Data Centers in Manchester
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Manchester – Tax-Advantaged New England Colocation
Manchester, New Hampshire, provides a compelling alternative to the Boston market for businesses prioritizing operational cost savings and a low-risk environment. Its primary advantage is financial, offering significant tax exemptions that directly reduce capital and operational expenditures for production and disaster recovery workloads.
Manchester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Boston; private network extensions are readily available. |
| Power Cost | $0.16-$0.19/kWh – as of September 2025 | Slightly above the national average, but offset by significant tax benefits. |
| Disaster Risk | Moderate (31.82) – as of September 2025 | Very low overall national risk profile with no single dominant threat. |
| Tax Incentives | Yes | Includes DC-specific sales/property tax abatement and general economic development rebates. |
| Sales Tax | 0.00% – as of Midyear 2025 | No state sales tax provides a major cost advantage for hardware procurement. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Manchester is served by 3 providers across 4 data centers as of September 2025. The market offers access to regional and national carriers, with carrier-neutral facilities providing diverse connectivity options.
Direct Cloud On-Ramps: The market has 0 direct cloud on-ramps as of September 2025. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established via dedicated circuits to the primary interconnection hub in Boston.
Internet Exchange Points (IXPs): Public peering is limited within Manchester itself. Most network peering is conducted privately between carriers or managed through Boston-based exchanges like the Boston Internet Exchange (BOSIX).
Bare Metal: Bare metal server options are available in the region, offering dedicated compute resources for performance-sensitive applications. Providers like Hivelocity and ColoCrossing can service deployments in the greater New England area.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Manchester area typically range from $0.16 to $0.19 per kWh as of September 2025. While not the lowest in the nation, these power costs are frequently offset by the state's highly favorable tax climate.
Power Grid Reliability: The power grid supporting Manchester's commercial districts is well-engineered for New England weather patterns. Data centers in the area feature standard redundancies, including UPS and generator backup, to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Manchester serve the local finance, healthcare, and technology sectors. Their strategic location provides low-latency connectivity to businesses throughout New Hampshire, Vermont, and Maine.
Regional Market Reach: Manchester is an effective hub for reaching the northern New England population of over 3 million people. It also serves as an excellent disaster recovery site for businesses with primary operations in the more expensive and dense Boston metropolitan area, approximately 50 miles away.
Tax Advantage For Data Centers: New Hampshire's complete lack of a state sales tax creates an immediate, significant saving on all data center hardware and software purchases. This is complemented by potential property tax abatements on equipment and economic development rebates, further reducing the total cost of ownership.
Natural Disaster Risk
Manchester has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 31.82 as of September 2025. The environment is stable, with no single high-probability threat that would typically disrupt data center operations. Key risks are primarily weather-related and include severe winter storms, hurricanes, lightning, river flooding, and strong winds.
