Table of Contents
Austin Colocation: Data Centers in Silicon Hills
Austin colocation facilities have emerged as one of the top choices for businesses needing retail colocation services. The city enjoys a booming tech industry, reliable network infrastructure, and a supportive business climate. Located in the southeastern part of Texas, Austin offers many cost-effective data center solutions. In this article, we’ll look at the top six reasons why an Austin colocation data center should make your shortlist.
Austin, Texas, Has a Thriving Data Center Industry
Austin has emerged as one of North America’s fastest-growing data center markets. Many of the colocation facilities in Austin reside in the MET Center business park, the city’s most prominent tech hub. Currently, Austin has 21 data centers and 13 colocation facilities. Some popular colocation facilities include:
- LightEdge Austin Data Center (7000 Burleson Rd, Austin, TX)
- CyrusOne Austin Data Center (7301 Metropolis, Austin, TX)
- Lumen Austin Data Center (500 B. Chicon Street, Austin, TX)
Because the city has multiple data center providers, customers can easily choose a partner that matches their needs and budget.
Austin Data Centers Can Access Reliable and Affordable Power
Austin Energy, the city’s largest utility provider, supplies electricity to businesses within Austin and other smaller counties like Travis and Williamson. The average cost of electricity in Austin is 12 ¢/kWh. This figure is 47% lower than the national average and 11% lower than the average rate in Texas. Attractive power rates drive down Austin colocation pricing.
In addition to its low electricity costs, the city offers many programs that help data centers tap into alternative energy sources at an affordable rate. The city’s utility company uses renewable energy like biomass, natural gas, coal, solar, and wind. These alternative energy sources help data centers meet growing commercial demands while matching their sustainability goals.
In 2012, the city’s council adopted a Climate Protection Program to help increase its renewable energy portfolio to 35% by the end of 2022. In addition to the protection program, Austin’s city council plans to use the Community Climate Plan to reach net zero greenhouse emissions by 2040.
Furthermore, Texas has a deregulated power market structure. This means data centers in Austin can choose their own power providers. This economic freedom gives data centers and customers more pricing options.
Austin Data Centers Offer Excellent Network Infrastructure
With over 130,000 miles of fiber optic network, data centers in Austin have access to one of the world’s most robust telecommunications systems. Here are some reasons why Austin’s network infrastructure is a magnet for data centers:
- The city has an ethernet and fiber architecture that is protected by fiber rings. This provides redundancy for data center providers and their customers.
- Central offices in Austin are equipped with digital switches that contain the latest digital-age services (ADSL and MPLS). These services allow data centers to prioritize internet traffic, reducing congestion and network downtime.
Furthermore, Austin has many cloud and fiber providers that data centers can partner with. One major cloud provider with availability zones in Austin is Google Cloud. Some other popular service providers include Earthlink, AT&T, CenturyLink, and Grande Communications.
Data Centers in Austin Can Tap Into Strategic Markets
As the capital of Texas, Austin is one of the fastest-growing metropolitan cities in the U.S. Because the city is located in the heart of the country, data centers in Austin can easily access major markets in North America, including Canada and Mexico.
The city is also home to popular universities such as the University of Texas at Austin, Texas State University, and Concordia University, Texas. These institutions produce a steady stream of talented graduates, making it effortless for colocation facilities and businesses to locate and recruit qualified employees.
Austin Offers a Tax-Friendly Environment
In a bid to grow its data center industry, Austin provides numerous tax incentives that inspire large data centers to invest in the city. Let’s take a closer look:
- Public school districts in Austin can offer tax breaks to businesses that invest within the community. These centers are entitled to up to 10 years of property tax breaks, provided that they generate jobs and build/install properties within the communities.
- Texas also offers a Sales Tax Exemption clause for colocation facilities. Data centers must have at least 100,000 square feet of space to qualify for these exemptions and employ at least 20 people at above-average wages. These data centers also expect to invest a minimum of $200-250 million into the state.
Austin’s tax breaks allow colocation facilities to save a premium on data center-related costs and, in turn, provide more competitive pricing to their customers.
Austin Has Stable Weather
Austin ranks very low for common natural disasters that are known to disrupt data center activity. Compared to other data center markets in Texas, like Dallas, Austin has only experienced 21 natural disasters within the last two decades. Although Austin ranks low for earthquakes, storms, and wildfires, the city does experience a lot of flash flooding.
Because many artificial lakes surround it, data centers in Austin are exposed to flooding beyond the flood planes. Luckily, the city’s emergency board helps businesses and residents prepare for the harsh weather. For example, they provide periodic updates on natural disasters that may affect the safety and progress of companies within the region.
All these efforts allow data centers and their customers to handle their business with adequate information and preparation.
How Brightlio Can Help With Austin Colocation Pricing
Are you in the market for an Austin colocation facility? At Brightlio, we match customers with data center providers in Austin and worldwide. We collaborate with our network of global data center partners to provide colocation solutions that match your unique requirements and budget.
Contact the team today to get started on your Austin data center quote.
If you liked this article, you might also like our in-depth guide on colocation services.
a new project together