Dallas Data Center Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Dallas Data Center Market Analysis
The Dallas Data Center market is valued at 419.64MW in the current year and is expected to reach a CAGR of 12.7% during the forecast period to 941.92MW by the next five years. A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
- Hyperscalers and edge data centers are the parts of the industry that are expanding quickly. While edge enables diversification and reduces latency, hyperscalers meet the rising demand. Artificial intelligence (AI) development will boost demand by requiring more data and increasing computing efficiency.
- The development of cloud computing has benefited the DFW market as well. Cloud service providers like IBM Softlayer and Rackspace have partnered with larger colocation companies to house their infrastructure. For instance, cloud providers account for a sizable amount of the 86 MW at Digital Realty's 68-acre Richardson campus, which has a total area of 68 acres. Hyperscale cloud providers are also aggressively building their data centers and renting regional space. This trend is projected to continue as data center users adopt cloud computing, and cloud providers depend on larger colocation providers for infrastructure support.
- As businesses in Dallas experience significant data generation across industries like IT and telecom, BFSI, healthcare, and government and defense, big data and IoT technology will increase investments in the data center industry.
- In the southern part of Dallas County, the market saw a land rush for all asset categories, including data centers. Rising capital costs will throw off this trend, which may impede speculative growth in the area.
- Furthermore, with the outbreak of COVID-19, the country was significantly affected, which disrupted data center service providers in the region. Moreover, with the nationwide travel ban enforced in the country, many organizations adapted to work from home, which increased the data traffic significantly and put tremendous pressure on the data center, coping with the existing capacities to prevent downtime.
Dallas Data Center Market Trends
Cloud Computing in BFSI is anticipated to hold a significant share
- The data center model has changed thanks to cloud computing. Traditional data centers, which run on hardware and require a lot of room, are no longer practical. As a result of the commercialization of storage, computing, and network resources by cloud providers, hyperscale cloud-based data centers have emerged. These public cloud service providers directly own and manage these data centers.
- They can offer their services for much less money than on-premise data centers. Everything is controlled digitally in data centers that utilize the cloud. Cloud computing has completely transformed how data centers are managed nowadays. Although cloud computing has many benefits in data centers, the three most important are agility, efficiency, and scalability.
- Data centers are the foundational infrastructure for cloud-based digital technologies, supporting anything from video streaming and online gaming to enterprise applications for remote and in-office work, 5G networks, and Internet-of-Things networks. Switch Inc., a Dallas-based operator of data centers, was acquired by Boca Raton, Florida-based DigitalBridge Group Inc., and investment services provider IFM Investors for $11 billion in December 2022.
- A data center facility in Dallas with 18.8 acres of land and a 75,000-square-foot current data center that is 100% leased to a technology company was purchased by managed hosting provider VPLS in August 2022. At the facility, which can support up to 16 MWs of power and now supports 2.5 MWs, VPLS intends to build more data center space.
- Despite a general deal-making downturn, private equity companies purchased data centers in almost record numbers last year to meet the rising demand for cloud computing and data storage. In March of last year, KKR & Co., a New York-based private-equity and infrastructure investment firm Global Infrastructure Partners, closed a $15 billion acquisition of data center operator CyrusOne Inc.
Rising Adoption of Hyperscale Data Centers
- The rising adoption of hyperscale data centers is a significant driver of the data center market. Hyperscale data centers are large-scale facilities designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
- For instance, in June 2022, the Aspen Mountain Hyperscale Data Center complex, the world's first sustainable hyperscale data center development, will be a carbon-negative, multi-business environment thanks to 100% heat reuse, according to Wyoming Hyperscale White Box. The 100% liquid-cooled, technology-neutral information technology equipment (ITE) will be used across the 120 MW master-planned campus, which will also run entirely on renewable energy and require no refrigerant or industrial water. The project's 30-MW initial phase is being built, and commissioning is scheduled to start in 2023.
- The adoption of hyperscale data centers is driven by the increasing demand for cloud-based services and applications and the growth of big data, artificial intelligence, and the Internet of Things (IoT). These technologies require vast amounts of data processing and storage, which large-scale data centers can only provide.
- AWS has filed publicly to erect a new facility outside of Dallas in DeSoto, Texas. Work on the 30,000 square-foot (2,790 square meters) data center is expected to start early in 2019 with a target completion date of 2024. The building is referred to as the Ezell Drive Campus, and reports claim that HSK is responsible for its design.
- These data centers are typically owned and operated by cloud service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as large enterprise companies like Facebook and Apple. Hyperscale data centers are characterized by their massive scale, with some facilities spanning over a million square feet and containing tens of thousands of servers.
