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Dallas Data Center Colocation

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    Dallas Colocation: Powering Business Success in the Heart of Texas

    Whether you’re a burgeoning startup or a well-established enterprise, the ability to store, manage, and access data with speed, reliability, and security is paramount. This is where Dallas colocation steps onto the stage as a formidable solution that can revolutionize the way businesses operate.

    Dallas is the 9th largest market for data centers with over 650 Megawatts of provisioned power, according to Cushman & Wakefield. Dallas, with its strategic location, robust infrastructure, and a wealth of colocation providers, offers an array of benefits that can give your business a competitive edge. In this blog post, we will delve into the world of Dallas colocation and explore the numerous advantages it brings to the table. Whether you’re looking to enhance your IT infrastructure, boost scalability, improve disaster recovery capabilities, or simply reduce costs, you’ll find that Dallas colocation is a powerful tool in your business arsenal.

    Join us as we uncover how Dallas colocation services can drive efficiency, resilience, and growth for your business in the digital age. From cost savings to enhanced performance and everything in between, you’ll soon discover why Dallas is the ideal destination for businesses seeking to harness the full potential of colocation.

    Dallas server colocation

    Dallas Offers a Strategic Geographic Location

    Dallas’s strategic location is a key advantage that makes it an ideal destination for colocation data centers. Positioned in the heart of the United States, Dallas serves as a geographic hub, offering unparalleled connectivity and accessibility for businesses. Here’s how Dallas’s location plays a pivotal role in the success of colocation data centers:

    Centralized Accessibility

    Dallas is strategically located within easy reach of major cities across the country. This central location minimizes latency and reduces data transmission times, ensuring that businesses can serve their customers and clients with lightning-fast response rates. Whether your clients are in New York, Los Angeles, or anywhere in between, Dallas’s central position means that data can flow seamlessly, supporting a superior user experience.

    Disaster Resilience

    Dallas’s location offers a level of geographic stability that is reassuring for disaster recovery planning. Unlike some coastal cities prone to natural disasters, Dallas is relatively safe from hurricanes and earthquakes. This stability makes it an attractive choice for businesses looking to safeguard their critical data and operations.

    Furthermore, what sets Dallas apart from many other major metropolitan areas is its energy infrastructure. Texas operates its own independent power grid, separate from the Eastern and Western grids of the United States. This self-contained power grid provides a unique advantage in disaster recovery planning. In the event of power disruptions caused by natural disasters or other factors, Dallas’s colocation data centers can rely on a resilient and locally managed energy supply. This added layer of independence can significantly reduce the risk of downtime and data loss during unforeseen circumstances.

    Proximity to Business Hubs

    Dallas is not only a bustling business hub in its own right but also in close proximity to other major business centers in Texas, such as Austin, Houston, and San Antonio. This makes it an excellent choice for companies that want to establish colocation facilities that cater to multiple regions within the state, further enhancing its appeal as a data center destination.

    In summary, Dallas’s strategic location in the heart of the United States provides a strong foundation for colocation data centers to thrive. Its central accessibility, global connectivity, disaster resilience, and proximity to key business hubs make it a prime choice for businesses seeking a reliable, high-performance colocation solution. Dallas truly stands as a gateway to business success through its strategic location for colocation data centers.

    Data centers in Dallas

    Power Costs in Dallas Are Lower Than the National Average

    Texas is the only state not connected to the national grids that serve the eastern and western United States. As a result, Texas produces electricity consumed within the state without oversight from the Federal Power Commission. The state of Texas also has an abundance of natural power sources that reduce power costs. As power is one of the biggest expenses for colocation, this can add up to meaningful savings for your business.

    Dallas’s electricity cost per watt is relatively low, making it much more affordable compared to other popular regions for colocation, like Northern California and Virginia. Compared to the US business electricity cost average of 13.45 cents per kWh, business power cost in Dallas averages 9.72 cents per kWh. As power is one of the most important cost drivers for colocation services, the lower cost of power helps drive down colocation pricing in Dallas.In addition, by introducing a competitive electricity generation and supply market, power companies in Dallas are incentivized to reduce power expenses. This competition lowers the cost of energy in Dallas, thus lowering the cost of colocation.

