Data Centers in Memphis
6 locations found
- V
Verizon Memphis
5127 Truse Road Memphis TN 38117 USA, Memphis
- E
EdgeConneX EDCMEM01
4005 South Mendenhall Road Memphis TN 38115 USA, Memphis
- UO
University of Memphis MEM01
Alumni Avenue Memphis TN 38111 USA, Memphis
- E
Expedient Memphis
3180 Players Lane Memphis TN 38125 USA, Memphis
- L
Lumen Memphis
3993 Crowfarn Drive Memphis TN 38118 USA, Memphis
- DL
DataBank MEM1
7620 Appling Center Drive Memphis TN 38133 USA, Memphis
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Memphis – Logistic Hub for Resilient Digital Infrastructure
Memphis serves as a critical point for organizations requiring reliable, low-latency connectivity across the logistics-heavy Mid-South. The market offers a unique combination of resilient utility infrastructure and strategic tax advantages for enterprise deployments. This city is a superior alternative for companies that value industrial-scale power availability and proximity to global distribution centers.
Memphis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Regional reach with reliable fiber infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps in Atlanta via private extension. |
| Power Cost | $0.07–$0.09/kWh, as of September 2025 | Competitive industrial rates with a diverse generation mix. |
| Disaster Risk | High (79.7), as of September 2025 | Seismic and weather risks are primary considerations. |
| Tax Incentives | Yes | Sales tax exemptions for qualified equipment and purchases. |
| Sales Tax | 7.00%, as of September 2025 | Standard state rate for Tennessee deployments. |
Network & Connectivity Ecosystem
Memphis is a vital node for data traffic moving through the southeastern and central United States. The market supports a growing density of fiber routes that capitalize on the status of the city as a global logistics center.
Carrier Density & Carrier Neutrality: Carrier count: over 14, as of September 2025. The market features a mix of Tier 1 and regional providers, typically supporting between 10 and 20 carriers per facility. Most facilities offer carrier-neutral environments to ensure competitive pricing and diverse routing options.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While there are no direct native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the city limits, local providers offer low-latency private extensions to the nearest national hubs in Atlanta.
Internet Exchange Points (IXPs): Local peering primarily occurs through private interconnects or by connecting to major regional exchanges in Nashville or Atlanta, as of September 2025. This ensures traffic stays local where possible while maintaining high-speed links to the broader internet backbone.
Bare Metal: High-performance compute requirements are well-served in the region by providers like Hivelocity and phoenixNAP, as of September 2025. These providers offer flexible, single-tenant hardware solutions for demanding workloads.
Power Analysis
Memphis benefits from a stable utility landscape that supports the heavy power requirements of modern colocation and high-density computing.
Average Cost Of Power: Industrial electricity rates are estimated between $0.07–$0.09/kWh, as of September 2025. This competitive pricing is supported by a generation mix in Tennessee that includes 48% nuclear and 29% natural gas, providing a balanced energy supply.
Power Grid Reliability: The local grid is supported by a redundant network of substations and high-voltage transmission lines, as of September 2025. Major data center corridors utilize well-engineered infrastructure to ensure consistent uptime for enterprise users.
Market Access, Business & Tax Climate
The Memphis business environment is purpose-built for industries that rely on speed and distribution.
Proximity To Key Business Districts: Data centers are located near major logistics hubs, including the FedEx SuperHub and the Memphis International Airport. Proximity to these centers is essential for logistics, medical research, and supply chain companies requiring minimal latency.
Regional Market Reach: A deployment in Memphis effectively serves the entire Mid-South region, covering Tennessee, Mississippi, and Arkansas. This allows businesses to reach a significant population base with lower latency than using distant northern hubs.
Tax Advantage For Data Centers: Tennessee offers specific sales and use tax exemptions on qualified data center equipment, as of September 2025. This financial benefit lowers the capital expenditure required for hardware refreshes and initial infrastructure builds.
Natural Disaster Risk
The Memphis market carries a FEMA NRI Score of High (79.7) as of September 2025. Infrastructure in this region is typically built to exceed standard building codes to manage specific environmental factors.
- Earthquake: Proximity to the New Madrid Seismic Zone is a primary consideration for structural engineering and data center design.
- Tornado: Severe wind events are a seasonal risk requiring facilities with reinforced exteriors and secure roofing systems.
- River Flooding: Proximity to the Mississippi River necessitates site selection and flood mitigation strategies for low-lying areas.
- Ice Storm: Winter weather can impact utility delivery, though major data center corridors are prioritized for grid restoration.
- Heatwave: High summer temperatures require efficient cooling systems and resilient HVAC infrastructure to maintain operating environments.
