Data Centers in Memphis
6 locations found
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 – Logistics Hub with Resilient Infrastructure
Memphis is a strategic data center market for companies requiring a central US location with low latency to the Southeast, Midwest, and Gulf Coast. Its position as a global logistics hub, anchored by FedEx, makes it a prime choice for disaster recovery and content delivery networks that depend on reliable, cost-effective infrastructure. The market's primary advantage is its combination of affordable power and a favorable business climate.
Memphis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with a focus on core transport and logistics networks. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud hubs are in Dallas or Atlanta; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Industrial rates benefit from a diverse and stable grid managed by the TVA. |
| Disaster Risk | High (79.70 Score) – as of September 2025 | Primary risks include earthquake and severe storms; modern facilities are built to mitigate these. |
| Tax Incentives | Yes | Sales tax exemptions are available for qualified data center equipment and software purchases. |
| Sales Tax | 7.00% (State) – as of September 2025 | This state-level tax can be offset by specific data center incentive programs. |
Network & Connectivity Ecosystem
Memphis provides solid network infrastructure, serving as a key distribution point for the central and southern United States. While not a top-tier interconnection hub, its ecosystem is well-suited for enterprise, disaster recovery, and content caching.
Carrier Density & Carrier Neutrality With 14 unique network providers and 6 data centers, as of September 2025, Memphis offers competitive carrier-neutral colocation options. This environment ensures redundant connectivity paths for production and business continuity workloads.
Direct Cloud On-Ramps There are no direct, in-market cloud on-ramps available in Memphis, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated circuits to nearby hubs such as Atlanta or Dallas.
Internet Exchange Points (IXPs) Public peering is limited within Memphis itself. Most network interconnection occurs through private peering arrangements inside local data centers or by connecting to major exchange points in Atlanta or Dallas.
Bare Metal Bare metal server capacity is available from multiple providers in the Memphis market. Options exist from global suppliers like Hivelocity and phoenixNAP, allowing businesses to deploy dedicated compute without capital expenditure.
Power Analysis
Memphis benefits from its location within the Tennessee Valley Authority (TVA) service area, which is known for providing some of the most reliable and cost-effective power in the nation.
Average Cost Of Power Industrial electricity rates generally range from $0.07 to $0.09 per kWh, as of September 2025. This cost advantage makes Memphis attractive for compute-intensive operations. The power mix is dominated by nuclear (48%) and natural gas (29%), with a significant hydroelectric component, ensuring stable pricing.
Power Grid Reliability The regional power grid is well-engineered and highly reliable. The diverse energy generation mix, including nuclear, natural gas, and hydroelectric sources, contributes to grid stability and minimizes dependence on a single fuel type.
Market Access, Business & Tax Climate
Memphis offers a compelling business environment, combining a strategic geographic location with significant financial incentives for technology-focused operations.
Proximity To Key Business Districts Data centers in Memphis are strategically located to support the area's massive logistics and distribution industry, including the FedEx World Hub. This makes it an ideal location for supply chain management, e-commerce fulfillment, and healthcare technology companies.
Regional Market Reach From Memphis, organizations can effectively serve a large portion of the United States population with low latency. It provides a strategic midpoint between major markets like Dallas, Atlanta, Chicago, and Houston.
Tax Advantage For Data Centers Tennessee provides a significant sales tax exemption for the purchase of computer hardware, software, and other essential equipment used in a qualified data center. This incentive directly reduces the capital cost of building out or expanding a technical footprint, making large-scale deployments more affordable.
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. While the score is elevated, modern data centers in the region are designed and constructed to mitigate these specific threats.
The primary risks for infrastructure in the Memphis area include:
- Earthquake: Proximity to the New Madrid Seismic Zone presents a notable risk.
- Tornado: The region is susceptible to frequent and severe tornadic activity.
- Strong Wind & Hail: Severe thunderstorms are common and can produce damaging winds and hail.
- Riverine Flooding: Risk exists in low-lying areas near the Mississippi River and its tributaries.
- Heat Wave & Winter Weather: The area can experience extreme temperature events.
