Data Centers in Fayetteville
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Fayetteville – Cost-Effective Colocation in Central USA
Fayetteville offers a compelling data center market for businesses prioritizing low operational costs and a stable risk profile. Its location provides a strategic option for disaster recovery and serving central US markets, balancing affordable power with developing connectivity.
Fayetteville: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional connectivity with access to national networks. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Dallas; private network extensions are available. |
| Power Cost | ≈$0.07/kWh, as of 2024 | Significantly below the national average, a key advantage for opex. |
| Disaster Risk | Moderate (Score: 64.08), as of September 2025 | Primary risks are atmospheric; located outside major hurricane zones. |
| Tax Incentives | Yes | Includes sales and use tax exemptions on qualifying data center equipment. |
| Sales Tax | 6.50%, as of 2025 | Arkansas state sales tax rate. |
Network & Connectivity Ecosystem
Fayetteville is an emerging market focused on regional enterprise needs. The connectivity ecosystem is functional for standard business operations, though direct, low-latency connections to global hubs require transit to larger markets.
Carrier Density & Carrier Neutrality: The market is served by at least 1 provider, as of September 2025. Carrier-neutral options offer access to regional and national networks for redundancy and service diversity.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers as of September 2025. Businesses connect to cloud providers via the nearest primary hub in Dallas through private network interconnects or wavelength services.
Internet Exchange Points (IXPs): Public peering is limited within Fayetteville. Most network peering occurs privately between carriers or is routed through major exchange points in Dallas.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers like Hivelocity can serve the region, offering an alternative to virtualized environments.
Power Analysis
Arkansas offers one of the most competitive power markets in the United States, making it highly attractive for energy-intensive operations like data centers.
Average Cost Of Power: Industrial power costs are approximately $0.07/kWh, as of 2024, a rate well below many primary data center markets. This significant cost advantage directly reduces the total cost of ownership for colocation and large-scale deployments. The grid mix is led by natural gas (38%), with the remainder from coal, nuclear, and renewables as of 2024.
Power Grid Reliability: The regional power grid is well-engineered to support industrial and commercial needs. Data center facilities typically secure power from redundant sources to ensure high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Fayetteville provides a stable and business-friendly environment, anchored by major corporate headquarters and a growing regional economy in Northwest Arkansas.
Proximity To Key Business Districts: Data centers in the area serve the corporate headquarters of major retail, logistics, and food processing companies located in the Fayetteville-Bentonville corridor. This proximity is ideal for primary production workloads and disaster recovery sites.
Regional Market Reach: The market is strategically positioned to serve businesses across Arkansas, Oklahoma, Missouri, and Kansas. Its central location offers a viable option for applications that require low latency to end-users throughout the mid-South.
Tax Advantage For Data Centers: Arkansas provides a significant tax incentive for data center operators and tenants. The state offers a sales and use tax exemption on the purchase of qualifying equipment, software, and services, which lowers the initial capital investment required to build or expand a facility.
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 area is not exposed to major coastal threats like hurricanes, but it is susceptible to specific atmospheric and geological hazards. Key risks include tornadoes, drought, strong wind, hail, riverine flooding, and earthquakes.
