Data Centers in Lebanon
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Lebanon, Ohio – Low-Cost Midwest Colocation
Executive Summary
Lebanon, Ohio offers a compelling colocation market for businesses that need a cost-effective, low-risk location to serve the Cincinnati-Dayton metropolitan area. Its primary advantage is extremely low natural disaster risk, providing a stable platform for critical infrastructure and data protection. This market is ideal for disaster recovery sites and secondary deployments supporting regional operations.
Lebanon, Ohio: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity suitable for regional enterprise and disaster recovery needs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is via nearby hubs like Cincinnati or Columbus through private network extensions. |
| Power Cost | $0.07 - $0.09/kWh | Power costs are competitive, supported by a natural gas-heavy generation mix. |
| Disaster Risk | Low (19.50) – as of September 2025 | The region has a very low score from FEMA's National Risk Index. |
| Tax Incentives | Yes | Negotiated tax credits are available through the Ohio Tax Credit Authority for data center projects. |
| Sales Tax | 5.75% (State Rate) – as of September 2025 | This is the base state sales tax; local taxes may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to over 4 carriers as of September 2025. Carrier-neutral facilities ensure diverse connectivity options for redundancy and competitive pricing.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Lebanon as of September 2025. Businesses connect to major cloud providers via dedicated network extensions to larger hubs like Cincinnati or Columbus.
Internet Exchange Points (IXPs): Public peering is not established directly within Lebanon. Most network peering is conducted privately or through major IXPs located in nearby metropolitan centers.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-intensive applications. Providers like Hivelocity and ColoCrossing can serve the region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Lebanon area range from approximately $0.07 to $0.09/kWh as of September 2025. These competitive power costs help reduce the total cost of ownership for compute-heavy deployments.
Power Grid Reliability: Ohio's power grid is well-engineered, with a generation mix dominated by natural gas (59%) and coal (19%) as of 2023. Data centers in the region are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Lebanon is strategically positioned between the major business centers of Cincinnati and Dayton. This location provides low-latency access for enterprises in aerospace, healthcare, and manufacturing throughout the metroplex.
Regional Market Reach: A data center in Lebanon effectively serves Southern Ohio and can act as a secondary site for primary deployments in larger Midwest markets like Columbus or Indianapolis.
Tax Advantage For Data Centers: Ohio offers significant tax advantages for data center operators. The state provides negotiated tax credits that can substantially reduce the financial burden of large-scale investments in digital infrastructure.
Natural Disaster Risk
Lebanon has a very low natural disaster risk profile, with a FEMA National Risk Index score of 19.50 as of September 2025. The environment is stable, making it a secure location for critical infrastructure. Key risks, while minimal, include tornado, river flooding, severe wind, and winter weather.
