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Data Centers in Florida: Colocation in the Sunshine State
In today’s hyper-connected digital landscape, the location and efficiency of a data center can significantly impact a business’s performance and resilience. As companies seek strategic locations that offer robust infrastructure, optimal connectivity, and growth opportunities, data centers in Florida are emerging as a top choice. With a unique combination of geographical advantages, advanced network systems, and a business-friendly environment, Florida is positioning itself as a premier hub for businesses needing superior colocation services.
Colocation data centers are finding a haven in Florida. With about 120 data centers listed in 17 markets in Florida, the Sunshine State has the fourth most data center locations in the U.S., after California, Texas, and New York. Florida’s strategic location, connectivity, and thriving labor workforce are leading the list of things that make Florida attractive for data centers.
Florida’s tech workforce ranks 4th nationally. Nearly 485,000 people work in tech jobs in Florida, representing 4.9% of the total state workforce. Also, net tech employment in Florida grew by 4.8% in 2022, well above the national figure of 3.2%. The state ranks 1st for submarine fiber landings in the U.S., 3rd for high-tech employment growth, and 3rd for fiber miles.
Read on to discover the myriad of benefits that this Sunshine State brings to the table for forward-thinking enterprises.
Florida Offers Strategic Proximity to South America & Caribbean
Florida’s unique geographical positioning offers businesses a distinct edge in accessing markets in Latin America and the Caribbean. Florida colocation facilitates faster and more efficient data transmissions due to shorter distances compared to other parts of the U.S. For organizations with customers in these regions, having a colocation facility in Florida can mean reduced latency and improved performance.
Moreover, Florida’s infrastructure has been continuously enhanced to cater to the growing demands of international trade and communications. Several undersea cable systems land in Florida, providing direct data connections to South America and the Caribbean. As a result, businesses that colocate in Florida benefit from a broader range of connectivity options and can optimize their network routes for cost and performance.
Florida is a Hub to the Southeastern U.S.
Beyond its international connections, Florida is also a nexus to the broader Southeastern United States. Colocating in Florida allows companies to enjoy low-latency connectivity to major cities like Atlanta, Raleigh, and Nashville. This ensures optimal data transfer speeds and reliability within this dynamic region.
Florida is one of the world’s largest connection hubs, with multiple connection hubs that allow for high-speed data transmission overseas. The state is also recognized as one of the top five telecom hubs in the world. The presence of key internet service providers in the Sunshine State ensures reduced latency and faster data transfer speeds. Additionally, research shows that over 95% of Floridians have access to high-speed broadband.
Florida Offers Friendly Tax Policies
Florida offers a sales tax exemption for data centers, infrastructure, equipment, personal property, and electricity. This exemption eliminates sales tax and Use Tax for data centers, making it an attractive location for businesses in the tech industry and eventually helping data centers save on costs.
Additionally, data centers are recognized as approved projects for inclusion in the Florida Enterprise Zone incentives programs. This program provides tax credits, refunds, and other incentives to promote business development and job creation.
While Florida levies a corporate income tax, its rate is competitive compared to other states like Iowa, Pennsylvania, Illinois, and California. Additionally, the state provides various credits, exemptions, and deductions, which can further reduce the effective tax rate for data centers.
These provisions and the state’s overall low-tax burden make Florida a financially strategic location for data center operators looking to maximize their profits while benefiting from a robust and supportive business environment.
Major Data Center Markets in Florida
Customers looking into data centers in Florida are presented with various key markets to consider. Let’s explore them:
Miami: The Gateway City
Miami is a rapidly growing city. Global data center leader Coresite lists Miami as the #9 data center market in the US . Positioned as a significant international hub, Miami’s status as the “Gateway to Latin America” cements its role as a pivotal location for data centers. Key data centers such as the NAP of the Americas (NOTA) and Equinix Miami IBX bolstered direct connectivity to commercial hubs in Latin America, the U.S., and Europe.
Miami data centers also benefit from access to multiple global submarine cable systems. These include AMX-1, ARCOS-1, South American Pacific Link, and TGN-Atlantic. These allow colocation providers, carriers, and cloud service providers to connect to connect to much of South America, Central America, the Caribbean, and Europe.
Orlando: The Innovation Hub
Orlando, often recognized for its world-renowned attractions and vibrant tourism industry, is also carving a niche for itself as a pivotal data center market in Florida. Ranked as the 50th largest data center market in the U.S. and 54th in North America, Orlando is home to 12 data centers. Its central location within the state makes it a strategic choice for businesses seeking to serve both the northern and southern parts of Florida with minimal latency.
Orlando boasts a growing tech ecosystem spurred by a combination of academic institutions, tech incubators, and a burgeoning IT workforce. This dynamic environment is conducive to innovation and the proliferation of tech-related businesses, subsequently driving demand for robust data center services. Furthermore, being positioned inland, Orlando is less susceptible to the direct impacts of coastal hurricanes, offering an added layer of resiliency for data centers and the critical assets they house.
Jacksonville: The Northern Powerhouse
Jacksonville is cementing its reputation as a Northern Florida data center powerhouse. This strategic location, often seen as a bridge between the Deep South and the bustling East Coast, offers a unique blend of connectivity and scalability for businesses seeking optimal data solutions. Furthermore, according to a study by Bloomberg and LinkedIn, Jacksonville has emerged as the 4th most preferred destination for tech workers.
The average industrial electricity rate in Jacksonville, Florida, is 5.91¢/kWh, which is 26.49% lower than Florida’s 8.04¢/kWh. Furthermore, when compared nationally, Jacksonville’s rate is 11.39% less than the national average rate of 6.67¢/kWh, fluctuating between 4.13¢/kWh and 30.82¢/kWh. Lower energy costs mean lower pricing for colocation services.
Choosing Florida for data center operations provides a wealth of advantages. Its strategic position as a gateway to Latin America and Europe and its thriving tech workforce make it an attractive hub for businesses. From the internationally connected Miami and the innovative powerhouse of Orlando to the burgeoning technological capabilities of Jacksonville, enterprises can pinpoint a location within Florida that seamlessly caters to their specific needs.
Consequently, as the demand for digital infrastructure surges, Florida colocation centers stand ready to bolster businesses in their quest for scalability, connectivity, and digital advancement.
Brightlio Delivers Florida Colocation Services
If you’re investigating data centers in Florida, turn to Brightlio. As a telecommunications and colocation broker, we have data center partners in Florida and across the globe ready to provide solutions tailored to your needs and budget. Simply share your space, power, and connectivity needs and we’ll provide colocation pricing at no charge.
Beyond colocation, we also offer connectivity, unified communications, cloud, infrastructure hosting, disaster recovery, and advisory services. This comprehensive suite ensures we can offer your enterprise a complete technology solution.
Contact Brightlio now to get started!
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