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— Blog

Everything is Growing Bigger in Texas

Lee Coleman, VP, Broker Partners
November 29, 2017

You’ve probably heard the phrase, “everything is bigger in Texas.” In the data center world, that adage is proving itself to be true. Already one of the U.S.’ largest metropolitan areas, Dallas is quickly becoming one of its busiest data hubs, as well.

An article from Data Center Frontier highlights some of the reasons why data center providers like Digital Realty are building and expanding facilities in the Dallas area. To find out some of what makes Dallas such an attractive location from our perspective, read on below.

The Business Climate
Often referred to as “the silicon prairie,” Dallas-Fort Worth metroplex is home to 43% of the state’s high tech workforce.

Major industries represented include defense, financial services, information technology and data, life sciences, semiconductors, telecommunications, transportation, and processing.

19 Fortune 500 companies are headquartered in the area, including Advance PCS, ExxonMobil, Kimberly-Clark, Neiman Marcus, Southwest Airlines, and Texas Instruments. There are seven TIFs (Tax Increment Finance Districts) in Dallas. TIFs essentially enable local governments to give businesses a small incentive to develop land by enabling them to apply property taxes as an upfront investment.

The Central Location
Location means a lot for data centers and their customers. For customers, proximity to the data center itself is important from a latency perspective. From an operator perspective, power procurement and opportunity for expansion are also top considerations.

Dallas has expanded considerably over the past decades, and continues to grow in population. We mentioned its skilled tech workforce above, but the growth of other workforces and population in general also increases the need for data center services.

Another attractive aspect of Dallas’ location is its relative low risk of natural disaster. Even though Digital Realty’s Houston facilities did not experience downtime during the recent hurricane, many customers are comforted by the idea that their colocation facility won’t even have to deal with the threat.

Want to learn more about Digital Realty’s Dallas facilities? Click here to get started.

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