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Data Centers in Little Rock

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Little Rock – Resilient Infrastructure for the Mid-South

Executive Summary

Little Rock provides a sturdy alternative for enterprises escaping the overhead of coastal markets while maintaining reliable connectivity across the central United States. It is a purpose-built destination for disaster recovery and regional edge deployments where uptime and fiscal efficiency drive success. This market offers a stable, low-risk environment that secures critical data for the Mid-South.

Little Rock: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional performance with reliable carrier diversity.
Direct Cloud On-Ramps0 – as of December 2025Nearest major on-ramp hubs are Dallas and Memphis.
Power Cost$0.07/kWh, as of December 2025Highly competitive industrial rates below national averages.
Disaster RiskModerate (64.08), as of December 2025Low overall vulnerability with localized seasonal weather risks.
Tax IncentivesYesSales and use tax exemptions for qualified equipment.
Sales Tax6.50% Sales Tax, as of December 2025Standard state rate applicable to general purchases.

Network & Connectivity Ecosystem

Little Rock functions as a critical junction for fiber traffic moving through the south–central corridor. While it is not a primary global gateway, it offers the stability required for regional distribution and secure backup.

Carrier Density & Carrier Neutrality: Carrier count: over 5 as of December 2025. The market features a stable mix of local fiber providers and national backbone carriers ensuring redundant paths for enterprise traffic.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of December 2025. No native cloud on-ramps exist locally. Enterprises typically access AWS or Microsoft Azure via private network interfaces or high-speed transport to Dallas.

Internet Exchange Points (IXPs): Most peering occurs privately or via connections to major regional hubs like Dallas. This setup keeps local traffic efficient while relying on larger exchanges for national reach.

Bare Metal: Dedicated server and bare metal solutions are available through providers such as Hivelocity and regional facility operators as of December 2025.

Power Analysis

Energy availability and cost remain the strongest selling points for the Arkansas market, particularly for high-density colocation.

Average Cost Of Power: Industrial electricity is approximately $0.07/kWh as of December 2025. These rates provide a significant operational advantage for power-hungry compute clusters compared to the national average.

Power Grid Reliability: The local grid is supported by a diverse fuel mix including natural gas, nuclear, and renewables. The infrastructure uses well-engineered distribution networks to ensure consistent industrial uptime for the local data center corridor.

Market Access, Business & Tax Climate

The business environment in Little Rock is geared for long-term retention and infrastructure growth, supported by a favorable legislative stance.

Proximity To Key Business Districts: Facilities are strategically positioned near the West Little Rock and downtown corridors. This placement serves the healthcare, government, and financial services sectors that anchor the state capital.

Regional Market Reach: Little Rock provides an ideal central point for serving the entire Mid-South. It offers low-latency paths to the rest of Arkansas, northern Louisiana, and western Tennessee.

Tax Advantage For Data Centers: Arkansas offers specific sales and use tax exemptions for qualifying data center hardware and software purchases. This financial benefit directly reduces the total cost of ownership for significant infrastructure deployments.

Natural Disaster Risk

Little Rock maintains a Moderate risk profile with a FEMA NRI score of 64.08 as of December 2025. The geography is notably stable regarding seismic activity and is entirely exempt from coastal threats.

Primary Natural Hazards: Tornadoes, Hail, Strong Wind, Lightning, and Ice Storms.

Risk Summary: While the area faces seasonal weather challenges typical of the interior United States, the lack of earthquake or hurricane risk makes it a sturdy choice for primary production or out-of-region backup sites. Risks such as river flooding are well-managed through site-specific elevation and drainage engineering. Minor risks like wildfire or drought are noted but do not typically impact hardened facility operations.

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