Data Centers in Louisville

Louisville – A Strategic Hub for Central US Colocation

Louisville, Kentucky offers a compelling data center market for businesses requiring a central US presence with low power costs and minimal disaster risk. This location is ideal for organizations focused on serving the Midwest and Southeastern United States, providing a stable operating environment that supports high uptime and predictable operational expenses.

Louisville: At A Glance

Network & Connectivity Ecosystem

Louisville provides reliable connectivity with a focus on regional performance. While not a primary national hub, its ecosystem is more than sufficient for enterprise applications, disaster recovery, and content delivery into the central United States.

Carrier Density & Carrier Neutrality: The market features 8 data centers with access to 11 network providers, as of September 2025. This environment offers healthy competition and choice for building resilient network architectures.

Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers, as of September 2025. Businesses connect to cloud regions via private network links to nearby hubs like Cincinnati, Indianapolis, or Nashville, ensuring secure, low-latency access.

Internet Exchange Points (IXPs): Public peering is limited within Louisville. Most interconnection occurs through private peering within carrier-neutral facilities or by connecting to major IXPs in Chicago.

Bare Metal: Bare metal server options are available in the Louisville market. Providers such as ColoCrossing offer dedicated server solutions for workloads requiring direct hardware access and control.

Power Analysis

Louisville stands out for its exceptionally low power costs, making it a prime location for power-intensive computing.

Average Cost Of Power: The industrial electricity rate is approximately $0.06/kWh, as of 2023. This price is significantly below the national average and provides a substantial operating cost advantage for data center tenants. The grid is primarily powered by coal (~70%) and natural gas (~25%).

Power Grid Reliability: The power infrastructure supporting Louisville's primary data center locations is well-engineered. Facilities typically offer multi-substation support and redundant power feeds to ensure high levels of uptime.

Market Access, Business & Tax Climate

Louisville's central location and supportive business environment make it an attractive secondary data center market.

Proximity To Key Business Districts: Data centers in Louisville serve the metropolitan area's logistics, healthcare, and manufacturing sectors. Its central location also makes it an effective hub for companies with operations distributed throughout the Ohio River Valley.

Regional Market Reach: From Louisville, organizations can effectively serve a large population across Kentucky, Indiana, Ohio, and Tennessee with low latency. It is a strategic location for disaster recovery sites for primary operations in Chicago, Atlanta, or Ashburn.

Tax Advantage For Data Centers: Kentucky provides strong, data center-specific tax incentives that significantly lower capital expenditures. Approved projects can receive sales and use tax exemptions on computer equipment, software, and construction materials, directly improving the return on investment.

Natural Disaster Risk

Louisville 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 weather-related, with minimal exposure to major seismic or coastal events. Key hazards include tornado, riverine flooding, severe wind, ice storms, and hail.