiently.

Tax Advantage For Data Centers Texas offers a significant tax incentive program for data center operators and tenants. The state provides a 100% exemption from the state sales and use tax on equipment, software, and electricity purchased for qualified data center projects. This incentive substantially lowers the total cost of ownership for new deployments and major equipment refreshes.

Natural Disaster Risk

Dallas has a moderate risk profile for natural disasters, with a FEMA National Risk Index score of 43.46 out of 100 as of September 2025. The location avoids the primary threats of earthquakes and direct hurricane landfalls that affect other major US markets.

The primary environmental risks for the Dallas region are weather-related and include:

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