    In pursuit of renewable and sustainable power generation, Texas has a natural supply of gas that allows the state to support data centers. Because a lot of energy generation options exist in Dallas, data centers have a variety of reliable options to choose from. This lowers the cost for power and provides backup options in the event of a grid failure.

    Dallas Is a Highly Tech-Enabled Landscape

    Dallas has positioned itself as a city with access to major cloud service providers. Both Google Cloud and IBM Cloud have availability zones in Dallas. This tech-enabled environment makes it the perfect hub to promote the emergence of data centers. 

    With numerous big tech corporations like Texas Instruments and Verizon calling Dallas home, you can easily find skilled and knowledgeable IT staff to hire for your data requirements. As a result, this city attracts all kinds of top talents that can efficiently manage and service data center infrastructure.

    There are also technical advantages to the Texas power grid. Many data centers are located in Dallas because the power isolation system protects them from outage problems affecting other national grids. With recent governmental reform, the Electric Reliability Council of Texas (ERCOT) protects against extreme weather conditions by penalizing power providers that do not protect their stations against severe weather. This policy incentivizes power supply companies to protect against circumstances that may affect reliable power supply.

    Dallas Has an Abundance of Colocation Centers

    Dallas is home to numerous data centers because it provides all the resources they need to thrive. With reliable fiber infrastructure and robust electricity, more and more colocation facilities spring up annually within the city. The Dallas colocation industry is the second largest in the United States, just behind Northern Virginia.

    Many businesses choose to have their headquarters in Dallas. These corporations need data center space, creating a bubbling ecosystem of data centers and related services. Dallas has 140 data centers with hundreds of megawatts of commissioned power. Many of the colocation facilities in the city populate the downtown area of Dallas, including DeSoto, Midlothian, Red Oak, and Wilmer. 

    The abundance of colocation service providers gives you a variety to choose from in an area specifically designed to provide reliable support. Over 40 multi-tenant colocation centers offer retail colocation services to businesses.

    Dallas Has Fantastic Internet Connectivity and Network Infrastructure

    Fiber infrastructure in Dallas is robust, with extensive interconnectivity and high bandwidth access. With multi-national telecommunication companies operating in the area, colocation customers have a variety of network providers to choose from. 

    Top telecom companies in the city include Logix, CenturyLink, Sprint, Verizon, and EarthLink. As such, data centers in Dallas can easily connect to AWS, Google, Azure, and other essential partners via a robust carrier system.

    With a central location in the middle of the US, Dallas data centers also allow you to service customers in strategic markets like AustinAtlantaDenverPhoenixSalt Lake CityLos Angeles, and San Diego. You can also service customers with relatively low latency in Mexico and other parts of Latin America.

    Dallas Enables Business Scalability 

    Dallas ranks well below other US metropolitan cities when it comes to the cost of running a business. The costs of labor and rent are especially low when compared to other large states like Califonia. Texas has over 120 financial incentives and favorable regulatory policies that allow businesses to thrive.

    Dallas also has one of the largest concentrations of corporate headquarters, with over 20 Fortune 500 companies calling Dallas home. This concentration means a constant demand for data centers. The impending competition makes Dallas the perfect city to find affordable colocation services for your business.

    With two major international airports, Dallas presents a massive opportunity for new businesses, providing an incentive for favorable regulation and tax breaks. Moreover, for companies interested in tapping into a large pool of highly skilled labor, Dallas provides the perfect opportunity as the city is a magnet for diverse tech-related skills. 

    Dallas Has an Abundance of Affordable Real Estate 

    Since early 2021, there has been an exodus of tech companies from Silicon Valley, California, due to a rise in housing costs and other issues. Many CEOs opt for Dallas data centers to lower real estate prices. Real estate prices in Dallas are around 8% cheaper than the national average. This makes the city very attractive for companies seeking and providing colocation services. 

