Data Centers in Maryland

Maryland, USA – Strategic Mid-Atlantic Hub

Maryland offers a compelling alternative to the congested Northern Virginia market, providing robust connectivity and significant tax incentives for data center operators. It is an ideal location for enterprises and government agencies requiring low-latency connections to Washington D.C. and Baltimore while mitigating the high costs and disaster risks concentrated in Ashburn.

Maryland, USA: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Maryland is home to over 13 network providers, with dense fiber routes along the I-95 corridor connecting Baltimore and the Washington D.C. suburbs. The state features 25 colocation facilities, most offering carrier-neutral interconnection, as of September 2025.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Maryland as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via dedicated, low-latency fiber routes to the massive interconnection hubs in Northern Virginia.

Internet Exchange Points (IXPs): While smaller regional exchanges exist, most peering is conducted privately or through the massive exchange points in Ashburn and Reston, Virginia. This ensures efficient traffic exchange with national and international networks.

Bare Metal: Bare metal server options are available from providers operating within the state, offering dedicated compute resources for performance-sensitive applications. Options include services from providers like Hivelocity and ColoCrossing.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Maryland typically range from $0.11 to $0.13 per kWh, as of September 2025. These competitive rates, when combined with tax incentives, can significantly lower total operational costs compared to other major markets.

Power Grid Reliability: The power grid, particularly in the key data center corridors between Baltimore and Washington D.C., is well-engineered and supported by a diverse generation mix. The state's energy portfolio consists of approximately 60% natural gas, 30% nuclear, and 10% from coal and renewables, providing a reliable foundation for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Maryland provide low-latency access to the major business districts of Baltimore and Washington D.C. This makes the state a prime location for government contractors, financial services firms, and biotech companies that require proximity to federal agencies and commercial hubs.

Regional Market Reach: Maryland serves as a strategic digital gateway to the entire Mid-Atlantic region. Its infrastructure can effectively deliver services to a population of tens of millions, from Philadelphia down to Richmond, with excellent network performance.

Tax Advantage For Data Centers: Maryland offers a valuable sales and use tax exemption on the purchase of qualified data center equipment. This incentive directly reduces the significant capital expenditure required to build or expand a data center, improving the financial return on the investment.

Natural Disaster Risk

Maryland has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.7 out of 100, as of September 2025. This rating is driven by its exposure to Atlantic weather systems and other regional hazards.

Key risks for data center planning include hurricanes, strong winds, lightning, winter weather, and riverine flooding. While the overall risk score is high, careful site selection in areas with proper elevation and infrastructure hardening can effectively mitigate these threats.