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A Simple Guide To Colocation In Dallas

A Simple Guide To Colocation In Dallas

Colocation allows businesses to have all the benefits of a private data center without the upfront expense of building (or buying) one. It is used all over the world and, at a high level, the benefits, challenges, and costs of colocation all work in much the same way. There are, however, some differences between different areas. With that in mind, here is a quick guide to colocation in Dallas.

An overview of the Dallas business landscape

Dallas rose to prominence as a major producer of cotton and then became the hub of the USA’s petroleum market. These traditional industries are still active today but they have been supplemented by several more future-facing counterparts. For example, Dallas’ manufacturing industry has moved away from cotton gins and now focuses more on aerospace, defense, and technology.

In addition to manufacturing (and agriculture), Dallas has developed a strong presence in finance, healthcare, energy (not just petroleum), telecommunications, and technology. The financial sector is bolstered by the presence of major banks and financial institutions, while the healthcare industry thrives with leading medical facilities and research centers.

The city’s tech landscape extends from a burgeoning startup scene to established technology giants. Technology plays a transformative role in Dallas’s industries, acting as a catalyst for innovation and growth. Dallas’s commitment to technological integration positions it as a hub for industries seeking to harness the benefits of digital transformation.

Benefits of colocation in Dallas

The main benefits of colocation in Dallas are:

  • Cost-effectiveness
  • Flexibility
  • Convenience

Here is a closer look at each of these points.


The strength of Dallas’ economy is reflected in its real estate prices. This means that buying the land or building needed for a data center is likely to require significant upfront expenditure. With colocation in Dallas, businesses can avoid that expense but still leverage the potential operating efficiencies of doing business with a data center.


The public cloud is known for scalability. Data centers are known for customizability. With colocation, however, businesses can have both. It’s true that colocation is neither as scalable as the public cloud nor as customizable as an in-house data center. For many businesses, however, this is not an issue. Colocation can be used to fulfill their core needs. If necessary, it can be complemented by other infrastructure.


With colocation, businesses can have the colocation vendor deal with all the practicalities of running data center infrastructure. Issues such as ensuring reliable power, cooling, and network connectivity all lie with them.

The customer just has to manage their own equipment. More specifically, the customer just needs to arrange for their equipment to be managed. They can delegate this to service providers. In fact, a colocation vendor in Dallas could probably deal with most, if not all, of it.

Challenges of colocation in Dallas

The main challenges of colocation in Dallas are:

  • Major variations in the local market
  • High demand for specialist staff
  • Disaster recovery

Here is a closer look at each of these points.

Major variations in the local market

Different colocation vendors in Dallas will have different offerings. The most obvious variation will be the tier. Even vendors within the same tier can, however, be meaningfully different from each other. For example, one key point of difference is the proximity to network hubs and hence the extent to which they can be optimized for low-latency connections. This means that businesses have to evaluate potential colocation vendors in Dallas very carefully.

High demand for specialist staff

Businesses in Dallas are unlikely to have any difficulty recruiting general IT staff or hiring vendors/contractors to perform standard tasks. If, however, you want in-depth customizations and/or very niche services, then you may have a challenge. With that said, Dallas is just a short flight from the tech hub of San Francisco. Whatever help a business might need, it can probably be found there.

Disaster recovery

Dallas has the usual considerations of a city. While it’s reasonably safe from human threats, security does still have to be a concern. On a day-to-day level, however, accessibility is likely to be the more pressing consideration due to traffic (vehicular and pedestrian).

In terms of climate, Dallas has a pleasant climate from fall through spring but the summer heat can be extreme so effective cooling is a must. The city is also prone to electrical and hail storms with occasional tornados. These are most frequent in spring and then fall.

Colocation in Dallas

If you are looking for colocation solutions in Dallas, DataBank is a great option. With seven state-of-the-art data centers located throughout the Dallas metro, DataBank has over 300,490 square feet of raised flooring and 33.3MW critical IT load. Learn more about DataBank’s Dallas data centers.

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