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Data Centers in Little Rock

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Little Rock – Central, Cost-Effective Colocation

Little Rock provides a compelling alternative to primary data center markets, especially for organizations prioritizing cost control and disaster recovery. Its central U.S. location, very low power costs, and moderate risk profile make it a strategic choice for secondary deployments and serving regional customers without the expense of a coastal hub. This market delivers reliable infrastructure that directly supports uptime and lowers operational spending.

Little Rock: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional connectivity; not a primary national interconnection point.
Direct Cloud On-Ramps0 – as of September 2025The nearest major cloud hub is Dallas; private connections are available.
Power Cost$0.07/kWh – as of 2024Significantly below the national average, offering major operational savings.
Disaster RiskModerate (FEMA NRI: 64.08)Primary risks are atmospheric (storms, tornadoes); manageable with proper facility design.
Tax IncentivesYesState offers sales and use tax exemptions on qualifying data center equipment.
Sales Tax6.50% – as of Midyear 2025Arkansas state sales tax rate.

Network & Connectivity Ecosystem

Little Rock is a solid regional connectivity hub, well-suited for serving central U.S. markets. While not a top-tier interconnection point like Dallas or Chicago, its infrastructure is more than adequate for enterprise colocation and disaster recovery needs.

Carrier Density & Carrier Neutrality: The market contains 4 data centers with service from over 5 unique network carriers, as of September 2025. Carrier-neutral facilities provide options for creating redundant network paths.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Little Rock data centers, as of September 2025. Secure, low-latency connections to all major cloud providers are established via private network extensions to the Dallas metro, a primary interconnection hub.

Internet Exchange Points (IXPs): Public peering is limited within the market. Most network traffic is exchanged through private peering arrangements or routed via upstream providers in major hubs like Dallas.

Bare Metal: Bare metal server deployments are readily available from providers. Options exist from global suppliers such as Hivelocity that can service the region.

Power Analysis

Arkansas offers one of the most attractive power cost structures in the United States, making Little Rock a prime location for workloads sensitive to electricity pricing.

Average Cost Of Power: Industrial electricity rates average around $0.07/kWh, as of 2024. This price is substantially lower than most U.S. markets and translates directly to lower monthly operational costs. The state's power mix is led by natural gas (38%), with significant contributions from coal, nuclear, and renewables, ensuring a diverse fuel supply.

Power Grid Reliability: The regional power grid is well-engineered and stable. Data centers in the area are typically supported by redundant power feeds from multiple substations, providing the high level of reliability required for critical IT infrastructure.

Market Access, Business & Tax Climate

Little Rock offers a business-friendly environment with a strategic location and favorable financial incentives for technology infrastructure investment.

Proximity To Key Business Districts: Data centers in Little Rock are situated to serve the state's capital, providing low-latency access for government, healthcare, logistics, and financial services industries concentrated in the metro area.

Regional Market Reach: From Little Rock, organizations can effectively serve customers across Arkansas, Louisiana, Mississippi, Oklahoma, and southern Missouri. Its central location makes it an effective distribution point for digital services.

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 upfront capital expenditure required to build or expand a data center footprint.

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 atmospheric and geological, requiring facility engineering to focus on structural resilience.

Key risks include tornadoes, severe thunderstorms (strong wind, hail, lightning), riverine flooding, and ice storms. The region also has a recognized earthquake risk associated with the New Madrid Seismic Zone, though less severe than in areas to the east. Heat waves and drought are also factors. The market is free from direct threats of hurricanes or coastal flooding.

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