Data Centers in West Palm Beach
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West Palm Beach – Strategic South Florida Colocation
Executive Summary
West Palm Beach provides a strategic colocation option for businesses serving the affluent South Florida corridor. It offers a viable alternative to the primary Miami market, balancing cost, connectivity, and proximity to a rapidly growing commercial and residential population. This position ensures low-latency service delivery and a resilient footprint for mission-critical applications.
West Palm Beach: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, with good access to regional carriers. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hub is Miami. Private network extensions are readily available. |
| Power Cost | $0.06/kWh – as of February 2024 | Significantly lower than the national average, providing a key operational cost advantage. |
| Disaster Risk | High (87.72 NRI Score) – as of September 2025 | Risk profile is driven by hurricane and severe storm exposure common to the region. |
| Tax Incentives | Yes | Multiple DC-specific sales and ad valorem tax exemptions are available for qualifying projects. |
| Sales Tax | 6.00% (Florida State) – as of September 2025 | Local and county taxes may apply in addition to the statewide rate. |
Network & Connectivity Ecosystem
West Palm Beach serves as a capable secondary connectivity hub in South Florida, leveraging its proximity to the primary interconnection points in Boca Raton and Miami.
Carrier Density & Carrier Neutrality Carrier access is available from at least 3 providers within the 2 local data centers, as of September 2025. This provides foundational options for redundancy and network blending, though large-scale carrier density is found further south in Miami.
Direct Cloud On-Ramps As of September 2025, there are no direct public cloud on-ramps in West Palm Beach. The nearest interconnection hub is Miami, where all major cloud providers have a presence. Secure, private connections to these clouds are available via dedicated circuits and partner networks.
Internet Exchange Points (IXPs) Public peering is concentrated at the Florida Internet Exchange (FL-IX) in nearby Boca Raton and Miami. Most peering from West Palm Beach facilities is handled privately or by routing traffic to these regional hubs.
Bare Metal Bare metal services are available from providers within the region, offering dedicated compute for performance-sensitive workloads. Hivelocity is one example of a provider serving the Florida market.
Power Analysis
Average Cost Of Power The industrial power rate in the region is approximately $0.06/kWh, as of February 2024. This competitive rate offers a significant operational cost advantage compared to other major US markets. The regional power mix is dominated by natural gas (around 74%) and nuclear (about 17%).
Power Grid Reliability The regional power grid is engineered to withstand tropical storm conditions. Data center operators in the area typically leverage redundant feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in West Palm Beach are well-positioned to serve Palm Beach County's key industries, including finance, healthcare, and logistics. This proximity enables low-latency services for local enterprise and government clients.
Regional Market Reach The market provides effective coverage for the entire South Florida metropolitan area, from the Treasure Coast down to Broward County. This reach connects infrastructure to a high-income consumer and business population.
Tax Advantage For Data Centers Florida offers significant financial incentives, including a sales tax exemption on equipment and an ad valorem tax exemption on certain data center property. These programs reduce the upfront capital expenditure and ongoing operational tax burden for qualifying facilities.
Natural Disaster Risk
West Palm Beach has a High natural disaster risk profile, with a National Risk Index score of 87.72, as of September 2025. The primary threats are driven by its coastal location and climate, including significant risks from hurricanes, lightning, tornadoes, and riverine flooding. All modern data centers in the area are built to exceed local building codes for wind and flood resistance.
