Data Centers in Midland

Midland – Mission Critical Infrastructure for the Permian Basin

Executive Summary

Midland serves as the essential digital backbone for the high-stakes West Texas energy sector. This market provides the specific low-latency compute required to manage field operations where uptime directly translates to revenue security.

Midland: At A Glance

Network & Connectivity Ecosystem

Midland operates as a specialized edge hub for the industrial sector. While it lacks the density of major coastal metros, it delivers the resilient connectivity required for remote operations.

Carrier Density & Carrier Neutrality: Carrier count: over 1. As of September 2025, the provider landscape focuses on reliable fiber paths connecting local sites to national backbones. These networks are purpose-built for the low-latency requirements of the energy industry.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. There are no direct on-ramps in this market; most enterprises utilize private transport or high-speed waves to Dallas for access to AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs): Public exchange points are limited in this market. As of September 2025, most peering occurs via private interconnects or through regional backhaul to national exchange points in Dallas.

Bare Metal: High-performance compute is available through specialized providers like Hivelocity as of September 2025. This allows for rapid deployment of heavy workloads without the long-term commitment of traditional colocation.

Power Analysis

Average Cost Of Power: Industrial electricity in Midland typically ranges between $0.07–$0.09/kWh, as of September 2025. This pricing lowers operational costs for high-density compute clusters compared to national averages. The energy mix consists of approximately 50% natural gas and 25% wind, providing a balance of traditional and renewable sources.

Power Grid Reliability: The local grid is purpose-built for the high-demand energy sector. It utilizes well-engineered transmission lines and multi-substation support to ensure consistent delivery to industrial corridors as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Midland are strategically located for the energy and logistics sectors. Close proximity to Permian Basin headquarters allows for real-time monitoring of field assets and rapid response to operational data as of September 2025.

Regional Market Reach: Midland is the primary technology anchor for West Texas and Eastern New Mexico. It serves as a gateway for organizations needing to project digital services across this resource-rich geography as of September 2025.

Tax Advantage For Data Centers: Texas offers a sales and use tax exemption for qualified data center equipment and electricity. This incentive provides a direct financial advantage by reducing upfront capital expenditure on server hardware as of September 2025.

Natural Disaster Risk

Midland maintains a Moderate risk rating with a FEMA score of 43.46 as of September 2025. The environment is stable, though specific weather patterns require specialized facility engineering.

• Heat Wave: High temperatures require efficient cooling systems for continuous operation.
• Ice Storm: Winter events can impact local logistics and require onsite power backup.
• Hail: Physical structures are built with hardened roofing to manage frequent storm events.
• Wildfire: Managed vegetation and buffer zones protect infrastructure in arid areas.
• Drought: Long-term water scarcity influences the choice of cooling technologies.
• Hurricane: Risk is considered indirect and regional due to the distance from the coast as of September 2025.

Other hazards such as lightning and river flooding are considered minor as of September 2025.