San Antonio Attracts Data Centers

San Antonio has become a hotbed for corporate data center developments over the past 24 months with major data center announcements coming from six major companies.

Reasons for San Antonio's explosive data center growth include a safe, central U.S. location, low risk of natural disasters, new reliable infrastructure, excellent connectivity, and inexpensive electricity. At sub $.05 per KWH, San Antonio's electricity costs rank among the lowest of major U.S. cities.

Dallas-based Stream Realty Partners, L.P. recently broke ground on its second Ready-to-Fit (RTF) Data Center building on a 33-acre site in Westover Hills, the premier corporate office park in San Antonio, Texas. The 150,000-square-foot, structurally-enhanced, powered shell data center building will have eight-inch thick concrete walls and a 24-inch thick concrete roof system designed to withstand 175 mph winds. The building is expandable to 350,000 square feet and is pre-approved by the city for all necessary data center improvements.

San Antonio and Stream Realty are on the leading edge of high demand from corporations. In fact, more than 80 percent of North America-based corporations plan to expand their data centers over the next two years, according to a study conducted by research firm Campos Research & Analysis and commissioned by Digital Realty Trust Inc., a San Francisco-based REIT that owns and manages corporate data centers.

The study, which surveyed top executives in a variety of industries, also found that 75 percent of the companies that plan to expand will do so in two or more locations.

The survey also found that security was ranked as the most important factor in selecting a geographic location for data centers. Telecom and accessibility for company personnel were also critical, though taxes, labor pool and real estate costs were less important, according to survey participants.

More than half of the respondents plan to use a partner to implement their expansion plans, and   only 35 percent are planning to implement the expansion themselves.