Dallas-Fort Worth has become the second largest data center market in the country, behind only Northern Virginia, and is showing no signs of slowing down. With development at an all-time high, DFW currently has over 13.5 million square feet of data center space.
Including new projects, data center space grew by more than 25 percent last year. This use of this space is mostly split between consumer needs and growth from big businesses, like Facebook, Toyota, Caterpillar and IBM, to name a few.
Location, Location, Location
It’s easy to see why Dallas-Fort Worth is the perfect location for a hot data center market. DFW is a central U.S. metroplex, with two large airports. This means there are more flights in and out daily, and its relatively easy to travel to or from anywhere in the country. The metroplex also has a low instance of natural disasters, as hurricanes will calm before they reach North Texas and there’s no risk of California earthquakes extending into Texas.
DFW is also home to a favorable business environment that claims 100,000 businesses and an economy that grew 5.7 percent last year. The prosperous economy has led to a large population growth in recent years, which provides a skilled workforce from which to hire. The State of Texas also passed legislation in 2013 that provides tax breaks for large colocation and enterprise users.
One of the most favorable benefits to being a data center located in DFW is the reasonable power cost. Compared to other popular data center markets, electricity is inexpensive. Much of the state’s electric capacity is managed by ERCOT (Electric Reliability Council of Texas), which provides reliable and robust power availability. Low power costs and market conditions often allow for long term energy contacts, which are critical to data center providers because of their high energy use around the clock for cooling equipment and maintaining connectivity.
How does this affect Dallas-Fort Worth?
Being one of the hottest data center markets in the country has big benefits for DFW. Data center providers can help local small to mid-size businesses reach beyond North Texas, by allowing for expansion of cloud services on a smaller scale. Data centers boost the local economy, create jobs by hiring skilled workers to operate the facilities and cities love them. Data centers do all of this without emitting noise or air pollution and without creating additional traffic.
After Northern Virginia and Dallas-Fort Worth, the other top data center markets in 2016 were Chicago and Silicon Valley, California. To learn more about Dallas-Fort Worth’s data center market and Provision Data Services’ role in DFW, please contact our team today.