Data Centers in Montgomery
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Montgomery, Alabama – Resilient Infrastructure, Low Costs
Montgomery, Alabama is a strong choice for businesses seeking a cost-effective and low-risk location for their secondary data center or disaster recovery site. Its combination of very low power prices and significant tax incentives provides a predictable operational cost model. This market is ideal for workloads supporting regional operations across the Southeastern United States.
Montgomery, Alabama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; not a primary national fiber hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hub is Atlanta. Private network extensions available. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Significantly below the US national average for industrial power. |
| Disaster Risk | Moderate (Score: 44.00) – as of September 2025 | Main risks are severe storms, including tornadoes and hurricanes. |
| Tax Incentives | Yes | Abatements on property and sales tax for qualifying data centers. |
| Sales Tax | 4.00% (State) – as of Midyear 2025 | Local taxes may apply. Some equipment may be exempt under incentives. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
The market has a focused carrier presence, with 3 providers active in the primary colocation facility as of September 2025. This supports carrier-neutral interconnection, though the ecosystem is smaller than in primary hubs.
Direct Cloud On-Ramps
As of September 2025, there are no direct public cloud on-ramps located within Montgomery. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network extensions to the nearest primary hub, Atlanta. Private line and wavelength services offer secure, high-performance connectivity.
Internet Exchange Points (IXPs)
There are no public Internet Exchange Points (IXPs) located in Montgomery. Peering is typically handled privately between carriers or routed through the major exchange points in Atlanta.
Bare Metal
Bare metal server solutions are available in the region, often deployed in nearby hubs like Atlanta. Providers such as Hivelocity can deliver dedicated compute to support workloads that require direct hardware access.
Power Analysis
Average Cost Of Power
The average industrial electricity cost in Montgomery is approximately $0.07/kWh as of September 2025. This rate is highly competitive and well below the U.S. national average, offering significant operational savings on high-density deployments.
Power Grid Reliability
The power grid serving the Montgomery area is stable and well-maintained. Data centers in the region typically source power from redundant substations to ensure high levels of uptime and service continuity.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Montgomery provide low-latency connectivity to state government agencies, Maxwell Air Force Base, and regional manufacturing and automotive industries. This proximity supports applications sensitive to network delay.
Regional Market Reach
Montgomery serves as an effective digital hub for central and southern Alabama, the Florida panhandle, and western Georgia. It provides a strategic location for content delivery and application hosting for this tristate region.
Tax Advantage For Data Centers
Alabama provides substantial data center-specific tax incentives. Qualifying projects can receive long-term abatements on both property taxes and sales taxes for IT equipment, significantly lowering the total cost of ownership.
Natural Disaster Risk
Montgomery 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 environmental threats are driven by severe weather events common to the Southeastern United States. Key risks include tornadoes, hurricanes (primarily wind and rain), strong wind, hail, and lightning.
