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Data Centers in Jacksonville

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Jacksonville – Strategic Hub for Florida & the Southeast

Executive Summary

Jacksonville is a compelling data center market for businesses requiring a strategic foothold in the Southeastern United States. The market's primary advantages are its extremely competitive power costs and significant, data center-specific tax incentives. This combination delivers a lower total cost of ownership, making Jacksonville a prime location for disaster recovery sites and primary infrastructure serving Florida and the greater Southeast region.

Jacksonville: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong connectivity for a regional hub, serving the Southeast US and subsea cable routes.
Direct Cloud On-Ramps0 – as of September 2025Access major clouds via private network extensions to hubs like Atlanta or Miami.
Power Cost$0.06/kWh (Industrial) – as of February 2024Significantly lower than the US average, driving value for high-density deployments.
Disaster RiskHigh (87.72) – as of September 2025Main risks are hurricane, tornado, and wildfire; thorough site due diligence is critical.
Tax IncentivesYes – as of September 2025State-level sales and ad valorem tax exemptions are available for qualifying data centers.
Sales Tax6.00% State Sales Tax – as of September 2025DC-specific exemptions can greatly reduce the tax burden on equipment purchases.

Network & Connectivity Ecosystem

Jacksonville's connectivity ecosystem is robust for a market of its size, providing reliable access to the Southeast and serving as a landing point for key subsea cables.

Carrier Density & Carrier Neutrality With over 15 unique network providers present as of September 2025, the market offers healthy competition. Carrier-neutral facilities provide access to a mix of global, national, and regional carriers for network redundancy and cost control.

Direct Cloud On-Ramps As of September 2025, there are no direct, in-market public cloud on-ramps from major providers. Secure, low-latency connections to AWS, Google Cloud, Microsoft Azure, and others are achieved via private network links to primary hubs in Atlanta or Miami.

Internet Exchange Points (IXPs) The Jacksonville Internet Exchange (JAX-IX) facilitates local traffic peering, which can reduce latency and lower transit costs for participating networks. Most large-scale peering, however, occurs in the larger regional hubs of Atlanta and Miami.

Bare Metal Bare metal server options are available in Jacksonville from various providers. Companies like Hivelocity offer dedicated server infrastructure for workloads requiring direct hardware access and consistent performance.

Power Analysis

Jacksonville stands out for its low-cost and reliable power, a critical factor for any data center operation.

Average Cost Of Power Industrial power rates average around $0.06/kWh as of February 2024. This highly competitive rate is one of the market's most significant advantages, directly reducing operational expenditures for compute-intensive workloads.

Power Grid Reliability The regional power grid, which relies heavily on natural gas and nuclear generation, is well-engineered. Data centers in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Jacksonville provides strategic access to Florida's growing economy, supported by an advantageous business and tax environment.

Proximity To Key Business Districts Data centers in Jacksonville are located near the city's central business district, a hub for financial services, insurance, and healthcare. The city's status as a major logistics and port city also makes it a key interconnection point for global trade.

Regional Market Reach Strategically located in Northeast Florida, Jacksonville provides excellent, low-latency reach to markets across Florida and into Georgia and the Carolinas. It is also a key gateway for subsea cable systems connecting North and South America.

Tax Advantage For Data Centers Florida provides multiple data center-specific tax exemptions that substantially reduce capital investment costs. These incentives, which cover sales tax and ad valorem (property) taxes on equipment, make building or expanding a data center in Jacksonville financially attractive.

Natural Disaster Risk

Jacksonville has a high natural disaster risk profile, requiring careful site selection and facility design.

Based on the FEMA National Risk Index, Jacksonville has a score of 87.72, indicating a high risk relative to other US communities as of September 2025. The primary environmental threats that operators must plan for and mitigate are hurricanes, tornadoes, lightning, riverine flooding, and wildfire. Data centers in this market are purpose-built to withstand hurricane-force winds and include extensive flood mitigation measures to ensure operational continuity.

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