In 2024, the top secondary data center markets in Texas are evolving rapidly due to increasing demand for data storage and processing. Here are the top 10 secondary markets, each playing a crucial role in the state’s data infrastructure:

  1. San Antonio – Known for its favorable business climate and growing tech industry, San Antonio has become a significant hub for data centers. Companies are attracted by the city’s competitive power rates and robust infrastructure​ (Dallas Innovates)​.
  2. El Paso – Proximity to Mexico and affordable real estate make El Paso a strategic location for data centers. The city benefits from lower operational costs and a growing tech workforce​ (JLL Real Estate)​​ (Dallas Innovates)​.
  3. Lubbock – This West Texas city is gaining attention for its lower cost of living and investment in tech infrastructure, making it an attractive secondary data center location​ (Dallas Innovates)​.
  4. Corpus Christi – With its coastal location and growing emphasis on digital transformation, Corpus Christi is emerging as a key secondary market, particularly for industries needing disaster recovery solutions​ (JLL Real Estate)​.
  5. Midland-Odessa – Known for its oil and gas industry, the Midland-Odessa area is diversifying into tech, with new data centers supporting the region’s energy and industrial sectors​ (Dallas Innovates)​.
  6. Beaumont-Port Arthur – This region’s proximity to Houston and affordable land make it an appealing choice for data centers, especially those serving the petrochemical and energy industries​ (Dallas Innovates)​.
  7. McAllen – The city’s position on the US-Mexico border and growing tech infrastructure make McAllen a strategic location for data centers catering to both US and Latin American markets​ (Dallas Innovates)​.
  8. Waco – Centrally located in Texas, Waco offers a strategic advantage for data centers needing access to major Texan cities and enjoys lower land and operational costs​ (JLL Real Estate)​.
  9. Bryan-College Station – Home to Texas A&M University, this area is fostering a tech-friendly environment, making it an attractive secondary market for data centers, particularly those focused on research and development​ (Dallas Innovates)​.
  10. Tyler – Located in East Texas, Tyler offers lower real estate costs and a burgeoning tech sector, making it a promising location for data center development aimed at serving regional needs​ (JLL Real Estate)​.

These regions are capitalizing on their unique advantages such as cost-effectiveness, strategic locations, and expanding tech ecosystems to attract data center investments and play a vital role in the state’s digital economy.

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