Data Centers in Delaware
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Delaware – Strategic East Coast Colocation
Delaware provides a compelling colocation environment for businesses prioritizing cost efficiency and strategic access to the dense Mid-Atlantic corridor. Its primary advantage is financial, driven by the absence of a state sales tax, which directly reduces the total cost of ownership for hardware deployments. While not a primary interconnection hub, its proximity to major markets like Philadelphia and Ashburn ensures reliable, low-latency connectivity for regional service delivery.
Delaware: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, though not a top-tier national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to Ashburn, VA, or Philadelphia, PA. |
| Power Cost | $0.11 - $0.13/kWh, as of September 2025 | In line with regional averages; the grid is dominated by natural gas. |
| Disaster Risk | High (92.94), as of September 2025 | Primary risks include hurricane, coastal flooding, and strong winds. |
| Tax Incentives | No | Delaware does not offer specific data center tax incentive programs. |
| Sales Tax | 0.00%, as of Midyear 2025 | A significant financial advantage for equipment and software purchases. |
Network & Connectivity Ecosystem
Delaware's ecosystem is suited for regional distribution and disaster recovery rather than primary, high-density interconnection.
Carrier Density & Carrier Neutrality The state is served by over 5 network providers as of September 2025, offering access to major national backbones. Facilities are carrier-neutral, providing resilient connectivity options between Wilmington and surrounding metropolitan areas.
Direct Cloud On-Ramps There are no direct cloud on-ramps located within Delaware. Businesses achieve secure, low-latency cloud access through private network interconnects (PNI) or wavelength services to the primary North American cloud hub in Ashburn, Virginia.
Internet Exchange Points (IXPs) Public peering is limited within the state. Most network interconnection is handled privately or through regional IXPs in major nearby markets like Philadelphia.
Bare Metal Bare metal server options are available, typically from providers serving the broader Philadelphia and Mid-Atlantic region. Companies like Hivelocity and ColoCrossing can service deployments in the area, offering dedicated compute for performance-sensitive applications.
Power Analysis
Average Cost Of Power Industrial electricity rates in Delaware typically range from $0.11 to $0.13/kWh as of September 2025. This pricing is competitive for the region and reflects a grid mix that relies heavily on natural gas (83% as of 2024).
Power Grid Reliability The power grid is well-engineered to support the state's commercial and industrial corridors. Data centers in the region are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Delaware data centers are strategically positioned to serve the corporate headquarters and financial services industries in Wilmington. They also offer low-latency access to the major business districts of Philadelphia, Baltimore, and Washington, D.C.
Regional Market Reach An infrastructure deployment in Delaware can effectively serve the entire Mid-Atlantic region, reaching tens of millions of end-users with low latency. It is an excellent location for content delivery, application acceleration, and business continuity.
Tax Advantage For Data Centers The most significant financial benefit is Delaware's 0.00% state sales tax. This policy provides substantial savings on capital expenditures for servers, networking gear, and software licenses, lowering the overall cost of a deployment.
Natural Disaster Risk
Delaware has a High natural disaster risk profile, with a FEMA National Risk Index score of 92.94 as of September 2025. The state's coastal location makes it susceptible to Atlantic weather systems.
Key risks include hurricanes, coastal and riverine flooding, strong winds, ice storms, and winter weather. While modern data centers are built to withstand these events, a thorough disaster recovery plan that includes geographic redundancy is essential.
