Data Centers in Manchester
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Manchester, New Hampshire – A Low-Risk, Tax-Advantaged Hub
Executive Summary
Manchester, New Hampshire is a compelling secondary market for enterprises that prioritize cost efficiency and operational resilience. Its key advantage lies in combining a 0.00% state sales tax with a very low natural disaster risk profile, creating a superior total cost of ownership for colocation, disaster recovery, and edge computing workloads targeting the New England region. This market is ideal for businesses seeking an alternative to the higher costs of nearby Boston without sacrificing performance for regional users.
Manchester, New Hampshire: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity suitable for most business needs, though not a primary national fiber hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Direct access is achieved via private network extensions to the Boston connectivity ecosystem. |
| Power Cost | $0.16 - $0.19/kWh — as of September 2025 | Higher than the US average, but offset by significant tax and operational savings. |
| Disaster Risk | Moderate (31.82) — as of September 2025 | A favorable risk profile, with minimal exposure to major catastrophic events. |
| Tax Incentives | Yes | Includes DC-specific sales/property tax abatements and general economic development rebates. |
| Sales Tax | 0.00% (New Hampshire state) — as of September 2025 | Provides immediate, significant savings on all hardware and software purchases. |
Network & Connectivity Ecosystem
Manchester provides a solid foundation for network connectivity, leveraging its proximity to the primary Northeast corridor.
Carrier Density & Carrier Neutrality The market features 3 colocation providers offering access to regional and national carriers, as of September 2025. Carrier-neutral facilities ensure competitive connectivity options for creating resilient network architectures.
Direct Cloud On-Ramps There are no native public cloud on-ramps located directly within Manchester. Businesses establish secure, low-latency connections to AWS, Google Cloud (GCP), Microsoft Azure, and others via dedicated fiber links to carrier hotels and on-ramp locations in the Greater Boston area.
Internet Exchange Points (IXPs) Public peering is not a major feature of the Manchester market. Most interconnection is handled through private peering arrangements or by connecting to the rich ecosystem of IXPs located in Boston.
Bare Metal Bare metal server options are available in the region, providing dedicated compute for performance-sensitive applications. Providers like Hivelocity and ColoCrossing can service deployments in the Northeast.
Power Analysis
Average Cost Of Power Industrial electricity rates typically range from $0.16 to $0.19 per kWh, as of September 2025. While the kilowatt-hour cost is higher than in some other US markets, it is frequently offset by the state's substantial tax advantages, which lower the total operational expense.
Power Grid Reliability The power grid serving Manchester's commercial and industrial zones is well-engineered and stable. Data centers in the area are supported by reliable utility infrastructure, with facilities offering N+1 or greater redundancy on power delivery systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Manchester serve the local business community and provide a lower-cost alternative for enterprises in the Greater Boston metropolitan area, located approximately 50 miles south. This proximity allows for effective disaster recovery strategies and edge deployments for the broader region.
Regional Market Reach From Manchester, organizations can effectively serve customers across New Hampshire, Vermont, Maine, and northern Massachusetts with low latency. It is a strategic location for reaching the northern New England population.
Tax Advantage For Data Centers New Hampshire's lack of a state sales tax is its most significant financial benefit, eliminating a major capital expense when purchasing servers, networking gear, and other equipment. This is complemented by data-center-specific incentives, such as property tax abatements, that further reduce long-term operating costs.
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 area is not prone to major seismic or tornadic activity, making it a geologically stable location for critical infrastructure.
The primary environmental risks to consider are seasonal and include:
- Ice Storms
- Hurricanes (remnants and associated strong winds)
- Riverine Flooding
- Cold Waves
- Wildfire
