Data Centers in Florence
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Florence – Cost-Effective Midwest Colocation
Florence, Kentucky, offers a compelling data center market for businesses prioritizing low operating costs and a stable risk profile. It serves as an effective location for secondary disaster recovery sites or for workloads that need to reach the Cincinnati metropolitan area and the broader Ohio Valley region with low latency.
Florence: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for DR and latency-tolerant applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via private network extension to major hubs like Cincinnati or Columbus. |
| Power Cost | 6.26 ¢/kWh – as of 2023 | Significantly below the national average, making it ideal for high-density deployments. |
| Disaster Risk | Moderate (37.13) – as of September 2025 | Low overall risk profile; primary hazards are severe storms and related events. |
| Tax Incentives | Yes | Multiple DC-specific sales and use tax exemptions are available for qualified projects. |
| Sales Tax | 6.00% – as of 2025 | Kentucky state sales tax. |
Network & Connectivity Ecosystem
The Florence area, as part of the greater Cincinnati market, provides a practical connectivity environment for regional business operations.
Carrier Density & Carrier Neutrality: The market contains one data center with access to at least four unique network providers as of September 2025. Carrier-neutral facilities offer pathways to a broader ecosystem of regional and national carriers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Florence itself. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network extensions to nearby primary markets such as Cincinnati, Columbus, or Ashburn.
Internet Exchange Points (IXPs): Public peering is limited in Florence. Most interconnection occurs privately within data centers or is routed through major exchange points in larger Midwestern hubs like Chicago.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like ColoCrossing and phoenixNAP can serve the region from nearby data centers.
Power Analysis
Kentucky's power landscape is defined by its exceptionally low cost and a grid heavily reliant on traditional generation sources.
Average Cost Of Power: The industrial electricity rate in Florence is approximately $0.06/kWh as of 2023, which is one of the lowest in the nation. This low cost provides a significant operational advantage for power-intensive computing. The state's power mix is dominated by coal (~70%) and natural gas (~25%).
Power Grid Reliability: The power grid supporting the northern Kentucky region is well-engineered for industrial use. Data centers in the area are typically fed by redundant power substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Florence offers strategic access to a significant economic corridor with a favorable business environment.
Proximity To Key Business Districts: The market provides low-latency access to the Cincinnati metropolitan area, including its central business district and the surrounding industrial and logistics hubs in Ohio and Kentucky. This proximity is ideal for supporting regional enterprise and e-commerce operations.
Regional Market Reach: From Florence, organizations can effectively serve a large population base across Kentucky, Ohio, and Indiana. It is a strategic location for disaster recovery infrastructure supporting primary sites in more expensive or higher-risk markets.
Tax Advantage For Data Centers: Kentucky offers compelling tax incentives specifically for data center operators. Approved projects can receive exemptions on sales and use taxes for equipment and infrastructure, which significantly lowers the initial capital investment required to build or expand.
Natural Disaster Risk
Florence 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 primary risks are atmospheric, consistent with its location in the Ohio Valley.
Key environmental risks for data centers include severe weather events such as tornadoes, strong winds, hail, and winter storms. The area also has a noted risk for riverine flooding and earthquakes, although these are less frequent than severe storm events. The absence of coastal threats like hurricanes makes it a stable location for critical infrastructure.
