Data Centers in Montgomery
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Montgomery – Cost-Effective & Resilient Infrastructure
Executive Summary
Montgomery is a strong choice for organizations prioritizing operational cost and resilience over hyper-dense connectivity. Its attractive power pricing and substantial tax incentives create a compelling financial case for disaster recovery sites and workloads serving the Southeastern United States. This market allows businesses to secure reliable infrastructure while significantly lowering their total cost of ownership.
Montgomery: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but lacks the density of a primary Tier 1 market. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest major cloud hub is Atlanta. Private network connections are available. |
| Power Cost | ≈$0.07/kWh, as of September 2025 | Significantly below the US average, a key advantage for high-density compute. |
| Disaster Risk | Moderate (44.00 score), as of September 2025 | Risks are mainly weather-related; no major seismic or coastal flood threats. |
| Tax Incentives | Yes | Property and sales tax abatements for qualifying data centers and their tenants. |
| Sales Tax | 4.00%, as of July 2025 | Some DC-related equipment and software purchases may qualify for exemption. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Montgomery is a developing colocation market with access to over 3 providers, as of September 2025. While carrier choice is not as extensive as in primary hubs, the available networks provide reliable regional and national connectivity, often routing through nearby Atlanta for long-haul transport.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Montgomery, enabling access to 0 cloud regions locally. The nearest major interconnection hub is Atlanta, which provides dedicated, low-latency access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via private network extensions.
Internet Exchange Points (IXPs) Public peering is limited within Montgomery. Most network peering is conducted privately between carriers or routed through the dense ecosystem of Internet Exchanges in Atlanta.
Bare Metal Bare metal server availability is standard in Montgomery, offered by national providers who can deploy hardware in regional data centers. Providers like Hivelocity and ColoCrossing can service deployments in secondary markets, offering an alternative to traditional colocation or cloud instances.
Power Analysis
Average Cost Of Power The average industrial electricity cost in the Montgomery area is approximately $0.07/kWh, as of September 2025. This rate is among the lowest in the nation and provides a significant operational cost advantage for any compute-intensive workload, from enterprise applications to AI training clusters.
Power Grid Reliability The regional power grid is well-engineered and reliable. Data centers are typically located in commercial zones supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Montgomery are positioned to serve the state capital's government agencies, Maxwell Air Force Base, and a growing manufacturing corridor. This proximity provides low-latency connectivity for public sector, defense, and industrial applications.
Regional Market Reach From Montgomery, businesses can effectively deliver services to end-users across Alabama, the Florida Panhandle, and parts of Georgia and Mississippi. This makes it a strategic location for edge computing or as a disaster recovery site for operations based in Atlanta.
Tax Advantage For Data Centers Alabama offers significant tax incentives that lower the cost of building and operating a data center. Qualifying projects and their tenants can receive abatements on both property and sales taxes, reducing capital expenditures and ongoing operational costs.
Natural Disaster Risk
Montgomery has a moderate risk profile, with a FEMA National Risk Index score of 44.00, as of September 2025. The area is not exposed to significant seismic, coastal flooding, or landslide activity.
The primary environmental risks are atmospheric. These include tornadoes, hurricanes (presenting as inland wind and rain events), strong winds, hail, and lightning. The region also faces occasional risks from heat waves and ice storms.