Dallas Data Center Industry Overview
The Dallas Data Center Market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some of the players as Digital Realty Trust, Inc., DataBank, Equinix Inc., Evoque, and Tierpoint LLC
At 1505 Ferris Road, Digital Realty intends to construct a one-story, 16,800 square meters (181,200 square feet) core and shell data center. The project is known as "Project Gold Garland," according to the business. Up to $59.4 million is what Digital Realty is looking to put into the venture. Beginning in February 2023, construction is anticipated to last until August 2024. Up to $110 million will be invested in the facility by NTT.
In April 2023, Compass Datacenters increased its land holdings in south Dallas by more than twofold by purchasing 375 acres in Red Oak, Texas. Compass Datacenters has more than doubled its existing landholdings by acquiring 375 acres of undeveloped property in Dallas, Texas.
Dallas Data Center Market Leaders
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Digital Realty Trust, Inc.
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DataBank
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Equinix Inc.
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Tierpoint LLC
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Evoque
*Disclaimer: Major Players sorted in no particular order
Dallas Data Center Market News
- April 2023 - Equinix purchased the Infomart building in Dallas, Texas, and announced plans to enlarge the property. This expansion will see $180 million injected into the 1990 N. Stemmons Freeway property. The company's extension will include a four-story office and a four-story data center, increasing its total square footage to more than 211,000 square feet (19,600 square meters).
- April 2023: Dallas-based Bandera Ventures and Skybox Datacenters will build a multi-building data center complex near Lancaster, Texas. The Dallas Morning News was the first to report on the prospective campus, which is planned for a more than 100-acre site 12 miles south of downtown Dallas and immediately east of Interstate 35E that Bandera recently bought. This project will be the third time Skybox and Bandera have collaborated on a project. The two businesses previously collaborated to establish data center facilities in Houston and Plano.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
- 4.1 Smartphone Users
- 4.2 Data Traffic per Smartphone
- 4.3 Mobile Data Speed
- 4.4 Broadband Data Speed
- 4.5 Regulatory Framework
- 4.6 Value Chain Analysis
5. MARKET OUTLOOK
- 5.1 IT Load Capacity
- 5.2 Raised Floor Space
- 5.3 Number of Racks
6. MARKET SEGMENTATION
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6.1 By DC Size
- 6.1.1 Small
- 6.1.2 Medium
- 6.1.3 Large
- 6.1.4 Massive
- 6.1.5 Mega
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6.2 By Tier Type
- 6.2.1 Tier 1 & 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 By Absorption
- 6.3.1 Utilized
- 6.3.1.1 By Colocation Type
- 6.3.1.1.1 Retail
- 6.3.1.1.2 Wholesale
- 6.3.1.1.3 Hyperscale
- 6.3.1.2 By End User
- 6.3.1.2.1 Cloud & IT
- 6.3.1.2.2 Telecom
- 6.3.1.2.3 Media & Entertainment
- 6.3.1.2.4 Government
- 6.3.1.2.5 BFSI
- 6.3.1.2.6 Manufacturing
- 6.3.1.2.7 E-Commerce
- 6.3.1.2.8 Other End User
- 6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Digital Realty Trust, Inc.
- 7.1.2 DataBank
- 7.1.3 Equinix Inc.
- 7.1.4 Rackspace Technology
- 7.1.5 Tierpoint LLC
- 7.1.6 Evocative
- 7.1.7 Flexential
- 7.1.8 Sungard Availability Services
- 7.1.9 Tierpoint LLC
- 7.1.10 Evoque
- 7.1.11 Hivelocity
- 7.1.12 Colocrossing
- 7.1.13 Scale Matrix
- 7.1.14 Stack Infrastructure
- 7.1.15 Cogent
- 7.1.16 Cologix
- 7.1.17 Opus Interactive
- *List Not Exhaustive
- 7.2 Market share analysis (In terms of MW)
- 7.3 List of Companies
Dallas Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Dallas Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), Tier Type (Tier 1&2, Tier 3, Tier 4), Absorption (Utilized (Colocation Type (Retail, Wholesale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), and Non-Utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
Frequently Asked Questions
What is the current Dallas Data Center Market size?
The Dallas Data Center Market is projected to register a CAGR of 12.70% during the forecast period (2024-2029)
Who are the key players in Dallas Data Center Market?
Digital Realty Trust, Inc., DataBank, Equinix Inc., Tierpoint LLC and Evoque are the major companies operating in the Dallas Data Center Market.
What years does this Dallas Data Center Market cover?
The report covers the Dallas Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Dallas Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Dallas Data Center Industry Report
Statistics for the 2024 Dallas Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Dallas Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
