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Why Location Matters: Power, Connectivity, and Access

The practical factors that determine where data centers are built.

Data centers are not built randomly. Their location is the result of a set of practical requirements that determine whether a site can support reliable, long-term operation. Power, connectivity, proximity, and zoning all play a role — and the balance between them varies depending on what type of facility is being built.

Radius DC approaches site selection through the lens of the customers its facilities serve: enterprises, network operators, and latency-sensitive workloads that need both strong connectivity and proximity to the markets they operate in.

Access to Power

Power is the most fundamental requirement. A data center requires a reliable, continuous electricity supply — and depending on the size of the facility, it can require significant grid capacity. Site selection involves understanding whether a utility can serve current needs, provide redundant feeds for reliability, and support growth over time.

The cost of power is also a meaningful factor. Markets with competitive commercial electricity rates — like Atlanta, Indianapolis, and Denver — offer a structural advantage for operators and their customers. Radius DC’s facilities are served by established utilities in each of its markets, with existing power infrastructure already in place at the time of development.

How Radius DC Thinks About Location

Radius DC selects markets based on a combination of:

  • Power availability and cost — seeking competitive utility rates with existing grid infrastructure
  • Fiber density and carrier diversity — prioritizing locations where multiple networks converge
  • Proximity to enterprise demand — building in markets where businesses need local colocation
  • Resilience profile — evaluating natural disaster risk, climate, and environmental factors

The result is a portfolio built in markets where the demand is real and the infrastructure already exists to support it.

Connectivity and Fiber Networks

Network connectivity is the second critical factor. Data travels between users and data centers through fiber-optic networks, and the density and diversity of those networks at a given location directly affects how well a facility can serve its customers.

For carrier hotels — facilities designed to house multiple network providers and serve as interconnection hubs — location within an existing fiber ecosystem is essential. This is why Radius DC’s downtown Atlanta and Miami facilities are in buildings with decades of carrier infrastructure already in place. The connectivity cannot be easily replicated elsewhere.

For newer edge colocation facilities, the question is whether the site has access to the fiber routes that connect the facility to the broader network. The Plainfield, Indiana campus and the Phoenix facility on East University Drive both sit within established connectivity corridors serving their respective markets.

Proximity to Users and Enterprises

For many applications, distance between the user and the data center affects performance. The closer a facility is to the people and businesses it serves, the faster information can travel in both directions. This matters most for applications requiring real-time responses: video calls, navigation, AI inference, financial transactions, and connected services of all kinds.

This is one reason Radius DC focuses on urban and near-urban markets rather than remote locations. Building close to where demand exists — in the metro cores and growing suburban corridors of cities like Nashville, Atlanta, and Indianapolis — is central to how edge colocation delivers value.

Zoning and Site Planning

Data centers are typically developed in areas already designated for commercial or industrial use. Local zoning determines where projects can be built, and most responsible developers work within these existing frameworks rather than seeking to rezone residential or agricultural land.

Within a qualifying zone, site planning addresses how a facility integrates with its surroundings: setbacks from roads and neighboring properties, sound management, access and security, and the operational footprint over time. These considerations are part of responsible development and are increasingly the subject of community discussion as data center construction expands into new markets.

Media Contact for RadiusDC

Jaymie Scotto & Associates (JSA)

jsa_radiusdc@jsa.net

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