Data Centers in San Antonio

San Antonio – A Low-Risk Texas Data Hub

Executive Summary

San Antonio is a prime market for businesses seeking a resilient and cost-effective Texas footprint. Its moderate natural disaster risk profile and significant state tax incentives make it an excellent choice for production workloads and disaster recovery sites, directly improving operational stability and lowering total cost of ownership.

San Antonio: At A Glance

Network & Connectivity Ecosystem

San Antonio provides a solid foundation for digital infrastructure, offering a good mix of regional and national connectivity options. The ecosystem is well-suited for enterprises needing reliable access to Central Texas and cross-border networks.

Carrier Density & Carrier Neutrality: Over 15 carriers operate in the San Antonio market, as of September 2025. This ensures healthy competition and provides diverse, resilient network options within carrier-neutral colocation facilities.

Direct Cloud On-Ramps: The market provides over 1 on-ramp, as of September 2025, enabling low-latency connections to 10 cloud regions. Direct network access is available for Microsoft Azure. Other major cloud providers are accessible via private network extensions to the primary Texas hubs in Dallas and Austin.

Internet Exchange Points (IXPs): While public peering is limited within San Antonio itself, most interconnection occurs through private peering or via the major Internet Exchanges in Dallas. This common setup provides efficient traffic exchange across the region.

Bare Metal: Bare metal server options are readily available from providers in the area. These dedicated server solutions are ideal for workloads that require maximum performance and security, with providers like Hivelocity offering local deployments.

Power Analysis

Average Cost Of Power: Industrial power rates in San Antonio typically range from $0.07 - $0.09/kWh, as of September 2025. This competitive pricing helps manage the high power consumption typical of dense compute environments, offering a clear financial advantage over more expensive markets.

Power Grid Reliability: The regional power grid is well-supported, with data center operators typically leveraging redundant connections from multiple substations. The energy mix is diverse, with significant contributions from natural gas and wind power, supporting stable operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in San Antonio provide low-latency connectivity to the city's significant military installations, a growing cybersecurity sector, and major healthcare systems. This proximity is critical for applications that demand real-time data processing.

Regional Market Reach: The market is strategically positioned to serve South and Central Texas, including the Austin-San Antonio corridor. It also acts as a key connectivity gateway to markets in Mexico.

Tax Advantage For Data Centers: Texas provides a significant tax advantage through a state sales and use tax exemption on equipment for qualifying data centers. This incentive directly reduces the capital expenditure required for new builds or major hardware refreshes.

Natural Disaster Risk

San Antonio has a Moderate natural disaster risk profile, with a National Risk Index score of 43.46, as of September 2025. This makes it one of the lower-risk locations within Texas for critical infrastructure.

The primary environmental threats are severe thunderstorms bringing hail and lightning, along with risks from drought, heat waves, and potential riverine flooding. While inland, the area can also experience residual effects from hurricanes, primarily in the form of heavy rain and strong winds. The region has very low seismic risk.