Data Centers in Midland
1 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Texas
Midland, Texas, United States – Edge Computing for the Energy Sector
Executive Summary
Midland, Texas, provides a strategic location for edge computing, particularly for companies in the energy and logistics sectors operating in the Permian Basin. This market is built for organizations that require low-latency processing close to industrial operations, ensuring uptime and data sovereignty for critical applications far from major data center hubs. Placing infrastructure here minimizes network dependency on distant metros, directly supporting operational efficiency and revenue.
Midland, Texas, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with primary interconnection through major Texas hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Dallas; access via private network extension is common. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Industrial rates are competitive, leveraging a diverse state energy portfolio. |
| Disaster Risk | Moderate (43.46) – as of September 2025 | Risks are primarily weather-related; avoids coastal and major seismic threats. |
| Tax Incentives | Yes | State sales and use tax exemptions are available for qualifying data center equipment. |
| Sales Tax | 6.25% (State Rate) – as of Midyear 2025 | Local taxes may apply in addition to the state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Connectivity in Midland is supplied by at least one fiber provider, as of September 2025. The market relies on regional and national carriers to connect back to primary interconnection hubs like Dallas.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Midland. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through network extensions to facilities in Dallas or Austin. This is typically achieved using private network interconnects or wavelength services from local carriers.
Internet Exchange Points (IXPs): Public peering is not available in Midland. Most network peering occurs privately or is routed through major exchange points in Dallas, such as the DE-CIX Dallas or Equinix IX.
Bare Metal: Bare metal server options are available from providers that can service edge locations. Companies like Hivelocity can deploy infrastructure to regional data centers to meet local processing needs.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between $0.07 and $0.09 per kWh, as of September 2025. Texas's competitive power market and diverse energy mix, which includes approximately 50% natural gas and 30% renewables, help stabilize costs for high-consumption operations.
Power Grid Reliability: The Texas grid is managed by ERCOT and operates independently. The energy infrastructure serving West Texas is built to support the demanding needs of the oil and gas industry, providing a generally reliable power foundation for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Midland are strategically positioned to serve the Permian Basin, the most prolific oil-producing region in the United States. This proximity provides low-latency connectivity for industrial IoT, remote monitoring, and operational data processing for energy companies.
Regional Market Reach: Midland serves as a digital infrastructure anchor for West Texas and southeastern New Mexico. It enables effective service delivery to a vast but sparsely populated area, reducing reliance on data centers located hundreds of miles away in Dallas or Austin.
Tax Advantage For Data Centers: Texas offers significant tax incentives that lower the cost of building and equipping a data center. A state sales and use tax exemption on hardware, software, and power infrastructure creates substantial capital savings, making investments more financially attractive.
Natural Disaster Risk
Midland has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 out of 100, as of September 2025. The location avoids significant hurricane, flood, and earthquake threats common in other regions. Primary environmental risks are weather-related and include drought, hail, heatwaves, wildfires, and winter storms.
