Why Data Centers Are Setting Up Shop in Austin, Texas

An illustration of the Sabey Data Centers campus planned for Round Rock, near Austin, Texas. (Image: Sabey Data Centers)

A new white paper from Sabey Data Centers explores the many factors that are driving data centers to Austin, Texas.

Get the full report.

As we emerge from COVID-19, Austin, Texas has emerged as one of the fastest growing cities in the nation in terms of job growth. Sabey Data Centers says that much of growth has been driven by the region’s culture. The “thriving art and music scenes, a diverse and inclusive population, and a focus on work-life balance make Austin’s culture unique and desirable.”

Austin is also home to a highly educated workforce that’s helping to transform the region into a mecca for both technology startups and data centers.

Sabey notes the state’s business-friendly environment is a factor that brings in technology companies like Google, Amazon, Apple, Facebook, and SpaceX. In addition to a favorable tax environment that has no corporate income tax for employees, Sabey says that the cost of living and doing business in Texas means companies can see increased capital funds, higher profits, lower operating costs, and increased purchasing power.

As our digital world expands into the Austin market, a local data center presence can help your company thrive in the area. – Sabey Data Centers, “How Austin’s Emerging TechHub Became the New Home for Data Centers“

The paper sites 2022 data from the Milken Institute that says “Austin is the second best-performing city for long-term, sustainable job creation.” They note that “taking advantage of this growth can mean a company getting the first pick of a thriving talent pool, a critical element toward scaling IT operations in the region, including establishing a data center presence.”

The paper notes that IT leaders would be wise to establish a relationship with a colocation partner quickly. “With a growth rate of 33.7% between 2010 and 2020 and an additional 27.6% estimated by 2030, demand for data centers in the Austin area is underserved. As providers mobilize to meet that need, securing data center space early in the tight market will help your enterprise establish itself in Austin and position it to take advantage of future growth.”

Download the full report to learn more about the Austin, Texas data center market.