Data Centers in Louisiana

Louisiana – Resilient Infrastructure for the Gulf South

Executive Summary

Louisiana serves as a strategic backup and expansion hub for companies targeting the Gulf South. Its combination of aggressive industrial tax incentives and competitive power rates makes it a prime choice for workloads that require cost efficiency. Deploying here ensures a reliable midpoint between major Texas hubs and the Southeastern coast.

Louisiana: At A Glance

Network & Connectivity Ecosystem

Louisiana acts as a vital bridge for traffic moving across the southern United States. The infrastructure is built to support the heavy industrial and energy sectors that drive the local economy.

Carrier Density & Carrier Neutrality: Carrier count: over 10 as of September 2025. The market provides a mix of national Tier 1 providers and regional fiber specialists, ensuring competitive transit options for transport and backhaul.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. Local on-ramps for providers like AWS or Google Cloud (GCP) are not present. Businesses use private extensions or wave services to reach cloud nodes in Dallas or Houston.

Internet Exchange Points (IXPs): Public peering is limited, as most high-volume exchange happens at national hubs. Local operators rely on private peering or transport to Texas-based regional exchanges to manage traffic flows.

Bare Metal: High-performance dedicated hardware is available for specialized workloads. Providers such as Hivelocity and phoenixNAP offer deployment options for those requiring physical isolation and direct control.

Power Analysis

The energy landscape is defined by massive industrial capacity and proximity to natural gas resources. This environment provides a stable foundation for power-intensive deployments.

Average Cost Of Power: Industrial electricity costs range from $0.07 – $0.09/kWh as of September 2025. This pricing provides a significant financial advantage over coastal markets, supporting high-density colocation and compute-heavy projects.

Power Grid Reliability: The grid is supported by a well-engineered network of substations built for heavy manufacturing. Redundant transmission lines provide stability for mission-critical data center corridors.

Market Access, Business & Tax Climate

Louisiana provides a business-friendly setting for data-intensive companies. The state focuses on long-term partnerships with enterprise-level operators.

Proximity To Key Business Districts: Data centers are centrally located near commercial cores in New Orleans, Baton Rouge, and Shreveport. This proximity supports the local energy, legal, and medical sectors that require low-latency access.

Regional Market Reach: A deployment here effectively serves the entire Gulf South population. It is a strategic midpoint for data moving between Florida and Texas across the southern United States.

Tax Advantage For Data Centers: Operators benefit from an 80% property tax abatement for up to 10 years on industrial assets. Sales tax rebates on equipment purchases further lower the cost of entry for custom hardware builds.

Natural Disaster Risk

The regional disaster profile is rated as Low (22.14) as of September 2025. While the overall score is favorable, facility selection must account for specific weather patterns common to the Gulf region.

• Hurricane: High regional concern requiring wind-rated shells and elevated infrastructure.
• River Flooding: Moderate risk near the Mississippi River.
• Tornado: Moderate risk during seasonal transitions.
• Lightning: High frequency requires specialized grounding and surge protection.
• Strong Wind: High frequency associated with tropical and seasonal storms.

Other risks like Earthquakes and Landslides are minor or not material for primary data center corridors.