The Dallas-Fort Worth data center market is the second-largest data center market in the U.S. after the Northern Virginia region surrounding Ashburn. In the data center site selection matrix, DFW delivers high scores across all critical categories including affordable and robust power, significant fiber infrastructure, aggressive economic incentives and minimal disaster risks. The result is the continued expansion across all data center sectors: hyperscale cloud providers, powered shell developers and retail colocation companies.
The negative economic impact of the COVID-19 pandemic across so many business sectors has only highlighted the critical importance of the data center and has thus grown the data center market. With so many businesses relegated to a strict work-from-home mandate, everyone’s IT infrastructure has been severely tested — raising the importance of their networks, cloud services and bandwidth — to provide what employees received in an office environment. Across the data center and colocation market, many developers and operators have continued with a business-as-usual mandate.
The COVID-19 impact isn’t expected to have a long-term negative economic impact, according to a Grand View Research study. “The global data center colocation market size is expected to reach USD 104.77 billion by 2027, expanding at a CAGR of 12.9% from 2020 to 2027,” the report said.
The primary growth drivers are the continued trends toward cloud computing and workloads; migration of private data centers to third-party managed colocation facilities; customer demand for more content-driven capacity on their devices; and business demand for big data analytics. The Dallas-Fort Worth region will continue to see its share of future growth due to these factors.
Dallas-Fort Worth noted for multiple data center submarkets
The DFW region is comprised of over 10 separate geographical submarkets, which is very different from most of the other top 10 U.S. markets. Silicon Valley is concentrated in Santa Clara, tapping into the much cheaper power of Silicon Valley Power. The Northwest U.S. (Washington/Oregon) is centered in Hillsboro Oregon and the eastern Washington region, with small clusters in the Seattle central business district and Tukwila. The Northern Virginia region is centered in Ashburn due to the masses of hyperscale cloud operators and wholesale colocation companies.
All of the DFW submarkets can offer similar competitive site selection factors to ensure a robust data center. Some of the larger data center submarkets include:
The South Dallas County submarket, where Google is building a 200 MW+ campus in Midlothian, has received significant press coverage. Compass Datacenters, which announced its intention for over 200 MWs in Red Oak, is also part of this emerging submarket.
Notable data center competitors in DFW
Out of many data center operators, cloud facilities, large retail colocation competitors and wholesale colocation and powered shell developers, the following are the notable competition that have significant operations across DFW:
The Dallas-Fort Worth data center market continues to solidify its position as one of the largest and most active data center markets in the U.S. As IT requirements continue to grow, we can expect more data center facilities to come on line in the coming years.