Data Centers in Montgomery
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Montgomery, Texas – Strategic Access to the Houston Metro
Executive Summary
Montgomery, Texas provides a cost-effective colocation option for businesses targeting the Greater Houston metropolitan area. It offers access to a major energy and logistics hub while situated in a location with a moderate disaster risk profile. This market is ideal for workloads requiring proximity to Houston's connectivity ecosystem without the premium costs of a city-center deployment.
Montgomery, Texas: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good connectivity, primarily leveraged through the nearby Houston market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest cloud access hub is Houston, offering private extension options. |
| Power Cost | $0.07 – $0.09/kWh | Industrial electricity with a mix of natural gas, wind, and coal. |
| Disaster Risk | Moderate (43.46) – as of September 2025 | Primary risks include hurricane winds, flooding, and hail. |
| Tax Incentives | Yes | State sales and use tax exemptions are available for qualified data centers. |
| Sales Tax | 6.25% (Texas State Rate) – as of September 2025 | Local taxes may also apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has access to a solid carrier base, with connectivity options primarily routed through the dense Houston ecosystem, as of September 2025. Facilities offer access to regional and national providers.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Montgomery as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via dedicated connections to carrier hotels and on-ramp locations in nearby Houston.
Internet Exchange Points (IXPs) Public peering is not available directly within Montgomery. The primary IXPs for the region, such as the Houston IX, are accessible through network provider connections, facilitating efficient traffic exchange.
Bare Metal Bare metal server options are available, offering dedicated compute for performance-sensitive applications. Providers like Hivelocity and Latitude.sh can service the region from their Texas data centers.
Power Analysis
Average Cost Of Power Industrial power rates in the Montgomery area range from approximately $0.07 to $0.09/kWh, as of September 2025. These competitive energy prices can significantly lower operational expenditures for compute-heavy deployments. The Texas grid is heavily supplied by natural gas (~50%), with a substantial and growing renewables component from wind power (~25%).
Power Grid Reliability The power grid, managed by ERCOT, is engineered to support industrial loads. Data centers in the region are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Montgomery's strategic location provides direct access to the significant business and industrial centers of Greater Houston, including the Energy Corridor. This proximity is valuable for companies in the oil and gas, manufacturing, and logistics sectors.
Regional Market Reach From Montgomery, organizations can effectively serve the entire Southeast Texas region, reaching a population of over 7 million people. It acts as an excellent secondary or disaster recovery site for primary deployments in Houston or Dallas.
Tax Advantage For Data Centers Texas offers significant financial incentives for data center operators and tenants. A state sales and use tax exemption on equipment, software, and electricity is available for qualifying data center projects, which reduces both initial capital investment and ongoing operational costs.
Natural Disaster Risk
Montgomery 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 most significant environmental threats are related to severe weather events. Key risks include hurricanes (primarily wind and related storm effects), riverine flooding, hail, drought, and heat waves.
