Colorado-based colocation and wholesale data center provider H5 Data Centers recently announced that it would be expanding its data center in downtown San Antonio. Located at 100 Taylor St., the edge data center will add new colocation space and increase power capacity. Specifically, the tier III expansion of turnkey colocation space will enable up to 340 more cabinets and 1.5 MWs of additional UPS capacity.

According to statements released by the company, five new communications providers have deployed infrastructure at the data center campus this year alone. Representing a key point of interconnection in the San Antonio and Austin metropolitan areas, the data center offers access to more than 35 communications carriers in one of the safest data center locations in the U.S.

Originally built in 1940, the property incorporates more than 50,000 square feet of San Antonio industrial and data center space and has been owned by H5 Data Centers since 2018 following an acquisition from the Texas ISP Taylor Telecom. Ranking among the leading data center operators in the country, H5 manages more than 3 million square feet of data center facilities.

“International carriers, regional Internet service providers, and enterprises continue to add to the growing San Antonio interconnection ecosystem,” said Josh Simms, founder and CEO of H5 Data Centers. “Given San Antonio’s strategic position along key long-haul fiber routes and location in south Texas, our data center is well-positioned for continued IT infrastructure services growth, serving the growing demand for colocation space and services in San Antonio and Austin.”

Despite San Antonio being one of the fastest-growing U.S. data center markets since 2012, supply continues to lag behind demand. According to recent reports by CBRE, the vacancy for data center space in Austin and San Antonio dropped below 2% during the first six months of 2023. Additionally, although a vacancy rate of 1.7% was an uptick from 1.3% the year before, it nevertheless marked a full year of more than 98% occupancy and placed the market second in the country for lowest availability. Northern Virginia took the top spot with a vacancy rate of less than 1%.

In September, data center projects under construction in the central Texas market totaled nearly 90 megawatts of capacity, which represented more than half of the existing inventory in Austin and San Antonio. One of the largest investors in the sector here has been Microsoft — which, according to the San Antonio Report, has spent more than $1.2 billion on data center projects in both Bexar and Medina counties since 2015.

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