    Due to weather concerns and natural disasters, many buildings in Dallas are constructed in line with national building codes to withstand high winds. This building standard provides additional security and safety for many colocation centers within the city.

    Dallas Offers Lucrative Tax Incentives for IT

    Significant tax breaks exist for colocation centers in Dallas, allowing corporations to save millions of dollars in expenses annually. In 2013, Texas legislators passed a bill that eliminated taxes on qualifying hardware and software purchases for data centers. This tax break allows companies like yours to reduce costs and channel resources to other pressing business needs.

    Data center occupants are 100% exempt from paying the 6.25% state sales for up to fifteen years on their electricity consumption and equipment. You can enjoy tax breaks on purchasing servers, storage devices, generators, cooling systems, and software. These breaks are part of the reason why many data centers spring up in Dallas, giving your business a variety of options to choose from.

    As a central location in the US, this city connects the US and Latin America, attracting many international companies that incentivize legislators to develop favorable regulations that support growing businesses.

    Data centers in DFW

    Dallas Data Center Options We Recommend

    Dallas has many data center options to choose from. Here are a few options Brightlio recommends:


    Cologix operates three data centers in the city (DAL1-DAL3). All three data centers are located near downtown Dallas in the renowned Infomart building at 1950 North Stemmons Freeway. Dallas Infomart is the region’s preeminent carrier hotel. It is considered to be the nexus of the interconnection marketplace for the South Central United States. In total, Cologix offers 53,000 square feet of space in Infomart.

    Why we recommend these data centers:

    • Robust network connectivity and bandwidth options in one of the most robust communications markets.
    • They operate the core meet me room in the Infomart building.
    • Direct connections to public cloud service providers including AWS, Google, Microsoft, and IBM cloud.
    • Cologix operates data centers across the USA and Canada.


    Evoque operates two data centers in the Dallas, Texas region. Their Allen data is 20 miles north of Dallas with easy access to DFW airport. It offers 112,292 square feet of colocation space with 24x7x365 security. The site offers higher power densities with up to 300W per square foot.

    Evoque’s Webb Chapel data center is larger, with over 140,000 square feet of colocation space. It features direct access to public cloud service providers.

    Why we recommend these data centers:

    • Ample space across two sites gives customers options and flexibility.
    • Evoque’s data center footprint across the USA means enterprises can use them for a national colocation strategy.
    • The sites meet multiple compliance standards, including SOC 2 Type II, SOC 3, ISAE 3402, and PCI-DSS.


    Flexential has three data center options in the area located in downtown Dallas, Plano, and Richardson. Combined space in the market is over 459,000 square feet. Flexential offers remote hands, DDoS protection, disaster recovery, and other support options.

    Why we recommend these data centers:

    • Three sites to choose from provides enterprises with multiple space, bandwidth, and support options.
    • Power density of 1,500+ Watts per square foot.
    • Both retail and wholesale colocation space options.


    Psychz Dallas data center is located at 1515 Round Table Drive in Dallas. The facility features over 100,000 square feet of data center space and 8 Megawatts of power.

    Why we recommend Psychz Dallas:

    • Multiple space and power options including single server colocation, quarter rack, half rack, and full rack configurations.
    • Carrier neutral with access to 1,000 major network hubs.
    • With other locations in Northern Virginia, Los Angeles, and Chicago, Psychz is a good partner for a national colocation or disaster recovery strategy.

    Brightlio Delivers Dallas Colocation!

    If you’re in the market for colocation services, a Dallas, TX data center might be right for you. Dallas is a growing tech hub that provides reliable and affordable power supply, robust fiber connectivity, and favorable tax incentives.

    If you are interested in learning more about colocation space in Dallas, or other locations, Brightlio can help. Our global network of colocation providers means we have the right partner for your needs and budget. We offer services from single server colocation to dedicated servers, racks, cabinets, cages, and suites. As a telecommunication broker, our services are free to you.

    Brightlio is also leading provider of network connectivityunified communications, cloud-on ramps, and public cloud services. Our service portfolio makes us the perfect partner for all your technology requirements.

    Contact Brightlio today!

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