Data Centers in Maryland

Maryland – Secure Proximity for Federal and Commercial Growth

Maryland: A Strategic Hub for Compliance and Security

Maryland is the primary choice for enterprises requiring immediate physical access to federal agencies and the Baltimore business corridor. It offers a resilient, lower-congestion alternative to Northern Virginia while maintaining low latency to the Atlantic fiber backbone. This market is built for security-conscious organizations that prioritize compliance and reliable uptime for high-stakes workloads.

Maryland: At A Glance

Network & Connectivity Ecosystem

Maryland provides a mature environment for organizations that need to bridge the gap between national fiber routes and local government hubs. Date every number (as of December 2025).

Carrier Density & Carrier Neutrality: Carrier count: over 13. The market supports a mature ecosystem of ~15–20 carriers as of December 2025. These providers offer diverse fiber routes along the I-95 corridor, ensuring competitive pricing and path redundancy for mission-critical traffic.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. While direct native on-ramps are concentrated in the Ashburn hub, Maryland facilities provide high-speed, low-latency private extensions to AWS and Microsoft Azure. This allows for hybrid cloud deployments without the physical overhead of being in Northern Virginia.

Internet Exchange Points (IXPs): Peering is primarily managed through private interconnects or by leveraging proximity to major exchanges in Northern Virginia and Washington DC. Local traffic often utilizes Baltimore-based nodes to minimize regional latency for the local healthcare and education sectors.

Bare Metal: Resilient bare metal services are widely available through providers such as Hivelocity and phoenixNAP. These options allow for high-performance compute and direct hardware control without the overhead of traditional virtualization.

Power Analysis

Maryland offers a stable power environment with pricing that reflects its position in the Mid-Atlantic energy market.

Average Cost Of Power: Industrial electricity ranges from $0.11 – $0.14/kWh as of December 2025. This pricing is competitive for the region, where the generation mix relies heavily on natural gas and nuclear power. Reliable energy costs allow for predictable operational budgeting for power-intensive AI and research workloads.

Power Grid Reliability: Maryland features a well-engineered grid with multi-substation support and redundant feeds in critical clusters like Silver Spring and Baltimore. Utilities prioritize uptime to support the high density of federal and healthcare workloads that cannot afford even momentary service interruptions.

Market Access, Business & Tax Climate

The state provides a business-friendly environment for companies that require physical presence near the nation's capital.

Proximity To Key Business Districts: Maryland data centers are positioned near federal agency headquarters, Baltimore financial hubs, and the growing cybersecurity sector. This location is vital for compliance-heavy industries requiring physical access to their equipment for audits or hands-on maintenance.

Regional Market Reach: The state provides a central distribution point for the Mid-Atlantic, serving millions of users between Philadelphia and Richmond. It acts as an essential edge location for content delivery and regional compute for the entire Chesapeake Bay region.

Tax Advantage For Data Centers: The state offers a specific sales and use tax exemption for qualified data center equipment and software. This program significantly reduces capital expenditure for large-scale deployments and recurring hardware refresh cycles.

Natural Disaster Risk

Risk Rubric: High (93.67) as of December 2025. Maryland faces environmental risks primarily linked to coastal weather patterns and its proximity to the Atlantic.

• Hurricane: High risk from coastal storms bringing heavy rain and wind.
• Strong Wind: Consistent seasonal storm fronts can impact infrastructure.
• Tornado: Historical risk across the central Maryland corridor.
• Ice Storm: Winter events challenge utility line resilience and site access.
• Coastal Flood: Material regional risk for facilities near the Chesapeake Bay or Baltimore harbor.