Data Centers in Melbourne
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Melbourne, Florida – Resilient & Cost-Effective Colocation
Melbourne is a strategic data center market for businesses requiring a presence on Florida's Space Coast and for those seeking a disaster recovery location outside the primary Miami hub. It provides a compelling mix of exceptionally low power costs and a favorable tax climate, lowering operational expenditures while maintaining solid connectivity to the greater Florida market.
Melbourne, Florida: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, less dense than the primary Florida hub in Miami. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Miami; private network extensions are readily available. |
| Power Cost | $0.06/kWh (Industrial), as of September 2025 | Significantly lower than the national average, a key operational cost advantage. |
| Disaster Risk | High (FEMA NRI Score: 87.72), as of September 2025 | Primary risks include hurricane, flooding, and tornado events. Diligence is required. |
| Tax Incentives | Yes | Multiple state-level sales and ad valorem tax exemptions are available for data centers. |
| Sales Tax | 6.00% (State), as of Midyear 2025 | Local taxes may apply. Data center-specific exemptions reduce this burden. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Connectivity is concentrated, with at least 2 providers available in the metro, as of September 2025. Local data centers operate on a carrier-neutral basis, allowing interconnection with the providers of your choice.
Direct Cloud On-Ramps: Melbourne has no direct cloud on-ramps as of September 2025. The nearest major access hubs are in Miami, which are reachable via dedicated private network interconnects like point-to-point fiber or wavelength services.
Internet Exchange Points (IXPs): Public peering is not available directly within Melbourne. Most traffic exchange occurs through private peering or via the FL-IX in Miami, the state's primary and most vital peering point.
Bare Metal: Bare metal services are available from providers with a significant Florida presence, such as Hivelocity, enabling scalable compute deployments without capital investment.
Power Analysis
Average Cost Of Power: The industrial power rate of approximately $0.06/kWh is exceptionally competitive for Florida and the nation, as of September 2025. This directly lowers the total cost of ownership for high-density compute and large-scale infrastructure.
Power Grid Reliability: The power grid serving the Melbourne area is well-engineered to support local commercial and industrial requirements. Data centers in the region typically secure power from redundant substations to ensure high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Melbourne provide low-latency connectivity to Florida's Space Coast. This serves the aerospace, defense, and technology companies central to the region, including the Kennedy Space Center complex and related contractors.
Regional Market Reach: Melbourne is a strategic location for serving Central and South Florida while avoiding the higher operational costs and hurricane risks of the Miami market. It functions as a capable disaster recovery site for Miami-based operations.
Tax Advantage For Data Centers: Florida offers significant financial incentives, including sales and use tax exemptions on equipment and electricity for qualifying data centers. These state-level programs reduce both the initial capital outlay and ongoing operational expenses for tenants.
Natural Disaster Risk
Melbourne has a High natural disaster risk profile, with a FEMA National Risk Index score of 87.72, as of September 2025. The primary threats are driven by its coastal location and regional climate. Key risks for data center evaluation include Hurricane, Tornado, Lightning, and Riverine Flooding.
