Data Centers in San Antonio

San Antonio – Resilient Connectivity in South Texas

San Antonio is an excellent market for organizations that require a resilient, lower-cost Texas footprint, particularly for disaster recovery or serving South Texas. Its inland location provides a strategic advantage for uptime-sensitive applications, positioning it as a stable alternative to other major Texas metros.

San Antonio: At A Glance

Network & Connectivity Ecosystem

San Antonio provides reliable connectivity, acting as a key hub for South Texas and a gateway to Mexico. While not as dense as Dallas, the market offers a solid foundation for most enterprise and service provider needs.

Carrier Density & Carrier Neutrality The San Antonio market features access to over 15 carriers as of September 2025. Multiple carrier-neutral facilities ensure competitive pricing and resilient network design options.

Direct Cloud On-Ramps The market has 1 direct cloud on-ramp, enabling dedicated, low-latency access to Microsoft Azure. This supports hybrid cloud architectures and improves the performance of applications connecting to 10 cloud regions.

Internet Exchange Points (IXPs) Most network peering in San Antonio is handled privately between carriers within local data centers. Access to public exchanges is typically achieved through network providers with connectivity to major IXPs in Dallas or Houston.

Bare Metal Bare metal compute is readily available from multiple providers. Options include infrastructure from global suppliers like Hivelocity and phoenixNAP, supporting workloads that require dedicated physical servers.

Power Analysis

Average Cost Of Power Industrial electricity rates in San Antonio are competitive for the region, generally ranging from $0.07 to $0.09/kWh as of September 2025. This pricing structure helps reduce the total cost of ownership for high-density deployments.

Power Grid Reliability The market is served by the independent Texas grid (ERCOT). Major data center corridors in San Antonio are supported by well-engineered infrastructure with access to redundant power feeds from multiple substations, ensuring high levels of availability.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in San Antonio offer low-latency connectivity to the city's large military, cybersecurity, healthcare, and financial services sectors. This proximity is critical for applications that require real-time data processing and delivery.

Regional Market Reach The city is an effective hub for serving the rapidly growing Austin-San Antonio corridor, all of South Texas, and as a primary gateway for network traffic to and from Mexico.

Tax Advantage For Data Centers Texas offers a significant sales and use tax exemption on the electricity, equipment, and software purchased for qualified data centers. This incentive directly reduces both the initial capital investment and long-term operational costs for operators and tenants.

Natural Disaster Risk

San Antonio has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 as of September 2025. The location avoids the direct impact of most coastal threats, making it a strong choice for disaster recovery sites.

The primary environmental risks for the area are heat wave, drought, hail, and riverine flooding. The region can also experience secondary effects from winter weather or distant hurricane events.