Data Centers in Kentucky
11 locations found
- F
Flexential LOU05
2101 Nelson Miller Parkway, Louisville
- F
Flexential LOU02
752 Barret Avenue, Louisville
- F
Flexential LOU03
752 Barret Avenue, Louisville
- F
Flexential LOU04
752 Barret Avenue, Louisville
- W
Windstream Wholesale Louisville
929 Mason Avenue, Louisville
- C
Cogent SDF01
332 West Broadway, Louisville
- L
Lumen Louisville
848 South 8th Street, Louisville
- DC
Data Canopy Louisville
1208 Quality Choice Pl, Louisville
- QN
QX.net Lexington
333 West Vine Street, Lexington
- W
Windstream Wholesale Lexington
151 South Martin Luther King Boulevard, Lexington
- C
CyrusOne CIN6
7190 Industrial Road, Florence
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Explore Markets in Kentucky
Kentucky – Low-Cost Power in a Central US Hub
Executive Summary
Kentucky offers a compelling combination of exceptionally low power costs and significant tax incentives, making it a prime market for businesses seeking cost-effective data center operations. Its central location provides low-latency access to major markets in the Midwest and Southeast, ideal for disaster recovery, content delivery, and scalable compute infrastructure. This strategic position ensures efficient and resilient service delivery to a broad US population.
Kentucky: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; lacks a major national peering or interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connections require network extension to hubs like Ashburn, VA, or Chicago, IL. |
| Power Cost | $0.06/kWh – as of 2023 | Among the lowest industrial power rates in the United States. |
| Disaster Risk | Moderate (37.13) – as of September 2025 | Primary risks are severe storms, inland flooding, and tornadoes. |
| Tax Incentives | Yes | Multiple DC-specific sales, use, and property tax exemptions are available for qualifying projects. |
| Sales Tax | 6.00% (State) – as of 2025 | Data center-specific exemptions can significantly reduce or eliminate this tax on equipment. |
Network & Connectivity Ecosystem
Kentucky's connectivity is reliable for regional enterprise needs but lacks the density of a primary Tier 1 market.
Carrier Density & Carrier Neutrality: The state is served by over 12 network providers as of September 2025. Carrier-neutral facilities are available, primarily in the larger metro areas of Louisville and Lexington, offering a sufficient blend of local, regional, and national carriers for most business requirements.
Direct Cloud On-Ramps: There are no direct, in-state cloud on-ramps to major providers as of September 2025. Accessing hyperscale cloud fabrics requires network extensions or private line services to major interconnection hubs such as Ashburn, VA, or Chicago, IL.
Internet Exchange Points (IXPs): Public peering is limited within Kentucky. Most network traffic is exchanged through private peering arrangements within colocation facilities or routed through major IXPs in nearby cities like Chicago and Atlanta.
Bare Metal: Bare metal server options are available from providers operating within the state, offering dedicated compute for performance-sensitive workloads. Providers like ColoCrossing have a presence in the region.
Power Analysis
Kentucky stands out for its highly competitive power costs and stable grid infrastructure.
Average Cost Of Power: The state boasts one of the lowest industrial electricity rates in the nation at approximately $0.06/kWh as of 2023. This significant cost advantage directly reduces the total cost of ownership for high-density compute and large-scale data center deployments. The grid is predominantly supplied by coal (~70%) and natural gas (~25%).
Power Grid Reliability: The electrical grid is well-engineered and provides reliable power, particularly in the established business corridors. Major data center locations typically have access to redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Kentucky offers a favorable business environment, combining a central location with aggressive, data center-specific tax incentives.
Proximity To Key Business Districts: Data centers in cities like Louisville and Lexington are strategically positioned to serve the state's core economic sectors, including manufacturing, logistics, and healthcare. This proximity supports low-latency application performance for local and regional enterprises.
Regional Market Reach: From Kentucky, organizations can effectively serve a large portion of the US population, reaching major markets across the Midwest, Southeast, and East Coast within a minimal number of network hops. This makes it an excellent location for disaster recovery sites and content distribution nodes.
Tax Advantage For Data Centers: Kentucky provides substantial tax incentives, including multi-year sales and use tax exemptions on data center equipment and software. These programs are designed to lower the significant upfront capital investment required to build and equip a modern data center.
Natural Disaster Risk
Kentucky has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 37.13 out of 100 as of September 2025. The risk score is considered very low relative to the national average, but the region is exposed to specific and recurring weather events.
Key environmental risks for data center planning include:
- Tornadoes: The state is located in a region susceptible to tornado activity.
- Severe Storms: Hail, strong straight-line winds, and lightning are common occurrences.
- River Flooding: Proximity to major river systems presents a risk of inland flooding.
- Winter Weather: Ice storms and heavy snow can impact travel and infrastructure.
- Earthquakes: The state has some exposure to seismic risk from the New Madrid Seismic Zone.
