Data Centers in Delaware

Delaware – Corporate Haven, Low-Latency Edge

Delaware offers a unique combination of zero sales tax and strategic proximity to major East Coast markets like Philadelphia, Baltimore, and Washington D.C. This makes it an excellent location for businesses needing cost-effective disaster recovery sites or low-latency edge deployments to serve the dense Mid-Atlantic corridor. The state provides a stable platform for compute infrastructure supporting financial services and corporate enterprise operations.

Delaware: At A Glance

Network & Connectivity Ecosystem

Delaware's connectivity is solid for a market of its size, characterized by its strategic location between larger peering hubs.

Carrier Density & Carrier Neutrality: The state is served by approximately 5 providers across 3 data centers, as of September 2025. Facilities are carrier-neutral, offering access to regional and national networks necessary for enterprise and edge workloads.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Delaware, as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated circuits to nearby interconnection hubs in Ashburn, Virginia, and Philadelphia, Pennsylvania.

Internet Exchange Points (IXPs): Public peering is not a major feature of the Delaware market. Most traffic exchange occurs through private peering within local data centers or is routed through the major IXPs in Ashburn and Philadelphia.

Bare Metal: Bare metal server options are available, typically through providers that have a presence in the broader Mid-Atlantic region. Providers like Hivelocity and ColoCrossing can service deployments in the area.

Power Analysis

Delaware's power infrastructure is sufficient for its current data center footprint, but its generation mix influences cost.

Average Cost Of Power: Industrial electricity rates are estimated between $0.12 and $0.14/kWh, as of September 2025. This pricing is shaped by the state's heavy reliance on natural gas, which comprises over 80% of its power generation.

Power Grid Reliability: The grid supporting Delaware's primary commercial areas is well-engineered to meet enterprise needs. Proximity to major transmission lines serving the East Coast ensures stable power delivery for critical operations.

Market Access, Business & Tax Climate

Delaware is world-renowned for its business-friendly legal and tax environment, which extends to technology infrastructure.

Proximity To Key Business Districts: Data centers in Delaware are strategically located to serve the state's massive financial services and legal sectors in Wilmington, as well as the broader Philadelphia metropolitan area.

Regional Market Reach: The state is positioned to provide low-latency connectivity to a vast population across Delaware, Maryland, Southern New Jersey, and Pennsylvania. It acts as an effective edge location or secondary disaster recovery site for the primary hubs of Ashburn and New York.

Tax Advantage For Data Centers: The most significant financial benefit is Delaware's 0% sales tax. This exemption applies to all data center hardware, software, and power purchases, drastically reducing the capital and operational expense of an IT deployment.

Natural Disaster Risk

Delaware has a High-risk profile for natural disasters, with a FEMA National Risk Index score of 92.94, as of September 2025. The state's coastal location and position in the Mid-Atlantic expose it to several significant weather-related threats.

Key risks include hurricanes, coastal and riverine flooding, winter weather, and severe thunderstorms that can produce tornadoes, strong winds, and lightning. While earthquake and wildfire risks are present, they are substantially lower than the primary weather hazards.