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Data Centers in Raleigh

12 locations found

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Raleigh – Cost-Effective & Resilient Colocation

Raleigh, North Carolina, is a strong secondary data center market ideal for organizations prioritizing cost efficiency and operational resilience. Its aggressive tax incentives, low power costs, and minimal natural disaster risk make it a compelling location for disaster recovery sites, secondary production environments, and primary workloads for businesses serving the Southeastern United States. This market delivers a stable operating environment that directly supports higher uptime and lower total cost of ownership.

Raleigh: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent network infrastructure for a market of its size.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hub is Ashburn, VA; private connectivity is available.
Power Cost$0.07 – $0.09/kWh (est.)Industrial rates are competitive, supporting lower operational expenses.
Disaster RiskLow (14.70 FEMA NRI)Very low exposure to major natural disasters, enhancing uptime.
Tax IncentivesYesSignificant sales, use, and property tax exemptions are available for data centers.
Sales Tax4.75% (state base rate)North Carolina offers a favorable base rate, as of September 2025.

Network & Connectivity Ecosystem

Raleigh provides a solid connectivity foundation, particularly for a market that isn't a primary interconnection hub. The infrastructure easily supports demanding enterprise workloads.

Carrier Density & Carrier Neutrality The Raleigh market is served by over 10 network carriers, as of September 2025. Carrier-neutral facilities offer diverse options for creating resilient network architectures, ensuring competitive pricing and avoiding vendor lock-in.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Raleigh data centers, as of September 2025. Businesses connect to cloud providers via private network extensions or IP transit to the nearest major hub in Ashburn, Virginia. This model provides secure, high-performance access to all major cloud platforms.

Internet Exchange Points (IXPs) Public peering in Raleigh is limited. Most interconnection occurs through private network interconnects (PNIs) within colocation facilities or is routed through national hubs like Ashburn and Atlanta for peering with major networks.

Bare Metal Bare metal server options are available from providers in the region. These services offer dedicated, high-performance computing without the overhead of virtualization, with providers like Hivelocity offering solutions.

Power Analysis

North Carolina’s power infrastructure is a key advantage for data center operators in Raleigh, combining affordability with a reliable supply.

Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09 per kWh, as of September 2025. These competitive costs can substantially reduce the operational expenses for high-density deployments.

Power Grid Reliability The power grid serving the Raleigh area, particularly around the Research Triangle Park, is well-engineered and reliable. The state's energy mix relies heavily on nuclear (33%) and natural gas (42%), providing stable baseload power critical for maintaining data center uptime.

Market Access, Business & Tax Climate

Raleigh combines strategic location with a highly favorable business environment, making it an attractive alternative to more expensive primary markets.

Proximity To Key Business Districts Data centers in the Raleigh area are strategically located to serve the high-tech, biotech, and financial industries within the Research Triangle Park (RTP). This proximity allows for low-latency connectivity to corporate offices and research facilities.

Regional Market Reach From Raleigh, businesses can effectively serve end-users across North Carolina, South Carolina, and Virginia. The location provides a strategic position for content delivery and application hosting for the mid-Atlantic and Southeastern United States.

Tax Advantage For Data Centers North Carolina offers some of the most attractive tax incentives for data centers in the country. The state provides a complete sales and use tax exemption on electricity and qualifying data center equipment, which significantly lowers both initial capital investment and ongoing operating costs.

Natural Disaster Risk

Raleigh has a very low natural disaster risk profile, according to federal assessments.

The market has a FEMA National Risk Index score of 14.70, classifying it as a "Very Low" risk region, as of September 2025. The primary environmental hazards to consider are atmospheric, including hurricanes, strong wind, tornadoes, and lightning. The inland location mitigates the most severe impacts from coastal storms, making it a reliable location for critical infrastructure.

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