Data Centers in Annapolis
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Annapolis – Strategic Mid-Atlantic Colocation
Annapolis provides a specialized colocation market for organizations supporting government and enterprise sectors within the Baltimore-Washington metropolitan area. Its primary advantage is its strategic location, offering a viable disaster recovery or secondary site to the primary data center hub in Northern Virginia. This positioning ensures low-latency connections to major federal and commercial operations while maintaining geographic separation.
Annapolis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, reliant on nearby major hubs for global reach. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Proximity to Ashburn, VA provides extensive options via private network links. |
| Power Cost | ~$0.11-0.13/kWh | Natural gas and nuclear power provide a stable and predictable energy supply. |
| Disaster Risk | High (93.67) – as of September 2025 | Primarily driven by hurricane, storm surge, and flooding events. |
| Tax Incentives | Yes | Data Center Sales & Use Tax Exemption program available statewide. |
| Sales Tax | 6.00% – as of September 2025 | Standard Maryland state sales tax rate. |
Network & Connectivity Ecosystem
The Annapolis market is a satellite to the hyper-dense Northern Virginia ecosystem. While local options are sufficient for regional applications, most high-performance and global connectivity is sourced from nearby Ashburn, VA.
Carrier Density & Carrier Neutrality: The market contains over 2 providers, as of September 2025. Connectivity is concentrated, with access to regional and national carriers suitable for enterprise and government workloads.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Annapolis, as of September 2025. All major cloud providers are accessible via dedicated fiber or wavelength services to interconnection hubs in Ashburn, VA, which hosts the world's largest concentration of on-ramps.
Internet Exchange Points (IXPs): Public peering is not a feature of the Annapolis market. The majority of peering is conducted privately or sourced from the numerous IXPs located in Northern Virginia, such as DE-CIX Ashburn and Equinix Ashburn.
Bare Metal: Bare metal server availability is good, with providers offering services from nearby data center hubs. Options include deployments from providers like Hivelocity and phoenixNAP in the broader Mid-Atlantic region.
Power Analysis
Maryland's power infrastructure is robust, benefiting from its position within the well-established PJM Interconnection grid, one of the largest and most reliable in North America.
Average Cost Of Power: Industrial electricity rates in the Annapolis area are estimated to be between $0.11 and $0.13 per kWh, as of September 2025. This competitive pricing is driven by a favorable generation mix dominated by natural gas and nuclear power.
Power Grid Reliability: The grid serving the region is well-engineered, with significant investment in redundancy to support government and critical infrastructure. Data centers typically have access to power from multiple substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Annapolis offers a unique blend of government proximity and favorable business conditions, making it an attractive secondary location in the Mid-Atlantic.
Proximity To Key Business Districts: The market is strategically located between Baltimore and Washington, D.C. This provides low-latency access to federal government agencies, military bases like Fort Meade (home to the NSA), and a large ecosystem of defense and technology contractors.
Regional Market Reach: From Annapolis, digital services can effectively reach the entire Baltimore-Washington metropolitan area, a population of nearly 10 million people. It serves as an excellent edge location or disaster recovery site for operations centered in Northern Virginia.
Tax Advantage For Data Centers: Maryland offers a significant sales and use tax exemption for qualifying data center equipment. This incentive lowers the total cost of ownership for hardware refreshes and new infrastructure deployments, making capital investment more efficient.
Natural Disaster Risk
Annapolis has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.67, as of September 2025. The risk is heavily weighted towards weather-related events common to the Atlantic coast.
Key risks include hurricanes, coastal and riverine flooding, severe wind events (including tornadoes), and winter storms. Other notable risks are lightning, hail, and heatwaves. While earthquake risk is present, it is significantly lower than the primary weather-related hazards.
