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DFW Data Center Market Report: Q1 2026

Market Overview

Dallas-Fort Worth has cemented its position as one of the fastest-growing data center markets in the United States. With nearly 200 colocation facilities spread across the metroplex, DFW offers enterprise buyers a compelling combination of abundant power, competitive costs, and world-class connectivity.

The market’s growth trajectory continues to accelerate. Over the past twelve months, several major providers have announced expansion plans in the region, driven by insatiable demand for AI and high-performance computing infrastructure.

STAT 200+ Colocation facilities currently operating across the DFW metroplex

Power and Infrastructure

DFW’s data center ecosystem benefits from Texas’s deregulated energy market under ERCOT. Facilities in the region report an average PUE of 1.35, with newer builds achieving sub-1.2 efficiency ratings through advanced cooling technologies.

Total deployed power capacity across the metro exceeds 500 MW, with an additional 300+ MW in various stages of development. The region’s power infrastructure has proven resilient, though the 2021 winter storm prompted significant investments in on-site generation and grid hardening.

Key Providers

The DFW market is anchored by several major colocation providers:

  • Equinix operates multiple International Business Exchange (IBX) data centers across Dallas, offering dense interconnection and cloud on-ramp services
  • QTS Realty Trust maintains a significant campus presence with hyperscale-capable facilities
  • DataBank provides enterprise colocation with a strong focus on compliance and managed services
  • CyrusOne (now part of KKR and GIP) offers large-format data center space optimized for cloud and AI workloads
  • Digital Realty provides colocation and interconnection services across multiple Dallas facilities

AI Infrastructure Demand

AI workloads are reshaping the DFW data center landscape. Demand for high-density compute space, 30+ kW per rack, has surged as enterprises deploy GPU clusters for training and inference workloads.

STAT 45+ AI-ready facilities in the DFW market with GPU infrastructure support

Several providers have responded by retrofitting existing facilities with liquid cooling capabilities and high-density power distribution. New builds are being designed from the ground up to support 50+ kW per rack densities, with direct liquid cooling (DLC) as a standard offering rather than an upgrade.

The presence of major cloud providers (AWS, Azure, and Google Cloud all operate regions in Texas) creates strong demand for colocation space with direct cloud connectivity.

Outlook: Q2 2026

Watch for continued expansion announcements in the DFW corridor. Key trends to monitor:

  • Land acquisition along the I-35 and I-20 corridors for new campus developments
  • Power availability as utility providers race to meet data center demand
  • Liquid cooling adoption accelerating as AI workload density increases
  • Fiber network expansion supporting 400G and 800G interconnects between facilities

DFW remains one of the most attractive markets for colocation investment in the United States, offering the rare combination of available power, favorable economics, and proximity to a deep talent pool.

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