Data Centers in Houston

Houston – Powering Global Energy and Enterprise Connectivity

Executive Summary

Houston is the undisputed heavyweight for energy sector IT and Fortune 500 operations. This market offers the high-speed pathways and high-uptime environments necessary to protect massive revenue streams and secure global supply chains.

Houston: At A Glance

Network & Connectivity Ecosystem

Houston provides a dense interconnection environment with a variety of service providers and low-latency pathways to major domestic markets.

Carrier Density & Carrier Neutrality: Carrier count: over 40. The market features ~40 to 45 unique carriers as of December 2025, providing diverse path options for redundant networking.

Direct Cloud On-Ramps: Over 2, enabling access to 2 cloud regions. This includes direct connectivity to AWS as of December 2025, facilitating rapid synchronization between on-premises hardware and cloud resources.

Internet Exchange Points (IXPs): Peering is primarily handled through the Houston Internet Exchange (HOUIX). This exchange reduces latency by keeping local traffic within the metropolitan area as of December 2025.

Bare Metal: Dedicated hardware options are widely available through global providers such as Hivelocity and Latitude.sh as of December 2025.

Power Analysis

Power availability and pricing in Houston remain attractive for large-scale data center operators due to the deregulated Texas energy market.

Average Cost Of Power: $0.10/kWh, as of December 2025. This rate allows for cost-predictability and lower operational expenses compared to coastal tech hubs. The energy mix consists of approximately 50% natural gas and 25% wind, providing a stable and increasingly renewable supply as of December 2025.

Power Grid Reliability: Data center corridors in Houston utilize well-engineered grids with multi-substation support. Redundant transmission lines help maintain steady operations during periods of peak demand as of December 2025.

Market Access, Business & Tax Climate

The business environment in Houston is optimized for large-scale industrial and technological investments.

Proximity To Key Business Districts: Facilities are strategically located near the Energy Corridor and Downtown Houston. This proximity allows for high-speed data exchange with global leaders in energy, healthcare, and aerospace as of December 2025.

Regional Market Reach: Houston acts as a primary gateway for the Gulf Coast and provides a reliable jumping-off point for traffic moving between the United States and Latin America as of December 2025.

Tax Advantage For Data Centers: Texas offers significant sales and use tax exemptions on electricity and equipment for qualified data centers. These incentives substantially reduce the capital required for hardware refreshes and long-term facility maintenance as of December 2025.

Natural Disaster Risk

The environmental risk profile for Houston is Moderate, with a score of 43.46 as of December 2025. While the region is inland, it faces specific climate-related hazards that require sturdy facility engineering.

Risk Summary: Moderate (43.46) as of December 2025.

Primary Hazards: Hurricanes, Heat Waves, Riverine Flooding, Lightning, and Ice Storms are the most frequent natural risks as of December 2025.

Resilience Strategy: Most facilities are built above the 500-year floodplain and utilize reinforced structures to manage high-wind events and heavy precipitation. Other hazards, such as wildfires and winter weather, are minor factors in the local risk rubric as of December 2025.