Data Centers in Nashville

Nashville – Southeastern Hub for Digital Infrastructure

Executive Summary

Nashville is a primary southeastern hub for businesses requiring resilient, low-latency infrastructure without the costs of larger coastal markets. The city's strong connectivity, favorable power costs, and strategic location make it an excellent choice for healthcare IT, content delivery, and disaster recovery. Deploying in Nashville ensures high-speed access to millions of end-users across the Southeast and Midwest.

Nashville: At A Glance

Network & Connectivity Ecosystem

Nashville has developed into a significant connectivity market, serving as a key intersection for fiber routes connecting the Midwest and Southeast. The ecosystem provides ample capacity for modern digital infrastructure needs.

Carrier Density & Carrier Neutrality With over 20 unique network providers present, as of September 2025, Nashville offers substantial choice for transit, transport, and private line services. The market features multiple carrier-neutral data centers, allowing customers to interconnect with the providers that best fit their performance and cost requirements.

Direct Cloud On-Ramps Nashville does not have any direct cloud on-ramps for major public clouds. Businesses connect to cloud providers primarily through private network links to the nearest major hubs in Atlanta. This dedicated connectivity ensures secure, low-latency performance for hybrid cloud architectures.

Internet Exchange Points (IXPs) The primary exchange is the Nashville Internet Exchange (NashIX). This IXP allows local networks, content providers, and enterprises to exchange traffic directly, reducing latency and improving performance for users within the region.

Bare Metal Bare metal server options are readily available from multiple providers in the Nashville market. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and security without virtualization overhead.

Power Analysis

Average Cost Of Power Industrial power costs in the Nashville area typically range from $0.07 to $0.09 per kWh, as of 2023. This competitive pricing is driven by the Tennessee Valley Authority (TVA), a public utility known for stable rates and a reliable grid. These lower power costs provide a significant operational advantage for high-density computing and large-scale deployments.

Power Grid Reliability The regional power grid is exceptionally reliable, drawing from a diverse generation mix that includes nuclear (48%), natural gas (~29%), and hydroelectric (~10%). Data centers in the primary colocation zones are supported by well-engineered infrastructure and often have access to power from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Nashville's data centers are strategically located to serve the city's booming healthcare and music industries. This proximity provides the low-latency connectivity required for processing critical healthcare records, managing digital rights, and streaming high-definition content.

Regional Market Reach Positioned as a central logistics hub, Nashville can effectively serve a broad geographic area. It offers single-digit millisecond latency to major population centers in Tennessee, Kentucky, Alabama, and Georgia, reaching over 10 million people with high-performance applications.

Tax Advantage For Data Centers Tennessee offers a compelling tax climate for data center operators and tenants. The state provides a sales tax exemption on the purchase of computer hardware, software, and related equipment for qualifying data centers. This incentive directly reduces the capital expenditure required for building, expanding, or refreshing critical IT infrastructure.

Natural Disaster Risk

Nashville has a High natural disaster risk profile, with a FEMA National Risk Index score of 79.70, as of September 2025. While the overall risk is elevated compared to the national average, it is manageable with modern data center design and established operational protocols.

The primary environmental threats to infrastructure in the region are:

• Tornado: The area is located in a region with frequent tornadic activity.
• Ice Storm / Winter Weather: Significant ice accumulation can threaten power lines and transit.
• Strong Wind: Severe thunderstorms frequently produce damaging straight-line winds.
• Riverine Flooding: Proximity to the Cumberland River presents a flooding risk in specific low-lying areas.
• Earthquake: The region has a latent risk due to its proximity to the New Madrid Seismic Zone.