Data Centers in Arkansas

Arkansas – Cost-Effective & Central US Reach

Arkansas offers a compelling data center market for businesses prioritizing low operating costs and a central US location for disaster recovery or secondary operations. Its combination of affordable power and targeted tax incentives provides a strong financial advantage for compute-intensive deployments that need to serve the South and Midwest. This market is ideal for enterprises seeking to optimize budgets without compromising on regional accessibility.

Arkansas: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The state is served by at least 5 providers, as of September 2025. While not a top-tier interconnection hub, carrier-neutral facilities provide access to regional and national networks sufficient for most enterprise and disaster recovery needs.

Direct Cloud On-Ramps: Arkansas has 0 native cloud on-ramps, as of September 2025, meaning there are no direct, private connections to major cloud providers within the state. Businesses connect to cloud services via the nearest major hub, typically Dallas, using private network extensions like PNI or wavelength services.

Internet Exchange Points (IXPs): Public peering is limited within Arkansas. Most network interconnection occurs privately within colocation facilities or is routed through major exchange points in nearby metropolitan markets like Dallas or Memphis.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like ColoCrossing and others offer services in the region, often accessible from facilities in Little Rock.

Power Analysis

Average Cost Of Power: The average industrial electricity rate in Arkansas is approximately $0.07/kWh, as of 2024. This positions the state as a highly cost-effective location for power-intensive operations compared to national averages. The grid is primarily fueled by natural gas (38%), with the balance coming from a mix of coal, nuclear, and renewables.

Power Grid Reliability: The power grid supporting Arkansas's main commercial centers is well-engineered for reliability. Data centers typically have access to redundant power feeds and substation diversity to ensure high levels of uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Arkansas, particularly around Little Rock, serve the state's primary economic sectors, including logistics, food processing, and advanced manufacturing. This proximity allows local enterprises to implement low-latency hybrid IT and disaster recovery solutions.

Regional Market Reach: From its central location, Arkansas provides effective service delivery to a broad geographic area encompassing the South and Midwest. It is a strategic location for reaching markets like Dallas, Memphis, St. Louis, and Nashville with reasonable latency.

Tax Advantage For Data Centers: Arkansas offers a significant financial benefit through a sales and use tax exemption on data center equipment. This incentive directly reduces the capital expenditure required for new builds or hardware refreshes, making large-scale deployments more affordable.

Natural Disaster Risk

Arkansas has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 64.08, as of September 2025. The risk profile is driven by inland weather phenomena rather than coastal or major seismic threats.

Key risks include severe thunderstorms, tornadoes, hail, and strong winds. Other notable risks for the region include drought, heatwaves, and riverine flooding. Facility selection and construction standards are designed to mitigate the impact of these common weather events.