Data Centers in Annapolis
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Annapolis – Secure Infrastructure for Federal Proximity
Executive Summary
Annapolis serves as a strategic, resilient alternative to the high-density Northern Virginia corridor. It provides mission-critical proximity to federal agencies and cybersecurity hubs without the operational congestion found in larger markets. This location is a strong choice for disaster recovery and government-adjacent workloads requiring high availability and specific regional tax advantages.
Annapolis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional access with links to major hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Primary access via Ashburn and Northern Virginia. |
| Power Cost | $0.09/kWh, as of September 2025 | Conservative estimate for Maryland industrial users. |
| Disaster Risk | High (93.67), as of September 2025 | Based on regional FEMA risk indexing. |
| Tax Incentives | Yes | Sales and use tax exemptions for data centers. |
| Sales Tax | 6.00%, as of September 2025 | Standard Maryland state sales tax. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 10. This market maintains a consistent presence of ~10–20 carriers as of September 2025. Local facilities provide the necessary fiber density to support diverse routing for enterprise and government clients.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. Physical on-ramps for AWS, Google Cloud (GCP), and Microsoft Azure are located in the nearby Ashburn hub as of September 2025. Organizations in this market typically utilize private network extensions or wave services to maintain low-latency connections to these providers.
Internet Exchange Points (IXPs): Most local traffic peers privately or connects via the primary national exchange points in Northern Virginia. This ensures high-speed throughput while keeping local infrastructure lean.
Bare Metal: Infrastructure services are available through specialized providers such as Hivelocity and Latitude.sh as of September 2025. These options allow for rapid deployment of dedicated hardware without the overhead of managing a full suite of physical gear.
Power Analysis
Average Cost Of Power: Industrial electricity costs are approximately $0.09/kWh, as of September 2025. This rate provides predictable operational costs compared to more volatile coastal markets.
Power Grid Reliability: The local grid is supported by a multi-substation architecture and a diverse generation mix including natural gas and nuclear sources. This creates a reliable environment for high-density computing and mission-critical applications as of September 2025.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in this region are situated near the Maryland state capital and the Fort Meade corridor. This provides essential proximity for government contractors and cybersecurity firms requiring low-latency access to federal agencies.
Regional Market Reach: This location effectively serves the entire Baltimore-Washington metropolitan area. It reaches millions of users with sub-millisecond latency, making it a viable hub for regional service delivery.
Tax Advantage For Data Centers: Maryland provides a specific Sales and Use Tax Exemption Incentive Program for qualified data center equipment and power. This benefit significantly reduces the total cost of ownership for long-term deployments as of September 2025.
Natural Disaster Risk
High (93.67 percentile), as of September 2025. The primary natural hazards in this region include Hurricanes, Ice Storms, Lightning, Riverine Flooding, and Strong Winds. While coastal flooding is a factor due to the proximity of the Chesapeake Bay, most facilities are purpose-built with elevated infrastructure to mitigate direct water ingress. Other risks like tornadoes and wildfires are present but considered secondary to seasonal storm patterns. Organizations should prioritize facilities with hardened exteriors and redundant cooling systems to manage these environmental factors.
