Data Centers in Maryland

Maryland, USA – Strategic Mid-Atlantic Colocation Hub

Maryland offers a compelling data center market for enterprises and government agencies seeking a strategic location between Northern Virginia and the Northeastern United States. With a strong connectivity ecosystem and specific tax advantages, it provides a resilient alternative for production workloads and disaster recovery, ensuring high-speed access to the major East Coast economic centers.

Maryland: At A Glance

Network & Connectivity Ecosystem

Maryland benefits from its strategic position adjacent to one of the world's most important internet hubs in Northern Virginia. The state has a dense and competitive connectivity landscape.

Carrier Density & Carrier Neutrality: With over 13 network providers operating in the state as of September 2025, customers have ample choice for transit, transport, and dark fiber services in carrier-neutral facilities.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Maryland. The primary access point for dedicated cloud interconnection is the neighboring Ashburn, Virginia market, which is readily accessible via low-latency private network extensions like PNI or wavelength services.

Internet Exchange Points (IXPs): While most large-scale peering occurs in Ashburn, local IXPs facilitate regional traffic exchange, improving performance for local end-users. Private peering is the dominant interconnection method within Maryland data centers.

Bare Metal: Bare metal server options are available from providers in the region, offering dedicated compute for performance-sensitive applications. Hivelocity and ColoCrossing are examples of providers serving the broader East Coast market.

Power Analysis

Maryland's power infrastructure is well-established, supporting critical government and enterprise operations throughout the state.

Average Cost Of Power: Industrial electricity rates generally fall between $0.09 and $0.12/kWh as of September 2025. This pricing makes it a competitive location for compute infrastructure relative to other major Northeastern markets. The grid mix is dominated by natural gas (~60%) and nuclear (~30%).

Power Grid Reliability: The electrical grid serving the primary data center clusters around Baltimore and counties near Washington, D.C. is well-engineered. Facilities in these areas typically have redundant feeds from multiple substations to support high-uptime requirements.

Market Access, Business & Tax Climate

Maryland's location, combined with a favorable business climate for technology, creates a strong value proposition for data center operators and their customers.

Proximity To Key Business Districts: Data centers in Maryland provide low-latency connectivity to the business districts of Baltimore and Washington, D.C. This proximity is critical for federal agencies, defense contractors, and biotechnology firms concentrated in the region.

Regional Market Reach: From Maryland, organizations can effectively serve a massive population base across the Mid-Atlantic and Northeast, reaching from Richmond to Philadelphia and New York City with minimal network delay.

Tax Advantage For Data Centers: Maryland offers a specific sales and use tax exemption for qualifying data center equipment. This incentive significantly reduces the capital expenditure required for deploying or expanding IT infrastructure, lowering the total cost of ownership.

Natural Disaster Risk

Maryland has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.67 as of September 2025. Site selection and infrastructure design are key to mitigating these potential threats.

The primary risks to consider include meteorological events common to the East Coast. The most significant hazards are hurricanes, strong wind, coastal and riverine flooding, winter weather, and lightning. Other risks like tornadoes and wildfires are present but less frequent threats to hardened data center facilities.