Brightlio Blog

Atlanta data centers are leading the way in the Southeast’s technology boom. The city has gained traction among major technology firms and colocation providers thanks to its strategic location and robust infrastructure. Atlanta colocation services offer superior connectivity and competitive pricing, making Atlanta an attractive option compared to other regions. In this article, we’ll delve into the success of Atlanta data centers, focusing on their connectivity prowess and cost advantages. If you’re exploring data center options in Atlanta, you’ve come to the right place.

Atlanta Has a Thriving Data Center Industry

Atlanta is the 8th largest data center market globally, according to Cushman & Wakefield. It is also the 6th largest market in the Americas, trailing only Virginia, Oregon, Phoenix, Dallas, and Columbus. With over 1,000 megawatts of commissioned power, the thriving competition among Atlanta colocation providers allows consumers to choose facilities that match their growing needs.

Demand for Atlanta data centers is growing. In 2023, data center construction increased by 211% in the city to 732.6 Megawatts, according to CBRE. Atlanta has the second most data center pipeline under development according to Cushman & Wakefield’s “2024 Global Data Center Market Comparison“. Many data centers are located in the downtown Atlanta area. Cumberland, Norcross, Marietta, and Alpharetta are also home to retail colocation facilities and cloud service providers.

Atlanta Offers Affordable and Reliable Energy

The average energy rate in Atlanta is around 16 ¢/kWh which is 32% lower than the country’s national average and 46% lower than tier-one data center markets like Los Angeles. Many generating plants and substations exist in Atlanta, and the state of Georgia oversees these energy providers to guarantee a reliable power supply. 

Two powerful corporations regulate Atlanta’s power supply: The Georgia Power Company, which is responsible for servicing most parts of the city, and the Greystone Power Cooperative, which services outlying suburbs. Because utility cost is an essential factor businesses consider in retail colocation, Atlanta uses a mix of alternative fuels to build an affordable and sustainable energy supply on which data center facilities can rely.

These alternative fuels include natural gas, nuclear energy, coal, and hydropower. As of 2019, only 6%-8% of the power in Georgia comes from renewable sources. Georgia’s government invests heavily in green energy sources to match its sustainability goals. In 2017, Atlanta became the 27th U.S. city to commit to 100% renewable energy by 2035. These alternative sources contribute to the low-cost, abundant power supply that benefits Atlanta data centers.

Atlanta Offers Excellent Connectivity

One of the primary reasons to choose an Atlanta data center is the region’s exceptional connectivity. Atlanta’s strategic location places it at a crossroads for multiple fiber-optic networks, offering unparalleled access to high-speed internet and various carrier options. This dense network infrastructure allows Atlanta data centers to provide low-latency connections and redundancy, ensuring high availability and reliability for your business-critical applications.

In addition to serving major markets like New York, Chicago, Miami, and Dallas, Atlanta’s connectivity extends to key cities in the Southeast, including Charlotte, Nashville, Birmingham, and Jacksonville. This expansive network reach makes Atlanta a crucial hub for businesses seeking reliable and fast connections across the region. Moreover, the city hosts major Internet Exchange Points (IXPs), facilitating rapid data transfer among various networks and ensuring seamless connectivity for businesses with operations throughout the Southeast.

Digital Realty’s facility at 56 Marietta Street is ranked as one of the top 25 carrier hotels in the United States. Atlanta is also home to three Microsoft Azure availability zones. This makes Atlanta an excellent choice for low-latency connectivity to Azure.

Atlanta Has a Low Natural Disaster Profile

In over six decades, Georgia has only experienced 65 federally declared natural disasters. This is compared to other prominent data center markets like California (284), Texas (255), and New York (95). A favorable natural disaster profile is a boost for Atlanta data centers. In this section, we’ll highlight some common natural disasters and their corresponding risk to the city of Atlanta.

Thunderstorms and flooding

These are the most common natural disasters affecting Atlanta. Over the next three decades, the city may suffer a moderate risk of flooding. The office of emergency preparedness leads a periodic readiness and planning strategy to help protect the city and its businesses from damages that may result from extreme weather.

Hurricane

Atlanta is more than 450 km away from the Atlantic Ocean, minimizing the likelihood of damage from hurricanes that develop over the Gulf of Mexico and the Atlantic Ocean.

Earthquakes

Earthquakes in Atlanta are a rare sight compared to other prominent data center markets like California. The largest earthquake in Georgia was in 1991, and the last moderate earthquake was in 2002. According to the U.S. Geological Society database, Atlanta is predicted only to have a 0.73% chance of an earthquake happening soon.

Atlanta Is Home to a Growing Community of Tech Companies

Also called the “Silicon Valley of the South,” Atlanta is home to over 1,000 tech companies and headquarters. The city also ranks among the top ten data center hubs in the United States. Popular technology companies stationed in the city include Microsoft, Cardlytics, Apple, Kabbage, Calendly, Google’s parent company Alphabet, and Pindrop.

