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Data Centers in Maryland

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Maryland – Strategic Mid-Atlantic Data Center Hub

Executive Summary

Maryland is a critical data center market for organizations requiring low-latency connectivity to Washington D.C. and the surrounding federal and commercial ecosystems. It provides a compelling alternative to Northern Virginia, offering robust infrastructure and specific tax advantages that reduce the total cost of ownership. This market is ideal for government, defense, biotechnology, and enterprise clients prioritizing resilient operations near the nation's capital.

Maryland: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber density along the strategic I-95 corridor and proximity to Ashburn.
Direct Cloud On-Ramps0 – as of September 2025The nearest major hub is Ashburn, VA. Private network extensions are readily available.
Power Cost$0.09 – $0.11/kWhIndustrial electricity prices are competitive for the Mid-Atlantic region.
Disaster RiskHigh (93.67) – as of September 2025Risk profile is driven primarily by hurricane, flooding, and severe winter weather events.
Tax IncentivesYesMaryland offers a sales and use tax exemption for qualified data center equipment.
Sales Tax6.00% – as of July 2025This is the state-level sales and use tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Maryland's data centers offer access to over 13 network carriers, as of September 2025. The ecosystem supports carrier-neutral interconnection, providing reliable options for redundancy and creating a competitive marketplace for network services.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Maryland. The primary access point for all major cloud providers is the neighboring Ashburn, Virginia market, which is easily reachable via high-capacity, low-latency private network connections like PNI or metro waves.

Internet Exchange Points (IXPs): Public peering is limited within Maryland itself. Most network operators and enterprises establish peering relationships privately or connect to the massive exchange points in Ashburn, VA, to access the world's largest concentration of networks.

Bare Metal: Bare metal server options are available from providers serving the Mid-Atlantic region. Customers can find dedicated server solutions from vendors such as Hivelocity and ColoCrossing to support performance-sensitive applications.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Maryland typically range from $0.09 to $0.11 per kWh, as of September 2025. This competitive pricing structure makes large-scale deployments financially viable, particularly when combined with state tax incentives. The state's power mix is dominated by natural gas (~60%) and nuclear (~30%).

Power Grid Reliability: The electrical grid serving Maryland's primary data center corridors is well-engineered and reliable, benefiting from infrastructure built to support critical government and commercial operations. Major facilities feature redundant power feeds from multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Maryland are strategically located to serve the Baltimore-Washington metropolitan area. They offer low-latency connectivity to federal government agencies in Washington D.C., defense contractors, and the dense cluster of biotechnology and life sciences firms along the I-270 Technology Corridor.

Regional Market Reach: From Maryland, businesses can effectively serve a large and affluent population across the Mid-Atlantic, including Washington D.C., Baltimore, and Philadelphia. The location is a key logistical and digital hub for East Coast operations.

Tax Advantage For Data Centers: Maryland provides a significant financial incentive through its Data Center Sales & Use Tax Exemption Program. This program eliminates the 6% state sales tax on the purchase of qualified data center equipment, directly reducing capital expenditures for new builds and major hardware refreshes.

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. While the overall risk is elevated compared to the national average, it is a known quantity that modern data center designs are engineered to mitigate.

The primary risks for facilities in this region include:

  • Hurricane & Strong Wind
  • Coastal & Riverine Flooding
  • Winter Weather & Ice Storms
  • Severe Thunderstorms (Hail, Lightning)
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