Texas Data Center Demand

Posted by Michael Lahoud on Thu, Nov 15, 2012 @ 04:06 PM

As most everyone has noticed by now, the Texas data center market remains one of the most active in the country.  In response to growing demand, our team is currently developing Private Data Centers in Dallas and Houston aimed for corporate users.

The reasons for this are numerous, but there are three main factors driving the market.

The Right Population

Most companies like to have data centers where they have people to support IT functionality.  Texas has a very robust supply of IT professionals.  In addition to support personnel, data centers are often located near the customer base to which they provide services.  Whether they are internal customers or external customers (think cloud services, Facebook, YouTube, etc.), Texas has the right mix of users.  Based on 2012 data, the state has more than 26 million people.  Texas also serves as home to more than 50 of the Fortune 500 companies.  Combine these two and you can quickly understand why there is such a high demand for data center space.

Economic Factors

Unlike the majority of the country, Texas’s economy has been growing over the last decade thanks in large part to low taxes and low cost of living (more information on specifics can be found here).  What this ultimately means is more corporate growth in the form of existing company expansion and, more importantly to the rapid need for data center space, a large amount of companies relocating to Texas.  In 2010, Texas ranked in the top ten for corporate relocations with more than 7,000 new businesses moving to the state, according to Site Selection Magazine.  Robust job creation, a thriving O&G industry and a business-friendly environment all point to the trend continuing.

Prime Location

As most people familiar with the data center industry know, location plays a major role in data center site selection.  At a macro level, being centrally located, away from major physical threats and near dense population centers are key drivers in regional selection criteria.  In Texas, a debate exists around physical threats, specifically tornados and hurricanes.  Both of these can be mitigated with proper design and planning at the building and operations level.  Drilling in to micro level drivers, most cities within Texas are very easy to work with from a planning and development perspective.  This business-friendly attitude shows itself in the form of aggressive incentives from local governments.

As you can tell, there are good reasons why data centers continue to pop up across Texas.  Looking for a data center in the area?  Learn more about what makes our product different by downloading our brochures below.

Stream Private Data Center - The Woodlands / Houston Market

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Stream Private Data Center - Richardson II / Dallas Market

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Tags: data center insights, houston data center, texas data center, data center location, dallas data center