Data Centers in Boston

Boston – Connectivity Hub for Research & Tech

Executive Summary

Boston is a premier East Coast interconnection point and a top-tier market for any organization serving the finance, healthcare, and technology sectors. Its dense network ecosystem provides the low-latency connectivity required for high-stakes applications, from genomic research to algorithmic trading. For businesses that depend on speed and uptime to reach the Northeast US, Boston delivers a distinct competitive advantage.

Boston: At A Glance

Network & Connectivity Ecosystem

Boston is one of the most connected markets in North America, with a mature and diverse digital infrastructure. The region benefits from a significant concentration of long-haul fiber, subsea cables, and carrier-neutral facilities.

Carrier Density & Carrier Neutrality With over 40 unique network providers, as of September 2025, Boston offers exceptional choice. This density fosters a competitive environment, ensuring resilient connectivity options and favorable pricing for services ranging from dark fiber to IP transit.

Direct Cloud On-Ramps The market has more than one direct on-ramp, enabling private, high-performance connections to 4 major cloud availability regions, as of September 2025. Local providers offer dedicated access to AWS and Google Cloud (GCP). This direct connectivity bypasses the public internet, improving security and performance for hybrid cloud deployments.

Internet Exchange Points (IXPs) The Boston Internet Exchange (Boston IX) serves as a key peering point for the region. Access to the IXP allows networks to exchange traffic directly, reducing latency and transit costs for reaching local eyeballs and businesses.

Bare Metal Bare metal compute is readily available from multiple providers in the Boston market. These dedicated server solutions offer the highest levels of performance and security for demanding workloads. Options include services from providers like phoenixNAP.

Power Analysis

Average Cost Of Power Industrial electricity rates in the Boston area range from approximately $0.10–$0.10/kWh, as of October 2025. While higher than some markets in the US, this cost is stable and predictable, allowing for accurate financial modeling of operational expenses. The grid mix is primarily composed of natural gas, with a growing renewables portfolio.

Power Grid Reliability The power grid serving Boston's primary data center clusters is well-engineered and highly reliable. Major colocation facilities are supported by redundant substations and multiple utility feeds, ensuring high levels of uptime consistent with enterprise requirements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Boston's data centers are strategically located to serve the region's core economic engines. This includes the Financial District, the Route 128 technology corridor, and the dense concentration of biotechnology and pharmaceutical companies in Cambridge's Kendall Square.

Regional Market Reach From Boston, organizations can effectively serve the entire New England region of 15 million people with minimal latency. It also acts as a crucial connectivity gateway to Atlantic Canada and Europe via its subsea cable landing stations.

Tax Advantage For Data Centers Massachusetts provides a significant sales and use tax exemption for equipment purchased for qualifying data centers. This incentive directly lowers the capital expenditure required to deploy or expand infrastructure, making the market financially attractive.

Natural Disaster Risk

Boston has a High natural disaster risk profile, with a FEMA National Risk Index score in the 92.68 percentile, as of September 2025. While modern data centers are engineered to mitigate these threats, a thorough risk assessment is critical.

Key environmental risks for the region include hurricanes, severe winter weather and ice storms, coastal flooding, and strong winds. Other notable risks are heat waves, earthquakes, and riverine flooding. Facility selection should prioritize providers with proven designs and operational procedures to withstand these potential events.