Why Data Center Users Choose Texas.

The Texas data center market historically attracts a steady amount of demand, but over the past several years, activity has exceeded expectations.

Dallas boasts some of the nation’s lowest power costs. Current market conditions allow for long-term energy contracts with all-in rates below $0.05 per kilowatt hour. Add in connectivity and a favorable economic climate, and it’s not surprising to see DFW as one of the fastest-growing markets in the country. The demand for data center space comes in a variety of sizes, from small businesses seeking single-cabinet leases to global companies needing large amounts of space. A recent trend in Dallas is the construction of powered shell facilities. This approach allows data center operators to accommodate demand in a timely manner, while preserving capital.

DFW’s data center market originated in and around Dallas’ central business district due to the rich telecommunications infrastructure put in place by the internet companies. This led to several buildings being retrofitted to accommodate data center users. Today, these buildings act as interconnection hubs for some of the largest consumers of data center space in the world. North Texas cities benefit from the growth by offering sites and buildings with expansion opportunities. In addition, most colocation providers in DFW are choosing to construct new facilities.

Although Fort Worth has not historically seen the same demand as Dallas, Facebook’s decision to deploy to deploy approximately 750,000 square feet of data center space in 2015 is certainly worth mentioning. Based on planned expansion, the campus is projected to be as large as 2.5 million square feet with a price tag of $1 billion.

With the low cost of energy, a strong economy, and impressive GDP growth, Texas is well positioned to win data center projects for years to come.