Data Centers in Memphis
7 locations found
- V
Verizon Memphis
5127 Truse Road, Memphis
- UO
University of Memphis MEM01
Alumni Avenue, Memphis
- E
EdgeConneX EDCMEM01
4005 South Mendenhall Road, Memphis
Verizon MMHSTN
240 South Hollywood Street, Memphis
- L
Lumen Memphis
3993 Crowfarn Drive, Memphis
- E
Expedient Memphis
3180 Players Lane, Memphis
- DL
DataBank MEM1
7620 Appling Center Drive, Memphis
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Tennessee
Memphis – Strategic Hub for Digital Logistics
Executive Summary
Memphis is a strategic market for companies requiring a central US location with exceptional logistical capabilities. Its cost-effective environment makes it a prime candidate for disaster recovery sites and secondary compute nodes that serve the Southeast and Midwest. This positioning ensures resilient operations and protects revenue by maintaining application uptime for a significant portion of the country.
Memphis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional and national connectivity, though lacking direct top-tier international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extensions to hubs like Dallas or Atlanta. |
| Power Cost | $0.07 – $0.09/kWh, as of September 2025 | Competitive regional pricing helps manage high-density deployment costs effectively. |
| Disaster Risk | High (79.70) – as of September 2025 | Main risks include tornadoes, earthquakes from the New Madrid Seismic Zone, and severe storms. |
| Tax Incentives | Yes | Sales tax exemptions are available for qualified data center equipment purchases. |
| Sales Tax | 7.00% (State) – as of Midyear 2025 | Favorable exemptions for data centers can significantly reduce the effective tax burden. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Memphis provides access to over 14 network carriers as of September 2025. The market features several carrier-neutral facilities, offering diverse connectivity options for redundancy and performance.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps in Memphis. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through private connectivity to major hubs such as Dallas and Atlanta.
Internet Exchange Points (IXPs): The local Memphis Internet Exchange (MEMIX) facilitates regional traffic exchange. This allows local networks to improve performance and reduce latency for end-users in the metropolitan area.
Bare Metal: Bare metal server options are available from multiple providers. National and global providers like Hivelocity and phoenixNAP can service deployments in the Memphis region.
Power Analysis
Average Cost Of Power: Industrial power rates in Memphis typically range from $0.07 – $0.09/kWh as of September 2025. This competitive pricing creates a favorable financial environment for operating compute-intensive infrastructure. The state's power mix is dominated by nuclear (48%), natural gas (~29%), and hydroelectric (~10%), providing a stable and diverse energy supply as of 2023.
Power Grid Reliability: The regional grid, managed by the Tennessee Valley Authority (TVA), is well-engineered and known for its high reliability. Data centers in the area benefit from redundant power feeds and strong substation support, which is critical for maintaining uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Memphis are positioned to support the city's world-class logistics and distribution industry, led by FedEx's global headquarters. This proximity provides low-latency connectivity for supply chain management, healthcare, and manufacturing operations.
Regional Market Reach: From its central location, Memphis effectively serves a large geographic area, including the Southeast, the lower Midwest, and the Mississippi Delta. This makes it an excellent hub for content delivery networks and disaster recovery strategies.
Tax Advantage For Data Centers: Tennessee offers significant tax incentives for data centers. The primary benefit is a sales tax exemption on the purchase of computer hardware, software, and other essential data center equipment. This program directly lowers the capital investment needed to build out or upgrade a facility.
Natural Disaster Risk
Memphis has a high natural disaster risk profile, with a FEMA National Risk Index score of 79.70 as of September 2025. The area's location in the New Madrid Seismic Zone makes earthquakes a primary consideration for infrastructure design. Key risks for data center operators include tornadoes, severe storms bringing strong wind and hail, ice storms, and riverine flooding.
