Data Centers in Wilmington
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Wilmington – Tax-Advantaged East Coast Colocation
Wilmington provides a strategic data center location for businesses focused on cost control and serving the mid-Atlantic corridor. Its primary advantage is Delaware's 0% sales tax, which delivers significant savings on large hardware purchases. While not a major connectivity hub, it offers a compelling financial alternative to nearby markets like Philadelphia and Ashburn for disaster recovery or latency-tolerant applications.
Wilmington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, but lacks the density of primary national hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available to the nearest major hub in Ashburn, VA. |
| Power Cost | $0.11 - $0.13/kWh, as of April 2024 | Competitive pricing for the region, powered primarily by natural gas. |
| Disaster Risk | High (92.94 NRI Score), as of September 2025 | High exposure to coastal and weather-related events requires resilient infrastructure. |
| Tax Incentives | No | Delaware does not offer specific data center tax incentive programs. |
| Sales Tax | 0.00% Sales Tax, as of July 2025 | A major financial benefit, eliminating sales tax on all equipment purchases. |
Network & Connectivity Ecosystem
Wilmington serves as a secondary market, relying on larger hubs for high-performance connectivity.
- Carrier Density & Carrier Neutrality: The market contains over 5 network providers as of September 2025. Carrier-neutral facilities provide access to regional and national backbones, though with less choice than in primary markets.
- Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Wilmington as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated network extensions to the primary hub in Ashburn, VA.
- Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most interconnection is handled privately or routed through major exchange points in Philadelphia or Ashburn.
- Bare Metal: Bare metal server options are available from providers with a presence in the region, including companies like Hivelocity, enabling dedicated compute without capital expenditure.
Power Analysis
Delaware's power infrastructure is reliable, with costs that are competitive for the U.S. East Coast.
- Average Cost Of Power: Industrial electricity rates generally fall between $0.11 and $0.13 per kWh, as of April 2024. This pricing offers a predictable operational expense for compute-heavy deployments.
- Power Grid Reliability: The power grid supporting the Wilmington area is well-engineered for business needs. Data center operators leverage redundant feeds and multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Wilmington's business environment is defined by its strategic location and favorable tax structure.
- Proximity To Key Business Districts: Data centers in Wilmington are well-positioned to serve Delaware's large financial services, insurance, and corporate legal sectors. The location also provides low-latency access to the entire Philadelphia metropolitan area.
- Regional Market Reach: From Wilmington, organizations can effectively serve a large population spanning from Washington, D.C. to New York City. It is a strong location for disaster recovery sites for businesses homed in either of those primary markets.
- Tax Advantage For Data Centers: The most significant financial benefit is Delaware's 0% sales tax. This policy allows companies to purchase servers, networking gear, and other data center hardware without incurring any state or local sales tax, drastically reducing capital expenses.
Natural Disaster Risk
Wilmington has a High natural disaster risk profile, with a FEMA National Risk Index score of 92.94 as of September 2025. The geography dictates a focus on mitigating weather and coastal-related events. Key risks include hurricanes, coastal and riverine flooding, strong winds, and severe winter storms. Data center selection in this market requires careful evaluation of facility resilience, elevation, and flood zone status.
