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MARKET INTEL

DFW Data Center Alley

Dallas-Fort Worth ranks as America's second-largest data center market—a sprawling ecosystem of hyperscale campuses, enterprise facilities, and colocation providers spanning multiple submarkets. Here's your guide to navigating the DFW data center landscape.

#2
US Market Rank
3,000+ MW
Total Capacity
100+
Data Centers
$10B+
Annual Investment

The Dallas-Fort Worth metroplex hosts one of the world's most significant concentrations of data center infrastructure. From the pioneering Telecom Corridor of Richardson to emerging hyperscale developments in Allen and beyond, DFW offers a mature ecosystem with continued growth potential.

The DFW Data Center Market

DFW's data center market has evolved over three decades from telecom-focused carrier hotels to today's hyperscale campuses:

Market Evolution

  • 1990s: Telecom Corridor emergence in Richardson
  • 2000s: Enterprise data center growth, colocation expansion
  • 2010s: Hyperscale entry (Microsoft, Facebook, Google)
  • 2020s: AI/cloud acceleration, market expansion to new submarkets

Why DFW?

  • Fiber density: Decades of telecom investment created unmatched connectivity
  • Central location: Low latency to both US coasts
  • Power infrastructure: Robust grid with competitive rates
  • Business environment: Texas tax advantages and pro-business policies
  • Workforce: Large technical talent pool
  • Corporate presence: Fortune 500 headquarters drive enterprise demand

DFW Submarkets

The DFW data center market spans multiple distinct submarkets, each with unique characteristics:

The original data center hub along the Telecom Corridor. Mature market with extensive fiber infrastructure.

Capacity:800+ MW
Land:Limited - mostly redevelopment
Operators:CyrusOne, Digital Realty, QTS, Flexential

Growing market with strong corporate presence. Home to multiple Fortune 500 headquarters.

Capacity:500+ MW
Land:Moderate
Operators:Stream, Digital Realty, Aligned

Emerging hyperscale destination with major recent announcements.

Capacity:400+ MW (growing)
Land:Good
Operators:Meta, Google (rumored), others

Carrollton/Farmers Branch

Land Clearing →

Mature market near DFW Airport with excellent connectivity.

Capacity:400+ MW
Land:Limited
Operators:Digital Realty, CoreSite, T5

Western expansion of DFW market with available land and power.

Capacity:300+ MW (growing)
Land:Good
Operators:Various enterprise, growing hyperscale interest

Irving/Las Colinas

Land Clearing →

Enterprise hub near DFW Airport with corporate data centers.

Capacity:300+ MW
Land:Moderate
Operators:Corporate campuses, colocation

Major Players in DFW

Hyperscale Cloud Providers

  • Microsoft Azure: Major campus in Quinlan/Hunt County, expansion ongoing
  • Meta (Facebook): Large campus in Fort Worth, Allen development
  • Google Cloud: Colocation presence, potential owned facilities
  • Oracle: Significant Austin presence, DFW expansion

Colocation Providers

  • Digital Realty: Largest DFW portfolio across multiple campuses
  • CyrusOne: Pioneer in Richardson, multiple facilities
  • QTS (Blackstone): Large DFW presence
  • Stream Data Centers: Growing portfolio
  • Aligned Data Centers: Plano and expansion

Site Selection Considerations

Power Availability

DFW benefits from robust power infrastructure, but capacity varies by submarket:

  • Oncor serves most of the market with good capacity
  • Some outer submarkets may require transmission upgrades
  • Lead times for new substations: 18-36 months
  • Power costs competitive with national averages

Fiber Connectivity

  • Richardson/Plano: Extremely dense, all major carriers
  • Outer submarkets: Good connectivity, growing
  • Diverse routes available for redundancy
  • Meet-me facilities: Infomart Dallas, others

Land & Zoning

  • Core submarkets: Limited availability, higher costs ($100K-$500K/acre)
  • Emerging areas: Better availability ($50K-$150K/acre)
  • Most jurisdictions have data center-friendly zoning
  • Height restrictions vary by municipality

Land Clearing in DFW

DFW site preparation varies by location within the market:

Vegetation Types

  • Eastern DFW: Dense trees, brush, blackland prairie remnants
  • Western DFW: More open, some mesquite and cedar
  • Development sites: Often former agricultural land or pasture

Cost Ranges

ServiceCost per Acre
Light vegetation clearing$2,000 - $4,000
Heavy brush/tree clearing$4,000 - $8,000
Complete site prep (with grading)$15,000 - $35,000
Utility corridor preparation$50,000 - $200,000 each

Future Outlook

DFW's data center market shows no signs of slowing:

  • AI demand: Cloud providers expanding AI/ML capacity
  • Enterprise growth: Corporate relocations drive demand
  • Geographic expansion: Development moving to outer submarkets
  • Power investment: Utilities adding capacity
  • Competition: West Texas emerging as complementary market

Frequently Asked Questions

DFW is the second-largest data center market in the United States (after Northern Virginia) with over 3,000 MW of power capacity and growing. The market includes hundreds of facilities ranging from enterprise data centers to massive hyperscale campuses from Microsoft, Meta, Google, and other cloud giants.
Key submarkets include: Richardson (original data center hub along the Telecom Corridor), Plano (expanding market with corporate presence), Allen (emerging with major hyperscale developments), Carrollton/Farmers Branch (mature market), and Fort Worth (growing western expansion). Each has distinct characteristics and availability.
DFW's data center market grew from several factors: the 1990s telecom boom created the Telecom Corridor with extensive fiber, central US location provides low latency nationwide, diverse power grid with competitive rates, business-friendly Texas environment, large available workforce, and major corporate headquarters driving enterprise demand.
DFW data center clearing typically costs $3,000-$8,000 per acre for vegetation clearing, with complete site preparation (including grading) running $15,000-$35,000 per acre. Costs vary by submarket, vegetation density, and project specifications. Land costs are higher than West Texas but infrastructure is more developed.
While some DFW submarkets are constrained, significant land remains available—particularly in outer submarkets like Allen, McKinney, Forney, and the Fort Worth area. Competition for prime sites is increasing, but developers continue to find suitable parcels for both hyperscale and enterprise projects.
Typical DFW data center site preparation takes 8-16 weeks depending on project size and site conditions. Fast-track projects can be compressed to 5-10 weeks with multiple crews. Permitting in most DFW jurisdictions is relatively efficient compared to coastal markets.

Building in DFW?

Bear Claw Clearing provides site preparation services throughout the DFW metroplex. From Richardson to Fort Worth, we have the equipment and experience to deliver on your data center project.