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Texas – The Next Silicon Valley and Spotlight for Data Center Developers

Massive data center leasing isn’t just a Northern Virginia trend anymore. In recent years we have seen how the movement produced by Data Centers has been developing an exponential rise around other regions. This is not odd since Texas is a top-five market for multimillion-dollar facilities full of blinking and humming racks of computer servers. According to Dallas Innovates, Texas is one of the five Tier 1 markets for data centers in the US, a list that includes Chicago, the New York metropolitan area, Northern California and Washington DC.

What makes the Texas data center market stand out?

Most noteworthy is the diversity of its data center ecosystem. Texas’s deregulated power market presents an attractive opportunity for data center developers because their ability to participate in a market without restrictions inevitably makes power less expensive.

The latest region to report super-sized deals is Dallas/Fort Worth, which had 286 megawatts of absorption in the first half of 2022, according to Cushman & Wakefield. The region’s thriving industrial market, solid connectivity infrastructure, access to talent, pro-tech environment, and ample and affordable power makes Dallas an ideal location to expand its hyperscale data center campus footprint. The affordable energy and leasing make it unique; Texas has also emerged as one of the fastest-growing states in the nation regarding job growth. Sabey Data Centers says that much of its 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, helping transform the region into a mecca for technology startups and data centers. Sabey notes that 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 with 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.

How important is Texas for Direct Line Global?

Expansion in our current and potential markets is essential to our business strategy. Our comprehensive geographical coverage (North America and Asia Pacific) enables us to identify and react swiftly to new trends and opportunities. In addition to helping the needs of our individual and commercial, and institutional clients, we connect with local communities to build sustainable and successful partnerships with enterprises.

As a location with low energy costs, booming industrial development, and an attractive standard of living, the Texas region is ideal for Hyperscalers, cloud providers, and large enterprises looking for digital infrastructure in the Central US. Direct Line’s focus in the central part keeps growing and building up; we currently have an impressive number of technicians, project engineers, supervisors, and contractors working on mission-critical projects in that area that have been creating significant growth for our industry and business for the last couple of years.

What’s coming?

Due to the growing demand for our services from our key clients and strategic partners in Texas, Direct Line Global is thrilled to expand and open a brand-new office at 1219 Digital Drive, Suite 110, Richardson, Texas. This move will allow us to reach a broader market to support our projects and initiatives in the area. We eagerly enter this market and look forward to providing our hyperscale customers with trusted low-voltage solutions. Additionally, our portfolio of projects in the area is projected to grow, allowing us to provide a job and a career for our employees.

To learn more about career opportunities at Direct Line Global, please click here.

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