Data Centers in Melbourne
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Melbourne, Florida – Cost-Effective Florida Colocation
Executive Summary
Melbourne, Florida, is a developing colocation market suited for businesses requiring cost-effective infrastructure on Florida's Space Coast. It provides a solid alternative to the pricier and more saturated Miami and Orlando markets, delivering favorable power costs and significant tax incentives. This location is ideal for secondary disaster recovery sites or serving regional commercial and aerospace industries.
Melbourne: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity, though not a primary international hub like Miami. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Closest on-ramps are in Miami. Private network extensions provide dedicated cloud access. |
| Power Cost | $0.06/kWh (Industrial) – as of February 2024 | Very competitive power pricing, significantly lower than many other Florida markets. |
| Disaster Risk | High (87.72) – as of September 2025 | Primarily exposed to hurricane, lightning, and flood risks common to the region. |
| Tax Incentives | Yes | Multiple data center-specific sales and ad valorem tax exemptions are available. |
| Sales Tax | 6.00% (Florida) – as of September 2025 | State-level sales tax, with specific exemptions applicable to data center equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market supports a focused carrier ecosystem with access to over 2 providers, as of September 2025. Carrier-neutral facilities provide necessary redundancy for local and regional business operations.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Melbourne, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via private network links to major interconnection hubs in Miami or Orlando.
Internet Exchange Points (IXPs): Public peering is limited in Melbourne. Most network peering is conducted privately between carriers or through connections to the Florida Internet Exchange (FL-IX) in Miami.
Bare Metal: Bare metal server options are available through providers that can deploy into the region. Global providers like Hivelocity offer solutions suitable for workloads requiring dedicated hardware.
Power Analysis
Average Cost Of Power: The industrial power rate in the region is approximately $0.06/kWh, as of February 2024. This highly competitive pricing offers a significant operational cost advantage compared to national averages, directly impacting total cost of ownership for compute-heavy deployments.
Power Grid Reliability: Florida's power grid is engineered to withstand severe weather events. Data centers in the Melbourne area are typically supported by redundant power feeds from multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Melbourne serve the Space Coast, a region dominated by aerospace, defense, and high-tech manufacturing industries. Proximity enables low-latency connectivity for these critical sectors.
Regional Market Reach: The market effectively serves Central and East Florida, providing a viable disaster recovery location for businesses with a primary presence in Orlando or South Florida.
Tax Advantage For Data Centers: Florida offers compelling, long-term tax exemptions specifically for data centers. These incentives cover sales tax on equipment purchases and ad valorem taxes, reducing both initial capital expenses and ongoing operational costs.
Natural Disaster Risk
Melbourne has a high natural disaster risk profile, with a FEMA National Risk Index score of 87.72 out of 100, as of September 2025. The primary threats are driven by its coastal location and climate. Key risks include hurricanes, lightning, tornadoes, riverine flooding, and wildfire. While the risk score is high, modern data centers are built to specific hurricane-resistant standards to mitigate these threats.
