Data Centers in Louisville
8 locations found
- F
Flexential LOU02
752 Barret Avenue, Louisville
- F
Flexential LOU03
752 Barret Avenue, Louisville
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Flexential LOU04
752 Barret Avenue, Louisville
- W
Windstream Wholesale Louisville
929 Mason Avenue, Louisville
- C
Cogent SDF01
332 West Broadway, Louisville
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Lumen Louisville
848 South 8th Street, Louisville
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Data Canopy Louisville
1208 Quality Choice Pl, Louisville
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Flexential LOU05
2101 Nelson Miller Parkway, Louisville
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Louisville – Reliable Midwest Colocation Hub
Executive Summary
Louisville is a strategic data center market for enterprises focused on cost control, disaster recovery, and serving the American Midwest and Southeast. The city's combination of very low power costs, minimal natural disaster risk, and central location for logistics makes it a compelling choice. This market delivers excellent value and resilience for companies that require reliable infrastructure without the premium costs of a top-tier national hub.
Louisville: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity; not a primary interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connection requires network extension to hubs like Chicago or Nashville. |
| Power Cost | $0.06/kWh – as of 2023 | Significantly below the U.S. national average, lowering operational costs. |
| Disaster Risk | Moderate (37.13) – as of September 2025 | Very low overall score, with manageable risks from specific weather events. |
| Tax Incentives | Yes | Multiple programs offer sales and use tax exemptions on equipment and power. |
| Sales Tax | 6.00% (Kentucky) – as of Midyear 2025 | Data center-specific exemptions can offset this for qualifying projects. |
Network & Connectivity Ecosystem
Louisville provides a solid foundation for network connectivity, serving as a key distribution point for the Ohio Valley region.
Carrier Density & Carrier Neutrality: The market is served by over 10 network providers (as of September 2025), offering a competitive landscape for connectivity. Customers have access to multiple carrier-neutral facilities, ensuring choice and redundancy for local loops, long-haul transport, and internet services.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps in Louisville (as of September 2025). High-performance, low-latency access to providers like AWS, Google Cloud, and Microsoft Azure is achieved through private network extensions to major hubs like Nashville, Columbus, or Chicago.
Internet Exchange Points (IXPs): Public peering is limited within Louisville. Most interconnection is handled through private peering arrangements within local data centers or by routing traffic to regional IXPs in larger cities like Chicago or Atlanta to optimize network performance.
Bare Metal: Bare metal server solutions are available from providers operating within the Louisville market. Companies like Hivelocity offer dedicated server infrastructure for workloads requiring direct hardware access and maximum performance.
Power Analysis
Louisville stands out for its low-cost and dependable power infrastructure, making it highly attractive for energy-intensive computing.
Average Cost Of Power: The industrial electricity rate is approximately $0.06/kWh (as of 2023). This price is among the most competitive in the nation and provides a significant operational cost advantage for data center operators and their clients. The grid is primarily fueled by coal and natural gas.
Power Grid Reliability: The electrical grid serving Louisville's primary commercial and industrial zones is well-engineered and stable. Data centers in the area are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Kentucky's business-friendly environment and Louisville's geographic advantages create a strong case for data center investment.
Proximity To Key Business Districts: Data centers in Louisville are positioned to serve the city's major industries, including logistics, advanced manufacturing, and healthcare. The presence of UPS Worldport makes it a critical location for any company whose supply chain and IT infrastructure are intertwined.
Regional Market Reach: From Louisville, organizations can effectively deliver services and applications to a large population across the Midwest and Southeast. The city provides low-latency reach to major markets like Indianapolis, Cincinnati, Nashville, and St. Louis.
Tax Advantage For Data Centers: Kentucky offers specific tax incentives that substantially reduce the cost of building and operating a data center. Qualifying projects can receive exemptions on sales and use tax for computer equipment, software, and electricity, directly improving the return on investment.
Natural Disaster Risk
Louisville has a moderate natural disaster risk profile, with an overall FEMA National Risk Index score of 37.13 (as of September 2025). While the overall risk is low compared to many U.S. metros, businesses should engineer infrastructure to mitigate specific, well-understood regional hazards. The most significant threats include tornados, riverine flooding, earthquakes (due to proximity to the New Madrid Seismic Zone), strong wind, and hail.
