Data Centers in Little Rock

Little Rock – Central U.S. Colocation Value

Little Rock offers a compelling colocation environment for businesses prioritizing cost efficiency and geographic reach into the central United States. Its low power costs and favorable tax incentives create a strong financial case for deploying disaster recovery sites or serving regional end-users. This market is ideal for enterprises that require a stable, low-risk operational base without the high costs of primary coastal hubs.

Little Rock: At A Glance

Network & Connectivity Ecosystem

Little Rock provides a practical connectivity hub for central Arkansas and surrounding regions, supported by a mix of regional and national carriers.

Carrier Density & Carrier Neutrality: With access to over 5 data center providers, the market offers sufficient carrier diversity for most enterprise needs as of September 2025. Facilities are typically carrier-neutral, allowing flexible network configurations.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Little Rock as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated circuits to the primary interconnection hub in Dallas.

Internet Exchange Points (IXPs): Public peering is limited within Little Rock. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through major exchange points in Dallas.

Bare Metal: Bare metal server options are available through providers focused on secondary markets, offering solutions for companies that require dedicated physical hardware. Options include providers like Hivelocity and ColoCrossing.

Power Analysis

Arkansas offers one of the most attractive power cost structures in the United States, making it a key advantage for the Little Rock market.

Average Cost Of Power: Industrial electricity rates average approximately $0.07/kWh as of 2024. This low cost provides a significant operational expense advantage for compute-heavy workloads compared to more expensive coastal markets.

Power Grid Reliability: The electrical grid serving the Little Rock area is well-engineered, with power for major data center facilities typically supplied by redundant substations. The energy mix is led by natural gas (38%), with significant contributions from coal, nuclear, and renewables as of 2024.

Market Access, Business & Tax Climate

Little Rock serves as an economic anchor for Arkansas, providing a strategic location with a supportive business environment for data center investment.

Proximity To Key Business Districts: Data centers in the area provide low-latency connectivity to downtown Little Rock, the state's government offices, healthcare systems, and the region's financial and technology sectors.

Regional Market Reach: From Little Rock, organizations can effectively serve customers across Arkansas, Louisiana, Oklahoma, Missouri, and parts of Texas and Tennessee. Its central location makes it an efficient distribution point for digital services and content.

Tax Advantage For Data Centers: Arkansas provides a significant sales and use tax exemption on the purchase of data center equipment, software, and electricity. This incentive directly reduces the capital and operational costs of building and maintaining a data center presence in the state.

Natural Disaster Risk

Little Rock 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 primary risks are weather-related and do not include major seismic or coastal threats. Key hazards for consideration include tornadoes, severe wind, hail, winter weather, and drought.