Dallas Data Center Market Size (2024 - 2029)

The Dallas Data Center market is experiencing significant growth, driven by the expansion of hyperscalers and edge data centers, which are crucial for meeting increasing demand and reducing latency. The development of cloud computing has further propelled the market, with major cloud service providers partnering with colocation companies to support their infrastructure needs. As data generation surges across various sectors such as IT, telecom, BFSI, healthcare, and government, investments in the data center industry are expected to rise, despite potential challenges posed by rising capital costs and the impacts of the COVID-19 pandemic.

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Market Size of Dallas Data Center Industry

Dallas Data Center Market Summary
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

Dallas Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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.

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Dallas Data Center Market Size Summary

The Dallas Data Center market is experiencing significant growth, driven by the increasing demand for hyperscale and edge data centers. These facilities are essential for supporting the burgeoning needs of artificial intelligence, big data, and IoT technologies, which require substantial data processing and storage capabilities. The market is further bolstered by the expansion of cloud computing, with major cloud service providers like IBM Softlayer and Rackspace partnering with colocation companies to enhance their infrastructure. This trend is evident in the strategic acquisitions and investments by key players in the region, such as Digital Realty and VPLS, who are expanding their data center capacities to meet the rising demand. The market's growth is also supported by the ongoing development of sustainable and energy-efficient data centers, such as the Aspen Mountain Hyperscale Data Center complex, which aims to operate entirely on renewable energy.

The Dallas Data Center market is characterized by a fragmented landscape, with numerous key vendors employing mergers, acquisitions, and strategic partnerships to expand their market presence. Companies like Digital Realty Trust, Inc., DataBank, Equinix Inc., and Tierpoint LLC are actively investing in new projects and expanding existing facilities to cater to the increasing demand for cloud-based services. The market has seen significant land acquisitions and developments, such as Compass Datacenters' purchase of 375 acres in south Dallas and Equinix's expansion of the Infomart building. These developments highlight the region's strategic importance as a hub for data center operations, supported by the ongoing adoption of cloud computing and the need for scalable, efficient, and agile data center solutions.

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Dallas Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 & 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 By Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 By End User

          1. 1.3.1.2.1 Cloud & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End User

      2. 1.3.2 Non-Utilized

Dallas Data Center Market Size FAQs

The Dallas Data Center Market is projected to register a CAGR of 12.70% during the forecast period (2024-2029)

Digital Realty Trust, Inc., DataBank, Equinix Inc., Tierpoint LLC and Evoque are the major companies operating in the Dallas Data Center Market.

Dallas Data Center Market Report Snapshots

Dallas Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)