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Data Centers in Atlanta

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Atlanta – Southeastern Connectivity & Resilience Hub

Atlanta is a premier US data center market for enterprises requiring low-latency connectivity to the Southeastern United States. Its dense ecosystem of networks and cloud providers offers a powerful alternative to traditional hubs, ensuring resilient application performance and broad market access. This combination of robust infrastructure and a favorable business climate drives high-value digital outcomes.

Atlanta: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top-tier access to US domestic, South American, and transatlantic networks.
Direct Cloud On-RampsOver 9 – as of September 2025Alibaba Cloud, AWS, Google Cloud (GCP), Microsoft Azure.
Power Cost$0.07 – $0.09/kWh (est.)Diverse grid with significant natural gas and nuclear generation.
Disaster RiskModerate (54.66) – as of September 2025Primary risks are atmospheric; located safely inland from major hurricane threats.
Tax IncentivesYesState-level sales and use tax exemption for high-tech data center equipment.
Sales Tax4.00% (State) – as of September 2025Georgia state sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Atlanta stands as one of the most connected cities in the United States, serving as the primary interconnection point for the Southeast.

Carrier Density & Carrier Neutrality With over 50 unique network providers, as of September 2025, the market offers deep and competitive connectivity options. Carrier-neutral facilities are abundant, providing flexible choices for building multi-carrier network strategies to maximize uptime and control costs.

Direct Cloud On-Ramps Over 9 dedicated cloud on-ramps provide direct, low-latency connections to 15 different cloud availability regions, as of September 2025. Major cloud providers with a dedicated presence include:

  • Alibaba Cloud
  • AWS (Amazon Web Services)
  • Google Cloud (GCP)
  • Microsoft Azure

Internet Exchange Points (IXPs) The city hosts major internet exchanges, including TIE Atlanta, which facilitates efficient traffic exchange between networks. This extensive peering environment reduces latency and improves performance for content delivery and application access throughout the region.

Bare Metal Bare metal server options are widely available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and direct hardware control.

Power Analysis

Atlanta provides reliable and competitively priced power, a critical factor for high-density computing.

Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09/kWh, as of September 2025, which is competitive for a primary US data center market. The state's diverse energy mix, featuring 41% natural gas and 34% nuclear, contributes to price stability.

Power Grid Reliability The power grid supporting Atlanta's data center corridors is well-engineered and highly reliable. Major facilities are typically fed by redundant substations from Georgia Power, ensuring stable power delivery for mission-critical operations.

Market Access, Business & Tax Climate

Atlanta's strategic location and pro-business environment make it a compelling choice for data center deployments.

Proximity To Key Business Districts Data centers are clustered throughout the metro area, providing direct access to Downtown Atlanta's financial and government sectors, as well as technology hubs in the surrounding counties. This proximity serves a large base of Fortune 500 companies headquartered in the region.

Regional Market Reach As the economic capital of the Southeast, Atlanta provides low-latency access to a massive population across Georgia, Florida, Alabama, Tennessee, and the Carolinas. It is the essential digital gateway for serving consumers and businesses in this fast-growing region.

Tax Advantage For Data Centers Georgia offers a High-Technology Data Center Sales and Use Tax Exemption that significantly reduces the cost of equipping and refreshing a facility. This state-level incentive lowers capital expenditures on servers, racks, and other critical hardware, making large-scale deployments more financially efficient.

Natural Disaster Risk

Atlanta has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 54.66 out of 100, as of September 2025. Its inland location protects it from the most severe coastal threats like storm surge.

The primary environmental risks are atmospheric and geologic events, including:

  • Tornado
  • Strong Wind (often from inland-moving tropical systems)
  • Hurricane (primarily rain, flooding, and wind)
  • Lightning
  • Riverine Flooding
  • Drought & Heatwave
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