Data Centers in Red Oak
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Red Oak – Scalable Infrastructure for High-Capacity Workloads
Strategic Expansion for Hyperscale Requirements
Red Oak serves as a vital suburban expansion point for the Dallas–Fort Worth metroplex, offering the massive power and space required for hyperscale deployments. This market provides a critical balance of proximity to a global interconnection hub while maintaining the lower cost profile necessary for power-intensive enterprise workloads.
Red Oak: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional backbone supported by proximity to Dallas. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest hub is Dallas; accessible via private transport. |
| Power Cost | $0.08/kWh, as of December 2025 | Competitive industrial rates with high renewable generation. |
| Disaster Risk | Moderate (43.46), as of December 2025 | Balanced profile with risks from regional weather events. |
| Tax Incentives | Yes | Sales and use tax exemption for data center equipment. |
| Sales Tax | Texas sales tax 6.25%, as of December 2025 | Standard state rate for equipment and services. |
Network & Connectivity Ecosystem
Red Oak operates as a low-latency extension of the Dallas carrier ecosystem, purpose-built to support massive data transfer with high reliability and physical diversity.
Carrier Density & Carrier Neutrality: Carrier count: over 10, as of December 2025. The market provides access to a range of 10–15 national and regional fiber providers that connect suburban campuses to major peering points in the urban core.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of December 2025. There are currently no direct physical on-ramps in Red Oak. Most deployments utilize high-capacity private waves or PNI to reach cloud gateways in Dallas, which serves as a global hub for AWS, Google Cloud (GCP), and Microsoft Azure.
Internet Exchange Points (IXPs): Primary peering occurs at major Dallas exchanges such as DE-CIX Dallas or the Equinix IX. These platforms facilitate efficient traffic exchange with hundreds of networks just milliseconds away.
Bare Metal: General availability is supported by providers such as Hivelocity and Latitude.sh, as of December 2025. These services allow for rapid deployment of physical hardware without the long-term commitment of traditional wholesale leases.
Power Analysis
Energy availability is a primary driver for site selection in Red Oak, benefiting from the deregulated Texas market and a diverse generation mix.
Average Cost Of Power: Industrial electricity is approximately $0.08/kWh, as of December 2025. This rate allows for significant operational savings compared to coastal markets, directly impacting the total cost of ownership for high-performance computing clusters.
Power Grid Reliability: The local grid features well-engineered infrastructure with multi-substation support. This redundancy is common in North Texas data center corridors to ensure continuous uptime during peak demand periods.
Market Access, Business & Tax Climate
The business environment in Red Oak is built to attract capital-intensive technology investments through favorable local and state policies.
Proximity To Key Business Districts: Data centers are located near the southern edge of the Dallas–Fort Worth metroplex. This proximity provides easy access to the region’s massive corporate base and tech talent pool without the congestion of urban centers.
Regional Market Reach: This location effectively serves the Central and Southern United States. Its geographical position is ideal for organizations requiring a mid-continent hub that balances latency between the East and West coasts.
Tax Advantage For Data Centers: Texas provides a significant financial benefit through state sales and use tax exemptions for qualified data center equipment and software. This incentive drastically reduces the upfront and ongoing costs of maintaining hardware at scale.
Natural Disaster Risk
Red Oak maintains a Moderate risk profile with a FEMA NRI score of 43.46, as of December 2025. The assessment reflects the regional climate of North Texas, focusing on atmospheric threats rather than geological ones.
- Heat Waves: High temperature events are a seasonal factor requiring efficient cooling architectures.
- Ice Storms: Winter weather can impact local infrastructure, though sites are built for these extremes.
- Hail and Lightning: Frequent storm activity is managed through hardened roofing and lightning protection systems.
- Drought: Long-term water availability is a regional consideration for water-cooled facilities.
- River Flooding: Risk is localized and generally managed through site selection in elevated areas.
- Wildfire: Regional risks exist during dry seasons, requiring clear defensible space around facilities.
