Data Centers in Alabama
8 locations found
- 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
Southern Edge Data Center
1809 Hillyer Robinson Industrial Parkway, Anniston
- DB
DC BLOX HSV-1
333 Diamond Drive Northwest, Huntsville
- SH
Simple Helix Huntsville
165 West Park Loop Northwest, Huntsville
- RS
Retirement Systems of Alabama Montgomery
445 Dexter Avenue, Montgomery
- A
AUBix Auburn
1571 West Samford Avenue, Auburn
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Explore Markets in Alabama
Alabama – Cost-Effective & Resilient Infrastructure
Alabama offers a compelling market for businesses prioritizing low operating costs, favorable tax incentives, and a strategic position for serving the Southeastern United States. Its combination of affordable power and a moderate natural disaster risk profile makes it a strong contender for secondary deployments, disaster recovery sites, and latency-sensitive applications targeting regional end-users. This market ensures operational resilience without the high costs of primary coastal hubs.
Alabama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity suitable for most enterprise and DR workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hub is Atlanta; access via private network extensions. |
| Power Cost | ≈$0.07/kWh – as of Midyear 2025 | Significantly below the U.S. national average for industrial power. |
| Disaster Risk | Moderate (44.00 NRI Score) – as of September 2025 | Primary risks are atmospheric; located outside major earthquake zones. |
| Tax Incentives | Yes | Data center-specific property and sales tax abatements are available. |
| Sales Tax | 4.00% (State) – as of Midyear 2025 | Local taxes may apply; some equipment may be exempt. |
Network & Connectivity Ecosystem
Alabama's connectivity landscape is best suited for workloads that require reliable regional access rather than direct, ultra-low latency connections to global cloud platforms.
Carrier Density & Carrier Neutrality Alabama has over 7 unique network providers operating within its data centers as of September 2025. While not as dense as primary markets, this provides sufficient carrier diversity for enterprise redundancy, with facilities offering neutral access to national and regional networks.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Alabama as of September 2025. Businesses requiring dedicated cloud access connect to providers in the nearest major hub, Atlanta, via private network interconnects, dedicated fiber, or wavelength services.
Internet Exchange Points (IXPs) Public peering is limited within the state. Most network peering for Alabama-based infrastructure is handled privately between carriers or routed through major regional exchanges in Atlanta, enhancing connectivity to the broader internet.
Bare Metal Bare metal server capacity is available in Alabama, providing dedicated, high-performance computing resources. Providers such as Hivelocity offer solutions out of regional data centers, enabling businesses to deploy hardware without capital expenditure.
Power Analysis
Alabama stands out for its highly competitive power costs and a reliable grid, making it a financially attractive location for power-intensive compute operations.
Average Cost Of Power The average industrial electricity rate is approximately $0.07/kWh as of Midyear 2025. This low cost provides a significant operational expense advantage compared to most other U.S. data center markets.
Power Grid Reliability The power grid is well-engineered and stable, particularly in the industrial parks and commercial zones where data centers are sited. Major facilities are typically supported by redundant utility feeds and multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Alabama's business environment offers strategic geographic reach and significant financial incentives for data center operators and tenants.
Proximity To Key Business Districts Data centers in Alabama are strategically located to serve key economic hubs like Birmingham (finance, healthcare), Huntsville (aerospace, technology, federal government), and Montgomery (state government). This proximity supports low-latency performance for local and state-level digital services.
Regional Market Reach From a central position in the Southeastern U.S., Alabama can effectively serve a large population across Georgia, Florida, Tennessee, and Mississippi. It is an ideal location for disaster recovery sites for businesses in hurricane-prone coastal areas.
Tax Advantage For Data Centers Alabama provides specific tax incentives that directly lower the cost of building and operating data centers. Qualifying projects and their tenants can receive abatements on both property taxes and sales/use taxes on equipment, reducing upfront capital investment and ongoing operational expenses.
Natural Disaster Risk
Alabama has a Moderate natural disaster risk profile, with a FEMA National Risk Index score of 44.00 out of 100 as of September 2025. The primary risks are weather-related and manageable with standard infrastructure hardening.
Key environmental risks include tornadoes, hurricanes (primarily in southern counties), strong winds, hail, and lightning. The state has a very low risk of earthquakes and is not exposed to risks like tsunamis or volcanic activity.
