Data Centers in Montgomery
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Montgomery, Texas – Strategic Access to Texas Markets
Montgomery serves as a cost-effective colocation point for accessing the broader Houston and Texas triangle markets. This location is ideal for businesses needing a presence with favorable tax conditions and moderate disaster risk, without requiring direct, in-market cloud on-ramps. It provides a solid foundation for hybrid infrastructure and disaster recovery strategies.
Montgomery, Texas: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity; not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Closest on-ramps are in Houston. Private network extensions are available. |
| Power Cost | ~$0.08/kWh – as of September 2025 | Sourced from a natural gas-heavy grid with significant renewable contributions. |
| Disaster Risk | Moderate (43.46) – as of September 2025 | Primary risks include severe storms, hail, and high winds. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for qualified data centers. |
| Sales Tax | 6.25% (State) – as of September 2025 | Texas state sales tax; local taxes may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Montgomery market provides access to a solid base of regional and national carriers, with over 10 providers available as of September 2025. Carrier-neutral facilities ensure competitive network pricing and resiliency.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Montgomery as of September 2025. Businesses connect to cloud providers via private network links to major hubs like Houston, which offers dedicated access to all major clouds.
Internet Exchange Points (IXPs): Peering is primarily conducted through private connections or via IXPs in nearby Houston. This setup provides reliable, low-latency access to regional networks and content delivery networks.
Bare Metal: Bare metal server options are available in the broader Houston area, offering dedicated compute for performance-sensitive workloads. Providers like Hivelocity and Latitude.sh can service the region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Montgomery area average around $0.08/kWh as of September 2025. This competitive pricing, driven by a diverse energy mix, helps manage operational expenditures for high-density deployments.
Power Grid Reliability: The Texas power grid, managed by ERCOT, serves the region. Data centers in this area are typically supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Montgomery's data centers offer strategic proximity to the energy, manufacturing, and logistics industries of the greater Houston metropolitan area. This allows for low-latency connections supporting critical business applications.
Regional Market Reach: From Montgomery, organizations can effectively serve the entire Texas Triangle, a megaregion encompassing Houston, Dallas-Fort Worth, and San Antonio. This reach covers millions of end-users and business customers.
Tax Advantage For Data Centers: Texas provides significant tax incentives for data center operators and tenants. A state sales and use tax exemption on equipment, software, and power significantly lowers the total cost of ownership.
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. While the overall risk is not severe, facility design and operational planning must account for specific regional threats.
The primary risks for data center operations include severe weather events such as hurricanes (strong winds and inland flooding), hail, winter weather, and tornadoes. Other notable risks are drought, heatwaves, and wildfires.
