Data Centers in San Antonio

San Antonio – Resilient Texas Interconnection Hub

San Antonio is a strong choice for businesses requiring a resilient, centrally-located hub to serve Texas and the broader south-central United States. The market provides excellent connectivity and favorable operating costs, making it ideal for disaster recovery, secondary compute locations, and latency-sensitive applications targeting the region.

San Antonio: At A Glance

Network & Connectivity Ecosystem

San Antonio's network ecosystem is well-developed, offering reliable, low-latency connectivity for enterprise and service provider needs. It serves as a key alternative and disaster recovery site to other major Texas markets.

Carrier Density & Carrier Neutrality: The market features over 15 network providers, as of September 2025. This density ensures competitive pricing and diverse routing options, with multiple carrier-neutral facilities offering interconnection.

Direct Cloud On-Ramps: San Antonio provides over 1 direct cloud on-ramp, enabling dedicated access to 10 cloud regions, as of September 2025. Local on-ramps include Microsoft Azure. Access to other major clouds like AWS and Google Cloud is available via private network extensions from nearby hubs like Austin or Dallas.

Internet Exchange Points (IXPs): While public peering is limited within the city, most interconnection occurs through private peering inside carrier-neutral data centers. The proximity to Austin and Dallas provides low-latency access to major regional IXPs for broader peering needs.

Bare Metal: Bare metal server capacity is readily available from multiple providers. Options from vendors like Hivelocity offer on-demand compute for workloads requiring dedicated physical hardware.

Power Analysis

Average Cost Of Power: Industrial electricity rates in San Antonio are estimated between $0.07–$0.09/kWh, as of September 2025. These competitive power costs, combined with a diverse energy mix heavy on natural gas and wind, contribute to a predictable operating expense profile.

Power Grid Reliability: The power grid serving San Antonio's main data center zones is well-engineered, with support from multiple substations. The Texas grid (ERCOT) is independent, which presents unique reliability considerations, but infrastructure within the city's commercial zones is built for high uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in San Antonio are strategically located to serve the city's significant military, healthcare, financial services, and oil and gas sectors. This proximity enables low-latency performance for critical local business operations.

Regional Market Reach: San Antonio is an effective hub for reaching customers throughout Texas, including Austin, Houston, and the Rio Grande Valley. Its location also provides a strategic gateway for connectivity into Mexico.

Tax Advantage For Data Centers: Texas provides significant tax benefits that lower the cost of data center operations. The primary incentive is a state sales and use tax exemption on equipment, software, and power purchased for qualified data center projects.

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. Its inland location shields it from the most severe hurricane and coastal flooding threats that affect other Texas markets.

Key risks for the area include drought, hail, heatwave events, and riverine flooding. The risk from winter weather and ice storms is also a factor, though less frequent than in northern climates. Overall, the risk profile is favorable for critical infrastructure placement.