Brightlio Blog

Nashville, Tennessee, has long been known for its rich musical heritage and vibrant arts scene. However, it’s more than just music making waves in this rapidly growing city. Over the past few years, Nashville has carved out a name for itself as a thriving technology ecosystem and a hotbed for data centers. In this blog post, we’ll explore the numerous benefits of Nashville colocation, including:

• Lower cost of power and real estate
• Robust network connectivity
•  A thriving technology ecosystem
• An educated workforce
• Proximity to other major markets.

We’ll also take a closer look at some of the top Nashville data center providers and discuss a few potential drawbacks to colocation in Tennessee. Let’s get started!

Cost Savings: Power and Real Estate

One of the main reasons organizations are drawn Nashville is the significant cost savings. The city offers affordable power rates, which can drastically reduce the operational expenses of running a data center. In Cushman Wakefield’s 2023 Global Data Center Market Comparison, Nashville was listed as one of the top markets for affordable power. With power cost at about $0.07 per kWh, it ranked just behind Portland, and ahead of Columbus and Las Vegas, in terms of low-cost power.

Real estate in Nashville, TN is also more affordable than in many other major metropolitan areas. With land prices around $7 per square foot, Nashville was one of the most affordable cities in Cushman Wakefield’s 2023 report. It ranked 5th globally, ahead other affordable locations like Phoenix, Austin, and Denver. The lower real estate prices allow for increased scalability and flexibility, as companies can more easily expand their infrastructure as their needs grow.

The relatively low power and real estate cost drive data center development in Nashville. Evoque and Archer Data Centers announced a joint venture to build 500,000 square feet of data center space in Gallatin, TN, a suburb of Nashville. The new data center facility will cater to hyperscalers, cloud service providers, and large enterprises.

A Thriving Technology Ecosystem

Nashville’s technology ecosystem is growing at an impressive rate. Technology jobs in the area increased by 51% from 2015 to 2020 and are expected to grow a further 12% annually from 2020 to 2025. The city’s booming tech sector includes diverse businesses, from well-established corporations to innovative startups. 

Some notable companies with a presence in the area include:

1. Amazon: In 2019, Amazon announced a $230 million investment to establish a new operations center in Nashville, creating 5,000 jobs. The Operations Center of Excellence, located in the city’s downtown area, focuses on the company’s logistics, transportation, supply chain, and customer fulfillment operations.
2. Oracle: Oracle is investing a record-setting $1.35 billion on a riverfront campus on the East Bank of the Cumberland River which is currently under construction. This project will employ over 8,500 technology, administrative, and security professionals by 2031 with average wages of $110,000.
3. Meta: Meta’s total investment in their Gallatin data center near Nashville is poised to reach $1 billion. The 900-acre property, Meta’s 13th U.S. data center, will reach nearly 2 million square feet between two buildings.

This thriving technology ecosystem offers access to many resources and opportunities for businesses seeking colocation services in Nashville. The presence of these companies fosters collaboration, innovation, and the exchange of ideas, further strengthening the city’s position as a technology hub.

An Educated Workforce

Nashville’s well-educated workforce is another key advantage. The area is home to several prestigious universities and colleges, including Vanderbilt, Belmont University, and Tennessee State University. These institutions form a steady pipeline of skilled professionals with IT, engineering, and data center management expertise.

The strong emphasis on education in Nashville has resulted in a highly skilled workforce, with nearly 40% of the adult population holding a bachelor’s degree or higher. This highly educated talent pool ensures businesses can easily find the expertise they need to support their data center operations and drive growth.

Proximity to Other Major Markets

Nashville’s strategic location is yet another advantage for businesses seeking colocation solutions. It is within a day’s drive of 75% of the U.S. population, making it an excellent choice for companies looking to expand their national reach. 

Nashville’s proximity to significant technology and business hubs in the Southeast, like Atlanta and Charlotte, provide additional benefits. Being close to Atlanta and Charlotte allows businesses in Nashville to tap into the resources and opportunities available in these larger metropolitan areas while enjoying the lower costs and quality of life offered by Nashville. This proximity also enables businesses to establish redundant data center operations across multiple locations, enhancing their resilience and disaster recovery capabilities.

