Data Centers in Houston

Houston – Gulf Coast Interconnection Hub

Houston is a primary data center market for industries like energy, logistics, and healthcare that require low-latency connectivity to the Gulf Coast and Latin America. Its combination of dense interconnection, favorable tax incentives, and a resilient power grid directly supports mission-critical applications where uptime and cost-efficiency are paramount.

Houston: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Houston supports a healthy and competitive network ecosystem with approximately 40 unique network providers available as of September 2025. The market has numerous carrier-neutral facilities, ensuring choice and cost control for interconnection.

Direct Cloud On-Ramps Over 2 dedicated cloud on-ramps are present, providing access to at least 2 major cloud availability regions as of September 2025. Direct, low-latency connections are available to AWS, with private connections to other major cloud providers accessible via network partners.

Internet Exchange Points (IXPs) The primary public peering point is IX-Houston, which facilitates efficient local traffic exchange, though significant private peering also occurs within carrier-neutral facilities.

Bare Metal Bare metal server options are widely available from providers such as Hivelocity and phoenixNAP for compute-intensive workloads.

Power Analysis

Average Cost Of Power The average cost for industrial power in the Houston area is estimated between $0.07 and $0.09/kWh as of September 2025. This competitive pricing significantly lowers the total cost of ownership for high-density deployments. The Texas energy mix includes approximately 62% from fossil fuels and 30% from renewables.

Power Grid Reliability The Houston data center market is served by a well-engineered grid with support from multiple substations, providing the redundancy required for high-uptime operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Houston are strategically located to serve the city's core industries, including the Energy Corridor, the Texas Medical Center, and the Port of Houston, enabling low-latency processing for critical operations.

Regional Market Reach Houston provides effective, low-latency coverage for the entire Gulf Coast region, from Florida to Mexico, and serves as a critical network gateway to Central and South America.

Tax Advantage For Data Centers Texas offers a significant sales and use tax exemption on equipment, software, and power purchased for qualified data centers. This incentive directly reduces both the initial capital investment and ongoing operational expenses for tenants.

Natural Disaster Risk

Houston has a Moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 as of September 2025. The primary environmental threats are driven by its Gulf Coast location and climate. Key risks for consideration include Hurricanes, Riverine Flooding, Hail, severe Heat Waves, and Winter Weather events.