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Data Centers in Delaware

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Delaware – Strategic Mid-Atlantic Reach with Zero Sales Tax

Delaware is a strategic secondary market for enterprises needing low latency across the Northeast Corridor without the overhead of Tier 1 cities. It serves as a vital bridge between Philadelphia and Washington, D.C., offering significant capital expenditure savings for compute-heavy deployments. Organizations choose this market to maximize operational budgets while maintaining high-performance regional connectivity.

Delaware: At A Glance

FactorRating / DataNotes
Global Connectivity GradeB. Reliable regional links.Reliable performance within the Mid-Atlantic as of September 2025.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hubs are Philadelphia and Northern Virginia.
Power Cost$0.08 – $0.12/kWh, as of September 2025Pricing remains competitive with natural gas generation.
Disaster RiskHigh (92.93/100), as of September 2025Primary concerns involve high-wind events and riverine flooding.
Tax IncentivesNoDelaware does not offer specific statewide data center programs.
Sales Tax0.00%, as of September 2025Zero sales tax reduces capital expenditure on server hardware.

Network & Connectivity Ecosystem

Delaware provides a sturdy infrastructure base for regional distribution and disaster recovery.

Carrier Density & Carrier Neutrality The market features a carrier count of over 5 distinct providers as of September 2025. Major facilities in Wilmington and Newark offer access to national fiber backbones, including networks operated by Verizon and Lumen. This ensures resilient connectivity for local corporate environments.

Direct Cloud On-Ramps There are 0 direct cloud on-ramps in Delaware as of September 2025. Enterprises typically connect to AWS, Google Cloud (GCP), and Microsoft Azure via private transport or high-speed waves to Philadelphia or the Ashburn hub. These links provide sub-millisecond performance for hybrid cloud architectures.

Internet Exchange Points (IXPs) Public internet exchanges are limited within the state, meaning most peering traffic is routed through the Philadelphia area. This setup allows for efficient traffic exchange while maintaining a lower physical footprint in the Delaware market as of September 2025.

Bare Metal Bare metal services are available through regional providers such as ColoCrossing and Hivelocity as of September 2025. These options allow for rapid deployment of dedicated hardware without the management overhead of full rack ownership.

Power Analysis

Delaware’s energy market is characterized by stable generation and industrial-scale availability.

Average Cost Of Power The cost for industrial electricity is approximately $0.08 – $0.12/kWh as of September 2025. The generation mix is dominated by natural gas, which accounted for roughly 83% of the state's power in 2024. This reliance on gas helps maintain predictable pricing compared to regions with higher volatility in renewable mandates.

Power Grid Reliability The power grid is well-engineered to support the industrial and corporate corridors in Wilmington and Newark. Redundant substation configurations provide a reliable foundation for data center operations, ensuring steady uptime for critical financial and legal infrastructure as of September 2025.

Market Access, Business & Tax Climate

Delaware’s business climate is defined by its long-standing status as a corporate and financial haven.

Proximity To Key Business Districts Facilities are strategically placed near the Wilmington business district, which is home to a high concentration of banking, legal, and insurance firms. This proximity is vital for applications requiring low latency to the financial backend systems that drive the local economy as of September 2025.

Regional Market Reach The state provides effective coverage for the high-density Mid-Atlantic population. It serves as an ideal edge location for reaching users in the Philadelphia metropolitan area and the northern Baltimore suburbs within a tight latency window.

Tax Advantage For Data Centers The lack of a state sales tax is the most significant financial benefit for data center tenants in Delaware as of September 2025. This exemption applies directly to large-scale equipment purchases, allowing companies to deploy more compute power for every dollar spent compared to neighboring states.

Natural Disaster Risk

The natural disaster risk for Delaware is rated as High (92.93/100) as of September 2025. While the state is geologically stable, its geography makes it susceptible to atmospheric events.

The most material risks for the region include:

  • Riverine Flooding: A significant concern for facilities near the Delaware River and its tributaries.
  • Hurricanes: Late-season tropical systems can bring heavy rain and storm surges.
  • Strong Winds: High-velocity wind events are a regular occurrence during seasonal shifts.
  • Tornadoes: Although less frequent than in the Midwest, localized tornadic activity remains a factor.
  • Lightning: Frequent summer storms require resilient grounding and surge protection systems.
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