Data Centers in Lebanon
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Lebanon, Ohio – Secure Midwest Colocation Hub
Executive Summary
Lebanon, Ohio is a strategic choice for businesses requiring a low-risk, cost-effective data center location. It offers an exceptionally safe disaster profile and access to competitive power rates, making it ideal for secondary disaster recovery sites and primary workloads that do not require Tier 1 market proximity. This market ensures infrastructure resilience while helping to control long-term operational costs.
Lebanon, Ohio: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for regional needs, but not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access requires network extensions to major hubs like Columbus or Cincinnati. |
| Power Cost | $0.07 - $0.09/kWh, as of 2023 | Based on a diverse grid of natural gas, coal, nuclear, and renewables. |
| Disaster Risk | Low (19.50 NRI Score), as of September 2025 | Significantly lower risk profile compared to coastal or seismically active regions. |
| Tax Incentives | Yes | Negotiated tax credits are available for large-scale data center projects. |
| Sales Tax | 5.75% (State base rate), as of September 2025 | Ohio state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: A focused group of over 4 carriers provides local and regional connectivity in Lebanon, as of September 2025. The market supports carrier-neutral facilities, allowing customers to choose their own network providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Lebanon. Access to hyperscale cloud providers requires private network connections to data center hubs in nearby cities such as Cincinnati or Columbus.
Internet Exchange Points (IXPs): Public internet peering is primarily handled through regional exchanges in major Ohio cities. Most local traffic exchange relies on private peering arrangements established directly with network carriers.
Bare Metal: Bare metal server options are available through providers that serve the greater Cincinnati-Dayton metropolitan area. Companies like Hivelocity and phoenixNAP can provide dedicated compute resources to customers in the region.
Power Analysis
Average Cost Of Power: Industrial power rates in the Lebanon area are competitive, estimated between $0.07 and $0.09/kWh, as of 2023. This favorable pricing helps reduce the total cost of ownership, especially for high-density computing deployments.
Power Grid Reliability: The Ohio power grid is well-supported by a diverse energy generation mix that includes natural gas (59%), coal (19%), nuclear (12%), and renewables (10%), as of 2023. This balance provides a stable and reliable power supply for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Lebanon is strategically located between the major business centers of Cincinnati and Dayton. This position allows data centers to serve a broad commercial and industrial base with low latency.
Regional Market Reach: The market provides effective coverage for the tri-state area of Ohio, Kentucky, and Indiana. It is a capable hub for application delivery and content distribution throughout this significant economic region.
Tax Advantage For Data Centers: Ohio offers notable tax advantages through its Tax Credit Authority, which can award negotiated tax breaks for significant data center investments. These incentives directly reduce long-term operational expenditures for qualifying projects.
Natural Disaster Risk
Lebanon, Ohio, has a very low natural disaster risk profile, with a FEMA National Risk Index score of 19.50 out of 100, as of September 2025. The environment is geologically stable and far from coastal threats, protecting critical infrastructure investments.
The primary environmental risks for the area are tornados, riverine flooding, strong wind, winter weather, and hail.
