Dallas Data Center Market

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The Dallas/Fort Worth region is one of the largest and most active data center markets in the United States. It is currently poised for a data center building boom, with more than 200 megawatts of potential capacity in the pipeline. Download this report to understand the Dallas data center market characteristics, trends and major players in the region.

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The Dallas/Fort Worth region is one of the largest and most active data center markets in the United States. It is currently poised for a data center building boom, with more than 200 megawatts of potential capacity in the pipeline. The Dallas data center market is benefiting from excellent power and fiber infrastructure, competitive economic incentives and robust competition among service providers.

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Dallas is notable for the diversity of its data center ecosystem, with strong demand for retail colocation, wholesale data center space, powered shell and build-to-suit projects. The market is boosted by its location in the center of the country, and sees demand for space from multiple business verticals, including hosting and cloud players as well as enterprise customers in finance and energy.

The Dallas/Fort Worth region is home to 2.5 million square feet (SF) of commissioned data center space, representing 278 megawatts (MW) of commissioned power, according to market research from datacenterHawk. That makes Dallas the third-largest market for data center space in the U.S., trailing only Northern Virginia and Silicon Valley. Demand for space is fairly strong, as reflected in the vacancy rate of 12.2 percent in the region.

The region’s data center capacity is spread across several sub-markets, including major carrier hotels in downtown Dallas, a cluster of facilities near Love Field to the West, a nexus of wholesale data centers in the “Telecom Corridor” in Richardson, and an emerging market further north in Plano.

Over the past two years, the Dallas market has emerged as a focus of significant investment by leading players in the data center industry. This includes new ownership and strategic focus impacting the major carrier hotels in our area, the entry of at least four new players in Dallas suburbs, and significant expansions by existing providers.

Download this report to understand the Dallas data center market characteristics, trends and major players in the region.