Data Centers in Annapolis
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Annapolis – Reliable Colocation for the Capital Region
Executive Summary
Annapolis serves as a strategic colocation market for government agencies, contractors, and enterprises operating within the Baltimore-Washington corridor. Its primary advantage is providing a robust, lower-risk location for production and disaster recovery workloads that require proximity to the capital region without being inside the primary Ashburn market. This positioning ensures low-latency performance for critical local operations while benefiting from Maryland's favorable tax climate.
Annapolis: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though less dense than primary national hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud hub is Ashburn, VA; private network extensions are available. |
| Power Cost | $0.10 – $0.14/kWh, as of September 2025 | Costs are competitive for the Mid-Atlantic region. |
| Disaster Risk | High (93.67), as of September 2025 | Main risks include hurricane, coastal flooding, and strong wind events. |
| Tax Incentives | Yes | State-level sales and use tax exemptions for qualified data centers. |
| Sales Tax | 6.00%, as of July 2025 | Maryland state sales tax. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier density in Annapolis is limited, with a small number of providers available, as of September 2025. The market is better suited for deployments that do not require massive carrier diversity, relying instead on strategic connections to larger hubs.
Direct Cloud On-Ramps: Annapolis does not have direct cloud on-ramps, as of September 2025. The primary access point for dedicated cloud interconnection is Ashburn, Virginia, where all major cloud providers have a significant presence. Private network extensions can provide secure, low-latency access to these hubs.
Internet Exchange Points (IXPs): Public peering is handled through nearby national hubs in the Ashburn and Washington D.C. area. Most interconnection within Annapolis is established privately between carriers and customers.
Bare Metal: Bare metal solutions are available, typically through providers that service the broader Baltimore-Washington market. Services from companies like Hivelocity can be deployed to serve the region.
Power Analysis
Average Cost Of Power: Expect industrial power costs to range from $0.10 – $0.14/kWh, as of September 2025. This competitive pricing helps manage operational expenses for power-intensive deployments. The state's power mix is dominated by natural gas and nuclear generation, providing a stable energy supply.
Power Grid Reliability: The power grid serving Annapolis and the surrounding region is well-engineered, benefiting from infrastructure designed to support critical government and commercial operations. Data centers in the area typically have access to redundant power feeds from multiple substations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Annapolis are strategically located to serve the Maryland state capital, the U.S. Naval Academy, and numerous government contractors. Proximity to both Baltimore and Washington D.C. makes it a viable location for disaster recovery and local production workloads.
Regional Market Reach: The market effectively serves the entire Baltimore-Washington corridor, a dense economic region with a large population and significant government and technology sectors.
Tax Advantage For Data Centers: Maryland offers a significant sales and use tax exemption for qualified data centers on the purchase of their equipment. This incentive directly lowers the capital expenditure required to build out or refresh critical IT infrastructure.
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 location on the Chesapeake Bay exposes infrastructure to specific environmental threats.
Key risks for data center operations include hurricanes, coastal and riverine flooding, strong winds, and severe winter weather. Facility selection, site hardening, and thorough business continuity planning are essential to mitigate these potential disruptions.
