Data Centers in Alabama
10 locations found
- V
Verizon BIRWAL
2705 6th Avenue South, Birmingham
- ST
Southern Telecom Birmingham
600 18th Street North, Birmingham
- DB
DC BLOX BHM-1
433 6th Street South, Birmingham
- L
Lumen Birmingham
401 6th Avenue South, Birmingham
- F
Southern Edge Data Center
1809 Hillyer Robinson Industrial Parkway, Anniston
- V
Verizon MNTGAL
525 North Court Street, Montgomery
- RS
Retirement Systems of Alabama Montgomery
445 Dexter Avenue, Montgomery
- A
AUBix Auburn
1571 West Samford Avenue, Auburn
- DB
DC BLOX HSV-1
333 Diamond Drive Northwest, Huntsville
- SH
Simple Helix Huntsville
165 West Park Loop Northwest, Huntsville
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Explore Markets in Alabama
Alabama – Low-Cost Power & Business-Friendly Infrastructure
Executive Summary
Alabama is a compelling data center market for businesses prioritizing low operational costs and disaster recovery. The state's attractive power pricing and significant tax incentives create a favorable environment for reducing total cost of ownership. This makes it a strong choice for secondary or tertiary deployments supporting primary sites in more expensive, high-risk hubs like Florida or the Gulf Coast.
Alabama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but less dense than major national hubs. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Connect via the nearest major hub, Atlanta, using private network extensions. |
| Power Cost | ≈$0.07/kWh (industrial) | One of the most competitive rates in the United States, as of September 2025. |
| Disaster Risk | Moderate (NRI Score: 44.00) | Primary risks are atmospheric; seismic and coastal flood risks are very low. |
| Tax Incentives | Yes | Specific property and sales tax abatements available for qualifying data centers. |
| Sales Tax | 4.00% | Alabama state sales tax, as of Midyear 2025. |
Network & Connectivity Ecosystem
Alabama offers a capable, though not top-tier, connectivity ecosystem suitable for regional enterprise and disaster recovery workloads. The market is defined by its proximity to the major interconnection hub of Atlanta.
Carrier Density & Carrier Neutrality Alabama's data centers provide access to over 7 unique network providers, as of September 2025. Carrier-neutral facilities in Birmingham and Huntsville are the primary hubs for interconnection, offering diverse fiber routes out of the state.
Direct Cloud On-Ramps There are no direct, in-state public cloud on-ramps from major providers, as of September 2025. All cloud access is routed through the nearest primary hub in Atlanta, Georgia. Businesses can establish private, high-speed connections to all major clouds via network provider extensions or dedicated wavelength services.
Internet Exchange Points (IXPs) Public peering is limited within Alabama. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through major IXPs in Atlanta for access to national and international networks.
Bare Metal Bare metal server capacity is available from providers serving the Southeastern US. Companies like Hivelocity offer dedicated server solutions that can be deployed in regional data centers, providing a low-latency option for local users.
Power Analysis
Power is a significant competitive advantage for data center operations in Alabama.
Average Cost Of Power The average industrial electricity cost is approximately $0.07/kWh, as of September 2025. This rate is substantially lower than the national average, making the state highly attractive for power-intensive applications and high-density computing.
Power Grid Reliability The power grid is well-engineered to support significant industrial and manufacturing loads across the state. Data centers in primary markets like Birmingham and Huntsville typically have access to redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Alabama's pro-business stance extends directly to digital infrastructure, creating a favorable climate for data center investment and tenancy.
Proximity To Key Business Districts Data centers are strategically located to serve the state's primary economic zones. This includes the financial and healthcare sectors in Birmingham and the aerospace, defense, and technology corridor in Huntsville, home to NASA's Marshall Space Flight Center.
Regional Market Reach From a latency perspective, Alabama can effectively serve the entire Southeastern United States. It is an excellent location for a disaster recovery site for businesses operating in Atlanta, Nashville, or the Gulf Coast cities of New Orleans and Mobile.
Tax Advantage For Data Centers The state offers substantial tax incentives that directly lower capital and operational expenses. Qualifying data center operators and their tenants can receive abatements on both property taxes and sales taxes on equipment purchases, improving the long-term financial model for deployments.
Natural Disaster Risk
Alabama has a moderate natural disaster risk profile, with primary threats coming from atmospheric events. The FEMA National Risk Index score is 44.00, classifying it as "Very Low" relative to all US counties but moderate when considering common data center locations.
Key risks, as of September 2025, include:
- Tornado
- Hurricane (primarily wind and rain from inland-moving storms)
- Strong Wind
- Hail
- Lightning
- Ice Storm
