Data Centers in Montgomery
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Montgomery, Texas, USA – Edge Colocation North of Houston
Montgomery offers a strategic colocation point for businesses needing proximity to the northern Houston metropolitan area without the density of the primary market. It serves as an effective location for edge computing, disaster recovery, and localized service delivery. This market provides access to a major economic hub while benefiting from specific state-level tax advantages.
Montgomery, Texas, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, relies on Houston for major interconnection. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Houston; private network extensions are required for direct access. |
| Power Cost | $0.07 – $0.09/kWh | Industrial power is competitively priced within the Texas (ERCOT) grid. |
| Disaster Risk | Moderate (Score: 43.46) – as of September 2025 | Primary risks include hurricane winds, hail, and winter weather. |
| Tax Incentives | Yes | State sales and use tax exemptions are available for qualified data center projects. |
| Sales Tax | 6.25% (State) – as of Midyear 2025 | Data center equipment may qualify for a 100% exemption from this tax. |
Network & Connectivity Ecosystem
Montgomery is an edge market whose connectivity is defined by its proximity to Houston, a major national hub.
Carrier Density & Carrier Neutrality: The market contains 1 provider in a single facility as of September 2025. Connectivity relies on regional fiber networks connecting back to carrier hotels in Houston.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Montgomery. Organizations require private network links, such as PNI or wavelength services, to connect to cloud provider fabrics in Houston to access AWS, Google Cloud, and Microsoft Azure.
Internet Exchange Points (IXPs): No public IXPs are present in Montgomery. Peering is conducted privately or through exchanges in Houston and Dallas, which handle the bulk of regional traffic exchange.
Bare Metal: Bare metal server options are available, primarily through providers that can deploy equipment into the local facility or offer compute from nearby Houston data centers. Providers like Hivelocity can service the region.
Power Analysis
The Texas power grid, managed by ERCOT, is independent and offers competitive pricing, though it has faced reliability challenges under extreme weather conditions.
Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing can significantly reduce operational expenditures for high-density compute.
Power Grid Reliability: The grid supporting the greater Houston area is well-established for commercial and industrial use. Data centers in the region are engineered with significant on-site redundancy, including UPS and generator backups, to mitigate any utility disruptions.
Market Access, Business & Tax Climate
Montgomery's location provides a favorable business environment with access to a large metropolitan economy.
Proximity To Key Business Districts: The market is situated near The Woodlands, a major corporate and commercial hub, and provides low-latency access to the entire northern Houston area. This is ideal for supporting businesses in the energy, healthcare, and logistics sectors.
Regional Market Reach: A data center in Montgomery can effectively serve the Houston metropolitan area, the fourth-largest in the US. It also functions as a viable disaster recovery site for operations based in Dallas or Austin.
Tax Advantage For Data Centers: Texas provides a significant sales and use tax exemption for equipment, software, and power purchased for qualified data centers. This incentive directly lowers the capital and operational costs of deploying and maintaining critical IT infrastructure.
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. Although located inland, the area is exposed to weather events originating from the Gulf Coast and the Great Plains.
The primary risks for data center operations in this area include:
- Hurricane Winds: Strong winds from tropical systems can impact the region.
- Hail & Severe Storms: The area is susceptible to severe thunderstorms that produce large hail and lightning.
- Winter Weather: Ice storms and extreme cold can strain the power grid and affect logistics.
- Riverine Flooding: Proximity to water sources presents a manageable flood risk for well-sited facilities.
- Drought & Wildfire: Periods of drought can increase the risk of wildfires in the surrounding landscape.
