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Data Centers in Montgomery

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Montgomery, Alabama – Cost-Effective & Resilient Infrastructure

Montgomery offers a compelling alternative to major Southeastern hubs, providing significant cost advantages and a low-risk operational environment. This market is ideal for enterprises and service providers prioritizing budget stability and high uptime for their secondary or disaster recovery workloads. Its strategic location delivers reliable performance for serving regional end-users across the Gulf States.

Montgomery, Alabama: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, though not a primary international hub.
Direct Cloud On-Ramps0 – as of September 2025Access is primarily via the Atlanta hub through private network extensions.
Power Cost≈$0.07/kWh – as of September 2025Highly competitive industrial rates well below the national average.
Disaster RiskModerate (44.00) – as of September 2025Very low overall score with manageable, well-understood regional risks.
Tax IncentivesYesState and local property and sales tax abatements are available.
Sales Tax4.00% (State Rate) – as of September 2025Alabama state sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality As of September 2025, Montgomery is served by over 3 providers, offering a mix of regional and national networks. The market features carrier-neutral facilities that provide interconnection options suitable for enterprise and secondary disaster recovery sites.

Direct Cloud On-Ramps There are no direct, native cloud on-ramps within Montgomery data centers as of September 2025. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are achieved via private network links to the primary interconnection hub in Atlanta.

Internet Exchange Points (IXPs) Public peering is not established in Montgomery. The majority of network peering is conducted privately between carriers or routed through major exchange points in Atlanta, ensuring efficient traffic exchange for the region.

Bare Metal Bare metal server capacity is available in the region, typically through providers located in nearby major markets like Atlanta. Services from companies such as Hivelocity and ColoCrossing can provide dedicated compute resources to serve workloads in the Southeastern United States.

Power Analysis

Average Cost Of Power Industrial electricity costs in Montgomery are approximately $0.07/kWh as of September 2025, a figure significantly below the U.S. national average. This aggressive pricing creates a substantial long-term operational cost advantage for compute-intensive deployments.

Power Grid Reliability The power grid supporting the Montgomery area is well-engineered for reliability. Data centers typically have access to redundant power feeds from separate 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 significant government, military (Maxwell Air Force Base), and automotive manufacturing sectors. This proximity allows for low-latency support for critical state and industrial operations.

Regional Market Reach From Montgomery, digital services can effectively reach a broad geography across Alabama, Georgia, the Florida Panhandle, and Mississippi. It serves as a cost-effective location for delivering content and applications to millions of consumers in the Gulf Coast region.

Tax Advantage For Data Centers Alabama provides significant tax incentives that lower the total cost of ownership for data center investments. Qualifying projects can receive abatements on both property and sales/use taxes, directly reducing capital expenditures and ongoing operational costs.

Natural Disaster Risk

Montgomery has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 44.00 as of September 2025. The area is not prone to major seismic or coastal events, making it a resilient location for critical infrastructure.

The primary environmental risks to consider are atmospheric and weather-related, including:

  • Tornado
  • Hurricane (primarily wind and heavy rain from inland-moving storms)
  • Strong Wind
  • Hail
  • Lightning
  • Heat Wave
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