Data Centers in West Palm Beach
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West Palm Beach – Strategic Florida Edge Computing Hub
West Palm Beach serves as a key edge market for South Florida, providing low-latency connectivity to a major economic and population center. For businesses requiring high-performance infrastructure without the density of Miami, it offers a compelling balance of cost, connectivity, and favorable tax incentives. This location is ideal for content delivery, disaster recovery, and serving the growing commercial and residential base of the region.
West Palm Beach: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity; relies on Miami for most international and Tier-1 peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is available via private network extension to Miami hubs. |
| Power Cost | $0.06/kWh (Industrial) – as of February 2024 | Competitive rates in a market with a natural gas-heavy generation mix. |
| Disaster Risk | High (NRI Score: 87.72) – as of September 2025 | Primary risks are hurricane, lightning, and riverine flooding. Mitigation is essential. |
| Tax Incentives | Yes | Multiple state-level sales and ad valorem tax exemptions are available for data centers. |
| Sales Tax | 6.00% (Florida State) – as of September 2025 | Additional local taxes may apply; data center-specific exemptions are available. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: West Palm Beach provides access to over 3 providers in local data centers, with significantly more carrier options available through network extensions to Miami's primary interconnection hubs. As of September 2025, the facilities in this market are carrier-neutral, offering choice in connectivity.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within West Palm Beach, as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established via dedicated circuits to facilities in Miami.
Internet Exchange Points (IXPs): Public peering is not a major feature of the West Palm Beach market. Most interconnection and peering occurs privately between carriers or through the Florida Internet Exchange (FL-IX) located in Miami.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute for performance-sensitive applications. Providers such as Hivelocity offer services accessible from the West Palm Beach area.
Power Analysis
Average Cost Of Power: The industrial power rate in the region is approximately $0.06/kWh, as of February 2024. This competitive pricing can significantly reduce operational expenditures for compute-heavy deployments. The state's power mix is dominated by natural gas (74%), with nuclear (17%) providing a stable baseload.
Power Grid Reliability: Florida's power grid is engineered to withstand severe weather, a necessity given the hurricane risk. Data centers in the West Palm Beach area benefit from this resilient infrastructure, often featuring connections to multiple substations and significant on-site N+1 or 2N redundant power systems.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in West Palm Beach are well-positioned to serve the financial, healthcare, and professional services industries in Palm Beach County. Proximity enables low-latency performance for local business operations and end-users.
Regional Market Reach: The market provides effective, low-latency coverage for the entire Gold Coast metropolitan area, from Port St. Lucie to Fort Lauderdale. It acts as an excellent edge location for content and applications targeting South Florida's millions of residents.
Tax Advantage For Data Centers: Florida offers significant tax incentives that lower the total cost of ownership for data center operators and tenants. These exemptions on sales and ad valorem taxes for equipment make capital investments more efficient and financially attractive.
Natural Disaster Risk
West Palm Beach has a High natural disaster risk profile, with a FEMA National Risk Index score of 87.72, as of September 2025. The environment demands that data centers are built to stringent standards for structural integrity and operational continuity.
Key risks for the area include:
- Hurricane
- Lightning
- Tornado
- Riverine Flooding
- Drought
- Wildfire
