Data Centers in Fayetteville
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Fayetteville, Arkansas – Cost-Effective & Resilient Infrastructure
Executive Summary
Fayetteville, Arkansas is an emerging data center market ideal for businesses seeking cost-effective and resilient secondary or disaster recovery sites. Its extremely competitive power pricing and moderate disaster risk profile offer a stable operational environment. This market provides a strategic alternative to reduce total cost of ownership for workloads that can tolerate the latency to primary hubs like Dallas.
Fayetteville, Arkansas: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with reliable regional fiber connectivity to major hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Dallas; private network extensions are required for direct access. |
| Power Cost | $0.07/kWh – as of 2024 | Significantly below the U.S. average, making it very attractive for power-dense deployments. |
| Disaster Risk | Moderate (NRI Score: 64.08) – as of September 2025 | Primary risks include severe storms, but the area avoids most major coastal or seismic threats. |
| Tax Incentives | Yes | Data centers may qualify for a sales and use tax exemption on equipment purchases. |
| Sales Tax | 6.50% (State) – as of Midyear 2025 | Local taxes may apply, but specific exemptions for data centers can lower this burden. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market features 1 primary colocation provider as of September 2025. Connectivity is centered around regional and national carriers providing long-haul transport to major peering points.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Fayetteville, enabling access to 0 cloud regions locally. Businesses requiring dedicated cloud access must establish private network connections to providers in the nearest major hub, Dallas.
Internet Exchange Points (IXPs): Public peering is not available locally. Most network peering is conducted privately or through major internet exchanges in Dallas.
Bare Metal: Bare metal server options are available, often provisioned through providers like Hivelocity that can serve edge and secondary markets.
Power Analysis
Average Cost Of Power: The industrial electricity rate in Fayetteville is approximately $0.07/kWh as of 2024. This highly competitive rate provides a substantial operational cost advantage compared to most U.S. data center markets. This cost structure is a primary driver for choosing the region.
Power Grid Reliability: The regional power grid is reliable, supported by a diverse fuel mix led by natural gas, with significant contributions from nuclear, coal, and renewables. This diversity contributes to stable supply and predictable pricing for mission-critical facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Fayetteville serve the growing Northwest Arkansas corridor, which includes the headquarters of major retail and logistics corporations, as well as the University of Arkansas. This proximity supports local enterprise and research computing needs.
Regional Market Reach: The market is strategically positioned to provide low-latency services to Arkansas, southern Missouri, eastern Oklahoma, and western Tennessee. It serves as an effective disaster recovery location for businesses operating in Dallas, Kansas City, and St. Louis.
Tax Advantage For Data Centers: Arkansas offers compelling tax incentives for data center operators and tenants. The primary advantage is a sales and use tax exemption on qualifying equipment and software, which directly lowers the capital expenditure required for new builds and hardware refreshes.
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 hurricane, coastal flooding, or direct high-level seismic threats, making it a stable operational choice. Key risks to engineer for include tornadoes, ice storms, strong winds, hail, and riverine flooding.
