Data Centers in Massachusetts

Massachusetts – A Premier Hub for Northeast Connectivity

Massachusetts offers a mature and highly connected data center market, ideal for enterprises requiring low-latency access to the dense financial, technology, and academic ecosystems of Boston and the broader New England region. The state combines excellent network infrastructure with significant tax advantages, providing a reliable and cost-effective environment for critical digital assets.

Massachusetts: At A Glance

Network & Connectivity Ecosystem

Massachusetts, particularly the greater Boston area, is a major network aggregation point for the northeastern United States. The market provides a strong foundation for businesses that depend on speed and uptime.

Carrier Density & Carrier Neutrality: The state features a healthy ecosystem of over 40 unique network providers as of September 2025, with numerous carrier-neutral facilities offering competitive interconnection options.

Direct Cloud On-Ramps: With over 1 dedicated cloud on-ramps as of September 2025, Massachusetts enables direct, low-latency connections into 4 major cloud regions. Providers with a physical presence include AWS and Google Cloud (GCP).

Internet Exchange Points (IXPs): While several private peering exchanges exist, most public peering for the region is concentrated in major national hubs like New York City, accessible via extensive long-haul fiber routes.

Bare Metal: Bare metal server solutions are readily available from multiple providers in the Boston market. Options include services from global providers like Hivelocity and phoenixNAP.

Power Analysis

The state's power infrastructure is reliable, though costs reflect regional energy market dynamics.

Average Cost Of Power: Industrial electricity rates range from $0.10–$0.10/kWh as of October 2025. This pricing is competitive within the Northeast corridor, helping to manage total operational costs for power-dense deployments.

Power Grid Reliability: The electrical grid serving the primary data center corridors around Boston is well-engineered and stable, with facilities typically supported by redundant substations to ensure high levels of availability.

Market Access, Business & Tax Climate

Massachusetts provides strategic access to a wealthy and technologically advanced regional economy, supported by a favorable business environment for technology infrastructure.

Proximity To Key Business Districts: Data centers are located to serve the dense concentration of financial services, healthcare, biotechnology, and university research institutions in Boston and Cambridge.

Regional Market Reach: The state is an ideal hub for serving end-users across New England, including Massachusetts, New Hampshire, Rhode Island, Connecticut, and Maine.

Tax Advantage For Data Centers: Massachusetts offers a significant sales and use tax exemption on the purchase of qualified data center equipment for eligible operators. This incentive directly reduces the capital expenditure required for building out or refreshing hardware.

Natural Disaster Risk

Massachusetts has a High natural disaster risk profile, with a FEMA National Risk Index score of 92.68 as of September 2025. The primary threats are weather-related, requiring data centers to be built to stringent resiliency standards. Key risks include hurricanes, winter weather, coastal waves, strong winds, earthquakes, and riverine flooding.