Data Centers in Fayetteville
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Fayetteville, Arkansas, United States – Cost-Effective Edge Colocation
Fayetteville offers a compelling secondary market for businesses prioritizing low power costs and a favorable tax environment. This location is ideal for disaster recovery sites, edge computing deployments, and workloads that require a stable, low-cost operational base rather than dense, low-latency interconnection. Its strategic position offers a solid foundation for companies serving the central United States.
Fayetteville, Arkansas, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity for most business needs; not a primary interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Dallas; private network extensions are available. |
| Power Cost | ≈$0.07/kWh, as of 2024 | Significantly below the national average, making it ideal for high-density deployments. |
| Disaster Risk | Moderate (64.08), as of September 2025 | Primary risks are atmospheric; lacks major seismic or coastal storm exposure. |
| Tax Incentives | Yes | State programs provide sales and use tax exemptions on qualifying data center equipment. |
| Sales Tax | 6.50%, as of 2025 | Arkansas state sales tax. |
Network & Connectivity Ecosystem
Fayetteville is a developing edge market, offering focused connectivity options rather than the dense ecosystems found in primary hubs.
Carrier Density & Carrier Neutrality: The market contains a focused set of local and regional providers, with at least one carrier-neutral facility available as of September 2025. This environment is well-suited for deployments that do not require extensive multi-carrier peering.
Direct Cloud On-Ramps: There are no public cloud on-ramps within Fayetteville. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network providers offering private connectivity to the nearest major hub, Dallas.
Internet Exchange Points (IXPs): Public peering is limited in Fayetteville. Most network interconnection is handled privately or routed through major regional exchanges in Dallas, which serves as the primary peering point for the region.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers such as ColoCrossing and Hivelocity can serve the region, offering customized server configurations.
Power Analysis
Arkansas provides a significant operational advantage through its low-cost and reliable power infrastructure.
Average Cost Of Power: The industrial electricity rate is approximately $0.07/kWh as of 2024, which is well below the U.S. average. This low cost directly reduces operational expenditures for compute-intensive workloads and high-density rack configurations.
Power Grid Reliability: The regional power grid is well-engineered, drawing from a diverse fuel mix led by natural gas (38%), with support from coal, nuclear, and renewables. This balanced approach helps ensure grid stability for mission-critical operations.
Market Access, Business & Tax Climate
Fayetteville offers strategic access to the growing Northwest Arkansas economic region and a highly competitive business environment.
Proximity To Key Business Districts: Data centers in Fayetteville serve the rapidly expanding commercial centers of Northwest Arkansas, including the headquarters of major retail corporations, logistics firms, and the University of Arkansas. This proximity is ideal for supporting local enterprise and research computing.
Regional Market Reach: The location effectively serves as an edge or disaster recovery site for businesses in Arkansas, southern Missouri, eastern Oklahoma, and western Tennessee. It provides a strategic foothold for reaching consumers and businesses throughout the central U.S.
Tax Advantage For Data Centers: Arkansas offers powerful tax incentives that reduce the total cost of ownership for data center operators. The state provides a sales and use tax exemption on the purchase of qualifying data center equipment, software, and electricity, lowering upfront capital investment.
Natural Disaster Risk
Fayetteville has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 64.08 out of 100 as of September 2025. The location avoids the primary threats of earthquakes and coastal storms common in other regions. Key risks are primarily atmospheric and include tornadoes, hail, straight-line winds, riverine flooding, and winter weather.
