Data Centers in Wilmington
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Wilmington – A Tax-Neutral Mid-Atlantic Hub
Wilmington, Delaware provides a compelling colocation market for businesses focused on financial, legal, and corporate services. Its primary advantage is financial: the complete absence of sales tax on IT hardware offers a significant cost reduction for large-scale deployments. While not a primary interconnection hub, its strategic location in the densely populated Northeast corridor ensures reliable, low-latency connectivity to major markets like Philadelphia, New York, and Ashburn.
Wilmington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional connectivity, though not a major international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access cloud providers via nearby Philadelphia or private network extensions. |
| Power Cost | $0.10 – $0.12/kWh | Industrial power costs are competitive for the Mid-Atlantic region. |
| Disaster Risk | High (NRI Score: 92.94) | Main risks are hurricane winds, severe storms, and related flooding. |
| Tax Incentives | No | Delaware does not offer specific data center incentive programs. |
| Sales Tax | 0.00% – as of mid-2025 | No state or local sales tax on equipment purchases. |
Network & Connectivity Ecosystem
Wilmington offers solid regional connectivity, serving as a secondary market to the major interconnection hubs of the Northeast.
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Carrier Density & Carrier Neutrality: The market includes over 5 carriers as of September 2025, with facilities offering carrier-neutral interconnection options.
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Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Wilmington. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network extensions to nearby hubs, primarily Philadelphia and Ashburn, VA.
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Internet Exchange Points (IXPs): Public peering is limited within Wilmington itself. Most network peering is conducted privately or through major exchanges in Philadelphia, improving regional performance.
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Bare Metal: Bare metal server options are available, with providers like Hivelocity offering services that connect into the regional ecosystem.
Power Analysis
Delaware's power infrastructure is reliable, though it lacks the scale of larger data center markets.
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Average Cost Of Power: Industrial electricity rates are estimated between $0.10 and $0.12 per kWh as of September 2025. This competitive pricing can lower operational expenses for compute-heavy deployments. The state's power mix is dominated by natural gas (83% as of 2024), ensuring stable generation.
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Power Grid Reliability: The power grid supporting the Wilmington area is well-engineered for business continuity. Data center operators leverage this reliability to deliver high levels of uptime for mission-critical applications.
Market Access, Business & Tax Climate
Delaware’s business-friendly environment, led by its tax structure, is a primary driver for colocation.
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Proximity To Key Business Districts: Data centers in Wilmington serve the state's massive financial services, legal, and pharmaceutical industries. The city is known as the corporate capital of the United States due to its accommodating corporate law.
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Regional Market Reach: Strategically located on the I-95 corridor, Wilmington provides low-latency access to the massive economic regions of Philadelphia, Baltimore, Washington D.C., and New York City.
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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 equipment purchases, generating substantial savings on capital expenditures.
Natural Disaster Risk
Based on FEMA data, Wilmington has a high natural disaster risk profile, with an NRI Score of 92.94 out of 100 as of September 2025.
The primary risks stem from severe weather events common to the Atlantic coast. Key hazards include hurricanes, severe storms bringing strong winds and lightning, coastal and riverine flooding, and winter weather. Other notable risks include heatwaves and drought. Facility selection should prioritize providers with demonstrated mitigation strategies for these events.
