Data Centers in Hanover

Hanover – Strategic Resiliency for Mid-Atlantic Infrastructure

Hanover serves as a strategic edge location for enterprises needing a balance of low-cost operations and high-speed access to the Northeast corridor. By positioning workloads here, businesses gain the benefit of Pennsylvania tax incentives and reliable power without the premium pricing of major metro cores. It is an ideal site for disaster recovery and regional latency-sensitive applications.

Hanover: At A Glance

Network & Connectivity Ecosystem

The connectivity landscape in Hanover is defined by its role as a regional relay, providing sturdy links to the massive peering points in the Mid-Atlantic. All data is as of September 2025.

Carrier Density & Carrier Neutrality: Carrier count: over 7. The market supports between 7 and 10 carriers, offering a reliable selection of fiber providers for diverse routing and carrier-neutral configurations.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. While no native cloud on-ramps exist within the immediate city limits, high-capacity transport links provide efficient private connections to the major cloud clusters in Ashburn.

Internet Exchange Points (IXPs): Public internet exchanges are limited locally, so most peering occurs via private interconnects or by managing transport to national hubs in Philadelphia and Northern Virginia.

Bare Metal: High-performance bare metal services are available through providers such as ColoCrossing, offering dedicated hardware for workloads that require specific performance guarantees.

Power Analysis

Energy infrastructure in Hanover is supported by a stable and diversified grid, providing a reliable foundation for high-density colocation.

Average Cost Of Power: The average industrial electricity cost is approximately $0.07/kWh, as of September 2025. This rate is favorable compared to neighboring coastal markets, directly reducing the total cost of ownership for power-intensive deployments.

Power Grid Reliability: The local grid is supported by a reliable mix of natural gas (55%) and nuclear (30%) generation. It utilizes multi-substation support to ensure consistent uptime for critical data center corridors.

Market Access, Business & Tax Climate

Hanover is positioned to serve as a vital link between major metropolitan centers, offering a business-friendly environment for technology investment.

Proximity To Key Business Districts: Data centers in this area are centrally located to serve the Lehigh Valley and Central Pennsylvania business districts. This proximity is vital for manufacturing, healthcare, and logistics sectors requiring low-latency data processing.

Regional Market Reach: From this location, providers can effectively reach a massive population base across Pennsylvania, Maryland, and New Jersey. This makes it a prime site for regional distribution and edge computing.

Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption for computer data center equipment through a specific state program. This incentive significantly lowers the capital expenditure required for refreshing hardware or expanding server footprints.

Natural Disaster Risk

Hanover carries a FEMA NRI Score of 83.99, resulting in a High risk profile as of September 2025. While the area is inland and shielded from immediate coastal threats, it remains susceptible to several regional weather patterns.

• Tornado: Rated as a significant risk for the region, requiring purpose-built structural reinforcements.
• Winter Weather: Frequent ice and snow events can impact local logistics and requires specialized facility management.
• River Flooding: High localized risk near regional waterways during heavy precipitation.
• Heat Wave: Rising summer temperatures require resilient cooling strategies to maintain uptime.

Other hazards such as landslides and wildfires are considered minor or are not material to the local data center risk profile.