Data Centers in Red Oak

Red Oak – Strategic Dallas-Fort Worth Colocation

Executive Summary

Red Oak provides a compelling colocation alternative within the Dallas-Fort Worth metro, engineered for businesses that require robust, scalable infrastructure without the premium costs of a downtown Dallas address. This market is ideal for enterprises focused on low-latency access to the central United States and leveraging Texas's favorable tax climate. Choosing Red Oak supports reliable service delivery and a lower total cost of ownership.

Red Oak: At A Glance

Network & Connectivity Ecosystem

Red Oak's connectivity is defined by its strategic position within the greater Dallas-Fort Worth (DFW) network fabric. While local facilities offer focused carrier lists, they provide high-capacity pathways into one of the most connected markets in the United States.

• Carrier Density & Carrier Neutrality: The market benefits from its proximity to Dallas, a top-tier interconnection hub with access to hundreds of unique network providers. As of September 2025, facilities in Red Oak provide access to this dense ecosystem via dedicated fiber routes.

• Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Red Oak as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established through network extensions to carrier hotels in downtown Dallas.

• Internet Exchange Points (IXPs): Peering is primarily handled through the major exchanges in Dallas, including the Equinix Dallas IX and DE-CIX Dallas. This provides efficient traffic exchange and improves network performance across the southern United States.

• Bare Metal: Bare metal server solutions are readily available, typically provisioned from providers operating within the larger DFW metro area. Options from vendors like Hivelocity and Latitude.sh can serve Red Oak customers with minimal latency.

Power Analysis

• Average Cost Of Power: Industrial electricity rates in the Red Oak area typically range from $0.07 to $0.09 per kWh, as of September 2025. This competitive pricing, driven by a diverse energy mix of natural gas, wind, and other sources, provides a significant operational cost advantage for high-density deployments.

• Power Grid Reliability: The Texas power grid, managed by ERCOT, is independent of the national interconnects. Data centers in this region are built with high levels of redundancy, typically featuring multi-megawatt capacity and connections to multiple utility substations to ensure uptime.

Market Access, Business & Tax Climate

• Proximity To Key Business Districts: Red Oak is strategically located south of Dallas, offering excellent access to the city's central business district and major logistics and industrial corridors along Interstates 35E, 20, and 45. This position is ideal for disaster recovery and production workloads supporting the DFW economy.

• Regional Market Reach: From Red Oak, businesses can effectively serve a vast geographic area covering Texas and the central and southern United States. The location ensures low-latency connectivity for millions of end-users.

• Tax Advantage For Data Centers: Texas offers one of the most significant tax incentives in the country for data center operators and tenants. A state sales and use tax exemption on equipment, software, and power significantly reduces both the initial capital investment and ongoing operational expenses.

Natural Disaster Risk

Red Oak 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 the primary threats of earthquakes and direct hurricane impact common to other regions.

Key risks are primarily atmospheric and include:

• Hail
• Ice Storms & Winter Weather
• Tornadoes
• Heat Waves & Drought
• Lightning
• Riverine Flooding