Data Centers in Arkansas

Arkansas – Low-Cost Power in a Central US Hub

Arkansas is a compelling market for companies needing a resilient, low-cost data center presence in the central United States. Its combination of highly competitive power rates and significant tax incentives delivers a lower total cost of ownership for production and disaster recovery workloads. This makes Arkansas a strategic choice for businesses looking to optimize operational expenses without compromising on essential infrastructure.

Arkansas: At A Glance

Network & Connectivity Ecosystem

Arkansas provides a reliable connectivity environment for businesses that do not require ultra-low latency access to the largest global peering hubs. The state is well-positioned for serving the central and southern United States.

Carrier Density & Carrier Neutrality With 5 data center facilities as of September 2025, the market offers access to a range of regional and national carriers. While not as dense as primary markets, carrier-neutral facilities in cities like Little Rock provide sufficient options for redundant network architectures.

Direct Cloud On-Ramps There are no native public cloud on-ramps within Arkansas. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure via the nearest major interconnection hub, primarily Dallas, Texas. High-bandwidth private connectivity is readily available through network provider partners.

Internet Exchange Points (IXPs) Public peering is limited within the state. Most network traffic is exchanged through private peering arrangements within local data centers or routed through major hubs like Dallas or Memphis.

Bare Metal Bare metal server capacity is available, often provided by regional colocation operators. For larger deployments, providers like Hivelocity can service the region from nearby edge locations.

Power Analysis

Arkansas stands out for its exceptionally low power costs and a reliable, diverse energy grid, making it highly attractive for power-intensive computing.

Average Cost Of Power Industrial electricity rates are approximately $0.07/kWh as of 2024, placing Arkansas among the most cost-effective states in the US for data center operations. This significant cost advantage directly reduces operational expenditures for high-density deployments.

Power Grid Reliability The state's power grid is well-engineered, drawing from a balanced mix of natural gas, nuclear, coal, and renewable sources. Major data center corridors are supported by resilient infrastructure designed to maintain uptime for critical facilities.

Market Access, Business & Tax Climate

Arkansas offers a business-friendly environment, central location, and impactful financial incentives that create a compelling case for data center investment.

Proximity To Key Business Districts Data centers in the state, particularly around Little Rock, provide low-latency access to the state's primary economic centers, including government, healthcare, and logistics industries. This supports local enterprise and digital service delivery.

Regional Market Reach From its central location, Arkansas can effectively serve a broad geographic area encompassing the lower Midwest and the South. It is a strong location for disaster recovery sites for businesses in Dallas, Houston, Nashville, and Atlanta.

Tax Advantage For Data Centers Arkansas offers a targeted sales and use tax exemption on data center equipment, software, and electricity. This incentive significantly lowers the upfront capital investment and ongoing operational costs associated with building and running a data center.

Natural Disaster Risk

Arkansas has a Moderate risk profile, with a FEMA National Risk Index score of 64.08 out of 100 as of September 2025. The primary threats are atmospheric, and the state has minimal exposure to major seismic or coastal events.

Key risks include tornadoes, severe thunderstorms with hail and straight-line winds, river flooding, and winter weather. Other notable risks are drought and heatwaves. Facility selection and construction standards are engineered to mitigate the impact of these common regional hazards.