Data Centers in Nashville

Nashville – Southeastern Hub for Connectivity & Content

Nashville serves as a strategic data center market for organizations requiring low-latency access to the Southeastern United States. Its competitive power costs and growing connectivity ecosystem make it an ideal location for content delivery, healthcare IT, and disaster recovery, enabling businesses to scale operations efficiently while controlling costs. This market provides a robust alternative to more congested primary hubs like Atlanta.

Nashville: At A Glance

Network & Connectivity Ecosystem

Nashville's connectivity is strong for a secondary market, anchored by significant fiber infrastructure built to serve its primary music and healthcare industries.

Carrier Density & Carrier Neutrality With over 20 network providers present, as of September 2025, Nashville offers a healthy, carrier-neutral environment. Enterprises can connect with multiple backbone providers in the 17 colocation facilities, ensuring redundant and competitive network services.

Direct Cloud On-Ramps There are no direct, in-market public cloud on-ramps in Nashville, as of September 2025. Businesses connect to cloud providers via the nearest major hub in Atlanta through private network extensions like PNI or wavelength services, providing secure and reliable access.

Internet Exchange Points (IXPs) The local ecosystem is supported by the Nashville Internet Exchange (NashIX). This IXP facilitates local peering, which reduces latency and transit costs for traffic between regional networks.

Bare Metal Bare metal compute is readily available from providers in the Nashville market. This allows businesses to deploy dedicated server infrastructure for performance-sensitive workloads, with options available from providers like Hivelocity.

Power Analysis

Nashville benefits from a reliable and cost-effective power grid managed by the Tennessee Valley Authority (TVA), one of the largest public power systems in the country.

Average Cost Of Power Industrial power rates typically range from $0.07 to $0.09/kWh, as of 2023. This competitive pricing significantly reduces the total cost of ownership for high-density compute deployments. The grid's energy mix includes approximately 48% nuclear and 10% hydroelectric generation, offering a stable power profile.

Power Grid Reliability The power infrastructure serving Nashville's data center corridors is well-engineered and resilient. Redundant substations and strong transmission networks from the TVA provide the high uptime required for mission-critical operations.

Market Access, Business & Tax Climate

Nashville's business environment is driven by its central location, major corporate headquarters, and favorable tax policies.

Proximity To Key Business Districts Data centers in the Nashville area are strategically located to serve the city's booming healthcare and entertainment industries. This proximity provides low-latency connectivity essential for healthcare data management, digital content production, and streaming services.

Regional Market Reach Positioned as a central hub in the Southeast, Nashville offers effective, low-latency reach to millions of end-users in key markets. Its network routes provide reliable connectivity to Atlanta, Charlotte, Indianapolis, and St. Louis.

Tax Advantage For Data Centers Tennessee offers a sales tax exemption on the purchase of computer hardware, software, and other qualified equipment for use in a data center. This incentive directly lowers the initial capital investment required to build or expand a significant infrastructure footprint.

Natural Disaster Risk

Nashville has a high risk profile according to the FEMA National Risk Index, with a score of 79.70 out of 100, as of September 2025. The risks are almost entirely weather-related, requiring data centers to be built to withstand severe storm events.

The primary natural hazards include tornadoes, strong wind, hail, ice storms, riverine flooding, and heat waves. The region's infrastructure is engineered to manage these events, but a comprehensive disaster recovery plan is essential for any deployment in this market.