Additionally, Atlanta is home to two popular tech communities that enable startups and established tech companies to thrive.

• The Atlanta Tech Village is a state-funded business incubator that supports young entrepreneurs across the state.
• The Atlanta Tech park is a tech accelerator developed to help potential investors set up shop in Georgia. The program is ideal for businesses still in their growth phase and in need of additional support like access to capital and a solid business network.

In 2022, the Atlanta colocation industry experienced the highest percentage growth compared to other primary markets like Phoenix and Dallas. With an increasing demand for retail colocation services in Atlanta, this competition allows businesses access to various providers that can match their unique requirements.

Atlanta Has Friendly Business and Tax Policies 

When choosing a colocation facility, it’s essential that the area has friendly economic policies that support business expansion. As your business grows, you want a data center facility that can grow with you. Atlanta’s very friendly real estate industry makes it easy for data centers to set up and manage facility growth.

Coupled with affordable real estate rates, the state of Georgia provides tax breaks for Atlanta colocation facilities and data centers. To qualify for the tax exemption, data centers must maintain an average of new quality jobs during the investment period and match the minimum investment threshold based on the population of the county in which the facility resides.

Georgia’s government has introduced a new bill that extends the “Sales and Uses Tax” exemption for colocation facilities for another ten years. In addition, the new bill adds a clause that:

• Mandates data centers to create new jobs in counties with a population of fewer than 50,001 people. 
• Allows data centers with a qualifying purchase of $15 million to be exempt from additional purchase tax.

This new bill will also allow colocation facilities in these counties to qualify for more federal tax breaks.

Atlanta Colocation Providers We Recommend

Below are a few Atlanta-area data center providers Brightlio recommends. If you need Atlanta colocation pricing, please contact us.

Centersquare

Centersquare’s Atlanta data center is located just outside Atlanta in Lithia Springs. The 137,000 square foot facility was operated under the Evoque brand before a rebranding in April 2024.

Reasons we like Centersquare:

• Their 100% SLA for power, network, and bandwidth demonstrates Centersquare’s commitment to uptime.
• Numerous on-net carrier partners, including AT&T, Cogent, Lumen, and Zayo, plus excellent cloud connectivity via Megaport.
• The facility has multiple compliance certifications including SOC 2 Type II, SOC 3, and PCI-DSS.

Evocative

Evocative’s facility is located in downtown Atlanta at 250 Williams Street. The facility offers 36,000 square feet of data center space, and 15 Megawatts of power.

Reasons we like Evocative:

• Tier 3 data center facility with redundant power feeds, UPS, and generators for maximum reliability.
• With data centers in markets including Los Angeles, New Jersey, Silicon Valley, Dallas, and Phoenix, Evocative is a good fit for a national colocation strategy.
• Evocative offers additional value-add services including bare metal servers, backup, and cloud.

Flexential

Flexential operates three Atlanta data centers located in Alpharetta, Norcross, and Douglasville, Georgia. They combine to offer 380,00 square feet of data center footprint and 30.7 Megawatts of power.

Reasons we like Flexential:

• Three locations to choose from means more flexible space and power options.
• Flexential offers 41 US data centers, including in markets like Denver, Las Vegas, Charlotte, Nashville, Minneapolis, and Cincinnati. This makes them an excellent regional or national colocation partner.
• A 100 Gig backbone between markets provides customers with plenty of network capacity.

The Bottom Line: How Can Brightlio Help?

Are you interested in an Atlanta data center? With a mix of favorable business incentives, a robust fiber network, and a thriving tech ecosystem, data centers in Atlanta provide the perfect market for your colocation needs.

Our team offers competitive colocation pricing for Atlanta colocation facilities at no cost or obligation. We also provide cloud, network connectivity, and unified communications services to help your business enjoy a well-rounded tech solution.

Contact Brightlio today to select the right colocation partner for your data center needs and budget.

Frequently Asked Questions

Why choose Atlanta for colocation?

Atlanta, a hub for technology and innovation, provides access to reputable data centers with reliable connectivity, robust bandwidth options, and excellent cloud services. The city’s central location in the Southeast region enhances connectivity and reduces latency for businesses across multiple states.

What about connectivity and bandwidth options?

Atlanta data centers provide exceptional connectivity with high-speed network connections, ensuring fast and reliable data transfer. You can choose from a wide range of internet bandwidth options tailored to your business needs. There is also great connectivity to other locations, including Chicago, Dallas, Miami, Washington, D.C., and more. This makes Atlanta colocation a great option for backup and disaster recovery applications.

Are “remote hands” services available in Atlanta colocation facilities?

Yes! Atlanta colocation grants you access to skilled professionals who can assist with tasks like server reboots, troubleshooting, and hardware installations, saving you time and effort. Organizations also benefit from other offered by a carrier neutral Atlanta data center including dedicated servers, migration services, and deployment services.