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Data Centers in Atlanta

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Atlanta – The Digital Hub of the Southeast

Atlanta is the premier interconnection and colocation hub for the Southeastern United States. Its dense fiber network, significant cloud access, and competitive operating costs make it a critical location for enterprises requiring low-latency access to regional customers and resilient national connectivity.

Atlanta: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top-tier market with extensive fiber and carrier diversity for reliable, low-latency routes.
Direct Cloud On-RampsOver 9 – as of September 2025Alibaba Cloud, AWS, Azure, Google Cloud (GCP) are available via direct connection.
Power Cost$0.07-0.09/kWh – as of September 2025Power mix is primarily natural gas and nuclear, providing stable and competitive energy costs.
Disaster RiskModerate (54.66) – as of September 2025Primary risks are atmospheric; located safely inland from major hurricane impact zones.
Tax IncentivesYesState-level sales and use tax exemptions are available for high-technology data center equipment.
Sales Tax4.00% (Georgia) – as of July 2025Favorable state sales tax rate, with specific exemptions further lowering colocation costs.

Network & Connectivity Ecosystem

Atlanta's network ecosystem is one of the most developed in North America, anchored by massive carrier hotels and a high concentration of service providers. The city's location makes it a natural traffic aggregation point for the entire Southeast.

Carrier Density & Carrier Neutrality: With over 50 unique network providers present, as of September 2025, Atlanta offers exceptional choice. The market is dominated by large, carrier-neutral facilities, ensuring competitive pricing and diverse routing options for optimal uptime.

Direct Cloud On-Ramps: The city supports over 9 dedicated cloud on-ramps, enabling direct, private access to 15 different cloud regions as of September 2025. Major providers available include AWS, Alibaba Cloud, Azure, and Google Cloud (GCP).

Internet Exchange Points (IXPs): Atlanta is home to multiple IXPs, with the DataBank IX and the Telx Internet Exchange (TIE) being among the most significant. These exchanges facilitate efficient, low-cost traffic peering between networks, reducing latency for regional end-users.

Bare Metal: Bare metal server options are widely available from multiple providers in Atlanta. Companies like Hivelocity and phoenixNAP offer dedicated servers for workloads requiring maximum performance and control.

Power Analysis

Atlanta provides a compelling combination of affordable and reliable power, a critical factor for high-density compute and storage deployments.

Average Cost Of Power: Industrial electricity rates are competitive for the region, typically ranging from $0.07 to $0.09/kWh as of September 2025. This cost advantage directly reduces the total cost of ownership for data center operations. The state's power is generated from a mix of natural gas (41%), nuclear (34%), coal (~13%), and renewables (~12%).

Power Grid Reliability: The power grid serving Atlanta's primary data center corridors is well-engineered and highly reliable. Major facilities are supported by redundant substations from Georgia Power, ensuring stable and consistent energy delivery for critical operations.

Market Access, Business & Tax Climate

Atlanta's business-friendly environment and strategic location provide a distinct advantage for colocation customers.

Proximity To Key Business Districts: Data centers are located with easy access to Downtown, Midtown, and Buckhead, as well as the numerous Fortune 500 companies headquartered in the metro area. This proximity facilitates hybrid IT solutions and supports latency-sensitive applications.

Regional Market Reach: As a central hub, Atlanta provides excellent low-latency network reach to major markets across the Southeast, including Charlotte, Nashville, and cities throughout Florida. It serves a population of over 50 million people within a few milliseconds of round-trip network time.

Tax Advantage For Data Centers: Georgia offers a significant sales and use tax exemption on qualifying data center equipment. This incentive directly lowers the capital expenditure required for deploying new hardware or expanding an existing footprint.

Natural Disaster Risk

Atlanta has a moderate natural disaster risk profile, with a national risk score of 54.66 out of 100 as of September 2025. Its inland location protects it from the most severe coastal threats.

The primary environmental risks for data center operations in the Atlanta area are mainly atmospheric and geological. Key hazards to consider include tornadoes, strong winds, heatwaves, riverine flooding, and potential for drought. The risk from hurricanes is significantly lower than in coastal cities, though the area can experience related heavy rainfall and wind.

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