Data Centers in Raleigh

Raleigh – Low-Risk, High-Value Infrastructure Hub

Raleigh is a premier Tier 2 data center market for organizations that require a balance of affordability, low natural disaster risk, and robust regional connectivity. The market serves as a cost-effective and resilient alternative to primary East Coast hubs, providing an ideal location for disaster recovery and production workloads for the Southeast. Its proximity to the Research Triangle Park (RTP) makes it a strategic choice for tech, biotech, and enterprise clients.

Raleigh: At A Glance

Network & Connectivity Ecosystem

Raleigh's connectivity is defined by strong regional fiber networks, even without the hyperscale density of markets like Ashburn. It offers excellent performance for serving the Carolinas and the broader Southeast.

Carrier Density & Carrier Neutrality The Raleigh market provides access to over 13 carriers in its 11 colocation facilities, as of September 2025. Multiple carrier-neutral data centers ensure competitive pricing and network resilience, preventing vendor lock-in.

Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Raleigh. However, dedicated and private access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is readily available through private network extensions to the primary interconnection hub in Ashburn, Virginia.

Internet Exchange Points (IXPs) Public peering is limited within the immediate Raleigh market. Most traffic exchange occurs through private network interconnects (PNIs) within local data centers or is routed through major peering hubs in Ashburn and Atlanta.

Bare Metal Bare metal server options are available from multiple providers in Raleigh, offering a direct alternative to virtualized cloud instances for performance-sensitive applications. Providers like Hivelocity offer dedicated servers in the region.

Power Analysis

North Carolina’s regulated energy market provides predictable power pricing and a reliable grid, which are critical for data center operations.

Average Cost Of Power Industrial electricity rates in the Raleigh area typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing can significantly reduce total operational costs for power-intensive deployments. The state's power mix is dominated by natural gas (around 42%) and nuclear (33%), offering a stable supply.

Power Grid Reliability The power grid supporting the Raleigh and Research Triangle Park region is well-engineered for high availability. Data centers in the area are typically served by redundant power feeds from separate substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Raleigh combines a pro-business environment with strategic access to a highly educated workforce and key economic centers.

Proximity To Key Business Districts Data centers in Raleigh are strategically located to serve the high-tech, biotechnology, and financial companies in the Research Triangle Park (RTP), one of the most prominent high-tech research and development parks in the United States. This proximity enables low-latency connectivity for local enterprises.

Regional Market Reach From Raleigh, organizations can effectively serve a large population across North Carolina, South Carolina, and Virginia. It is an excellent digital infrastructure hub for reaching customers and business partners throughout the Mid-Atlantic and Southeast regions.

Tax Advantage For Data Centers North Carolina offers significant tax advantages specifically for data centers. These incentives include sales and use tax exemptions on electricity and qualifying data center equipment, which directly lowers both capital and operational expenses. The state also provides a sales and use tax exclusion for cloud-based services, making it a financially attractive location.

Natural Disaster Risk

Raleigh has one of the lowest natural disaster risk profiles of any major East Coast market, making it an exceptional location for critical infrastructure and disaster recovery sites.

The region has a FEMA National Risk Index score of 14.70 out of 100, which is categorized as "Very Low," as of September 2025. The primary environmental risks to consider are related to weather events common to the Southeast, including hurricanes (primarily strong wind and rain remnants), ice storms, tornadoes, and strong winds. Risks from earthquakes, wildfires, and landslides are negligible.