Data Centers in Wilmington
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Wilmington – Tax-Free East Coast Connectivity
Executive Summary
Wilmington serves as a strategic and cost-effective data center market for businesses requiring a Mid-Atlantic presence without the premium costs of nearby Ashburn or Philadelphia. The state's 0% sales tax provides a significant financial advantage for hardware-intensive colocation and bare metal deployments. This makes it a compelling choice for financial services, legal-tech, and enterprises focused on optimizing total cost of ownership.
Wilmington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but lacks the density of a primary Tier 1 market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to all major clouds is available via the primary hub in Ashburn, VA. |
| Power Cost | Approx. $0.11 - $0.13/kWh | Based on regional data from early 2024. |
| Disaster Risk | High (NRI Score: 92.9) | Primary risks include hurricane, flooding, and severe winter weather events. |
| Tax Incentives | No | No state-level incentives are specifically targeted for data center development. |
| Sales Tax | Delaware sales tax: 0.00% | A major financial benefit for equipment purchases, as of mid-2025. |
Network & Connectivity Ecosystem
Wilmington offers a capable connectivity ecosystem, serving as a secondary market to the major East Coast hubs. While not as dense as Ashburn, it provides reliable, low-latency access to the Eastern Seaboard.
Carrier Density & Carrier Neutrality With over 5 carriers present as of September 2025, Wilmington provides adequate network choice for most enterprise needs. The market includes two data centers offering carrier-neutral interconnection, ensuring competitive pricing and routing options.
Direct Cloud On-Ramps There are no direct, in-market cloud on-ramps as of September 2025. Secure, private connections to AWS, Google Cloud, Microsoft Azure, and others are established through dedicated network links to the primary interconnection hub in Ashburn, Virginia.
Internet Exchange Points (IXPs) Public peering is not a major feature of this market. Most network peering occurs privately between carriers or is routed through nearby IXPs in Philadelphia and Ashburn.
Bare Metal Bare metal server options are available from providers operating within the Wilmington market. Companies like Hivelocity and phoenixNAP can provide dedicated compute for workloads requiring direct hardware access.
Power Analysis
Average Cost Of Power Industrial power costs in the Wilmington area are approximately $0.11 - $0.13/kWh, as of early 2024. This pricing is competitive for the region and allows for predictable operational expense modeling for colocation deployments. The local grid is powered predominantly by natural gas.
Power Grid Reliability The power grid serving Wilmington's commercial districts is well-engineered and stable. Data center facilities typically have access to redundant power feeds from separate substations to support high-uptime requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Wilmington is a major center for the financial services, insurance, and legal industries. Data centers here provide low-latency connectivity to these core business districts, supporting sensitive applications for Fortune 500 companies headquartered in the city.
Regional Market Reach Strategically located on the I-95 corridor, Wilmington can effectively serve the Philadelphia, Baltimore, and Washington, D.C. metro areas. This makes it an excellent location for disaster recovery or for reaching a dense population center of over 15 million people.
Tax Advantage For Data Centers Delaware's most significant business advantage is its complete lack of a state sales tax. This provides a direct and substantial cost saving on all data center hardware purchases, from servers and switches to storage arrays.
Natural Disaster Risk
Wilmington has a High natural disaster risk profile, with a FEMA National Risk Index score of 92.9 as of September 2025. While facilities are built to modern resiliency standards, businesses should develop mitigation strategies for several key environmental threats. The primary risks for the area include hurricanes, coastal and riverine flooding, strong winds, and severe winter weather, including ice storms.