Nashville Data Center Connectivity Options

Nashville offers excellent communications infrastructure, making it an ideal choice for colocation services. It is located between major cities in the South and the midwest, making it an excellent network hub location.

Google Fiber, CloudWyze, United Communications, and Comcast have all recently announced expansions in Middle Tennessee. This robust connectivity infrastructure ensures companies can maintain high-speed, low-latency connections to support their mission-critical applications and services.

Leading Nashville Data Center Providers

Here are a few leading Nashville data center providers recommended by Brightlio:

Evoque

Evoque’s Nashville data center is a 500,000-square-foot data center at 1398 Gateway Drive. It boasts a 100 MW capacity. Phase 1 includes 82,500 square feet of capacity. Evoque is investing substantially in the Tennessee market with a 61-acre joint venture with Archer Datacenters in Gallatin.

Why we recommend this site: 

• The facility boasts 100% renewable options, ideally suited for achieving corporate sustainability initiatives. 
• The site is highly connected with Lumen, Zayo, Windstream, AT&T, and Comcast options.
• If you need a national colocation strategy or are building a disaster recovery plan, you can leverage Evoque’s other locations in Atlanta or Chicago, which are interconnected with the Nashville site.

Flexential

Flexential is one of the largest retail colocation providers in Tennesee. They offer three data centers in the Nashville area located in Brentwood, Cool Springs, and Franklin. These combine to provide over 174,000 square feet of raised floor data center footprint.

Why we recommend these sites:

• Three locations to choose from give customers options on space, power configurations, and price points.
• The facilities are HIPAA and PCI-compliant.
• They offer 150 Watts per square foot power density.
• Flexential covers 19 markets across 39 data centers so that you can build a complete colocation and DR strategy.
• Flexential provides a cloud fabric with a PoP in Nashville with low-latency access to a cloud on-ramp in Atlanta.

H5 Data Centers

H5 Data Centers’ Nashville data center is located in the heart of downtown Nashville at 211 Commerce Street. The 22,000-square-foot location is one of the top connected facilities in Tennessee. H5 acquired the facility from vXchge in 2022.

Why we recommend this site:

• It meets compliance standards, including PCI-DSS, ISO 27001, and SOC2 Type II, perfect for clients in banking, healthcare, and other highly regulated industries.
• Carrier-neutral colocation services with ten on-net providers, including Megaport.
• Remote hands and managed data center services
• Convenient downtown Nashville location
• H5 offers access to public clouds, including AWS, Google, and Azure.

Brightlio can deliver colocation quotes for these sites and more based on your needs, location, and budget.

Drawbacks and Considerations for Colocation in Nashville

While Nashville, TN offers many advantages for businesses seeking colocation services, it’s also essential for organizations to consider potential disadvantages. Some of the challenges that companies may face when colocating in Nashville include:

1. Limited market size: While Nashville’s tech sector is growing rapidly, it is still a relatively small market compared to larger metropolitan areas like Atlanta and Charlotte. This may result in fewer options for data center providers.
2. Natural disaster risk: Nashville is located in a region prone to tornadoes and severe thunderstorms, which may threaten data center operations. It’s crucial to select a data center provider that has implemented robust disaster recovery plans and infrastructure to minimize the impact of such events.
3. Workforce competition: Although Nashville has a highly educated workforce, the growing technology ecosystem may lead to increased competition for top talent. As more tech companies establish a presence in the area, businesses may need to invest in additional resources to attract and retain skilled professionals.
4. Emerging market: Nashville’s data center and colocation market is still emerging, which may present some business uncertainties. However, the rapid growth of the tech sector and the increasing number of data center providers entering the market suggest a promising future for colocation in Nashville.

How Can Brightlio Help with Nashville Colocation?

If you are evaluating a Nashville data center, Brightlio can help. As a telecommunications broker, we offer data center and cloud solutions from a global network of partners. Whether you need a partial rack, full rack, private cage, or suite, we work with you to deliver a solution ideally suited to your needs and budget.

Additionally, we offer network connectivity, unified communications, and advisory services combining to deliver a complete technology solution for your business. We are your most trusted and responsive technology provider.

Request a quote from Brightlio today!