Data Centers in Raleigh

Raleigh – Infrastructure Stability for the Research Triangle

Raleigh is a strategic anchor for high-stakes enterprise and research workloads, offering a rare balance of low operational risk and significant tax advantages. It is the preferred market for organizations requiring Tier 1 reliability and high-capacity fiber without the price premium of major coastal hubs. This region excels at supporting long-term profitability for data-intensive life sciences and technology firms.

Raleigh: At A Glance

Network & Connectivity Ecosystem

The Raleigh network environment is built for reliability and local performance, serving as a critical pass-through for major fiber routes.

Carrier Density & Carrier Neutrality: Carrier count: over 13. As of September 2025, the market hosts ~15 carriers providing a mix of national Tier 1 transit and regional dark fiber. This density ensures competitive pricing and diverse routing for critical applications.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of September 2025, direct physical on-ramps for major providers are not present locally. High-capacity private extensions via PNI or waves to Ashburn facilitate low-latency cloud access for hybrid environments. Think of Ashburn as the heavy-lifting neighbor just a short fiber hop away.

Internet Exchange Points (IXPs): The Raleigh–Durham Internet Exchange (RDU-IX) provides a local peering point that keeps regional traffic local. This reduces reliance on distant hubs and improves latency for users within the Research Triangle.

Bare Metal: Sturdy bare metal options are available through providers such as phoenixNAP and Hivelocity, as of September 2025. These services allow for rapid scaling of physical hardware without the long lead times of traditional hardware procurement.

Power Analysis

Raleigh benefits from a mature utility landscape that prioritizes industrial stability and predictable pricing.

Average Cost Of Power: Industrial electricity is approximately $0.08/kWh, as of September 2025. The generation mix includes 33% nuclear and 42% natural gas, providing a predictable cost structure that aids in accurate long-term budgeting for power-intensive deployments.

Power Grid Reliability: The local grid is well-engineered with redundant feeds and multi-substation support throughout the primary data center corridors. This provides a reliable foundation for facilities that require high uptime for mission-critical workloads.

Market Access, Business & Tax Climate

Raleigh is a preferred destination for businesses looking to manage the high costs of primary markets without sacrificing performance.

Proximity To Key Business Districts: Data centers are centrally located near Research Triangle Park (RTP). This area houses a high concentration of life sciences, technology, and academic institutions requiring low-latency connectivity for collaborative research.

Regional Market Reach: Raleigh serves as a vital gateway for the Southeastern United States, effectively reaching the growing population centers of North and South Carolina. This makes it a smart spot for content delivery and regional service hosting.

Tax Advantage For Data Centers: North Carolina provides a specific sales and use tax exemption for electricity and data center support equipment. These incentives significantly lower the capital requirements for refreshing hardware and scaling infrastructure.

Natural Disaster Risk

The Raleigh market is characterized by a stable environment with a FEMA NRI Score of 14.70, which is classified as Low, as of September 2025. The market remains a top choice for disaster recovery due to its distance from major seismic zones and coastal flood plains.

Hurricane: Periodic tropical activity brings heavy rain and wind, managed through purpose-built facility hardening and resilient site design.

Tornado: Occasional regional risks are addressed through reinforced structural engineering and rigorous site safety protocols.

Lightning & Hail: Common seasonal events that local facilities mitigate via reliable grounding and protective roofing systems.

River Flood: Localized risks are managed through site selection in high-elevation areas and advanced drainage management.

Winter Weather: Occasional ice or snow events are managed through reliable site access and heating systems to maintain operations. Other risks like earthquake and wildfire are considered minor.