Data Centers in Lebanon
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Lebanon, OH – Strategic Midwest Colocation Hub
Lebanon, Ohio offers a compelling colocation environment for businesses prioritizing cost control, disaster recovery, and serving the Cincinnati-Dayton metropolitan areas. Its location provides a stable and secure platform for production workloads and secondary disaster recovery sites, minimizing risk while maintaining connectivity to major US markets.
Lebanon, OH: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via nearby hubs like Cincinnati or Columbus. |
| Power Cost | $0.08-0.10/kWh – as of September 2025 | Favorable industrial power rates contribute to lower operational expenses. |
| Disaster Risk | Low (NRI Score: 19.50) – as of September 2025 | Very low exposure to major natural disasters, ideal for resiliency. |
| Tax Incentives | Yes | Negotiated tax credits are available for significant data center investments. |
| Sales Tax | 5.75% (Ohio state rate) – as of September 2025 | The state-level sales tax applies to equipment and service purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
The Lebanon market is served by over 4 distinct network carriers as of September 2025. Facilities in the area offer carrier-neutral environments, providing choice and resiliency for network services.
Direct Cloud On-Ramps
There are no direct public cloud on-ramps within Lebanon as of September 2025. Secure, private connections to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure are established through dedicated circuits to network hubs in nearby Cincinnati or Columbus.
Internet Exchange Points (IXPs)
Public peering is not a major feature of the local market. Most interconnection is handled privately between carriers or routed through major exchange points in larger regional cities like Columbus.
Bare Metal
Bare metal server options are available in the broader Ohio region, with providers like Hivelocity and ColoCrossing offering dedicated compute resources from nearby data center hubs.
Power Analysis
Average Cost Of Power
Industrial electricity rates in the Lebanon area are estimated to be between $0.08 and $0.10 per kWh as of September 2025. This competitive pricing makes the market attractive for managing the high power consumption typical of modern compute infrastructure. The local grid mix is dominated by natural gas (59%) and coal (19%), as of 2023.
Power Grid Reliability
The power grid supporting the Cincinnati-Dayton corridor is well-engineered and stable. Data centers in the region are typically supplied by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Lebanon's data centers are strategically positioned between the major business centers of Cincinnati and Dayton. This location provides low-latency connectivity to a diverse industrial base, including aerospace, manufacturing, healthcare, and technology companies.
Regional Market Reach
From Lebanon, businesses can effectively serve a large population across Ohio, Kentucky, and Indiana. Its central location makes it an excellent node for content delivery and application hosting for the broader Midwest region.
Tax Advantage For Data Centers
Ohio provides significant tax incentives for large-scale data center projects. These negotiated agreements can substantially reduce the tax burden on capital investment and operating expenses, improving the total cost of ownership.
Natural Disaster Risk
Lebanon, Ohio, has a very low natural disaster risk profile, with a FEMA National Risk Index score of 19.50 as of September 2025. This score makes it a highly stable location for critical infrastructure and disaster recovery sites. The primary environmental risks to consider are severe thunderstorms, which can include hail, strong winds, lightning, and tornadoes, alongside potential for river flooding and winter weather events.
