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Data Centers in Raleigh

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Raleigh – Resilient Infrastructure in a Core Research Hub

Raleigh offers a compelling blend of resilient infrastructure, favorable business incentives, and strategic location within the Research Triangle. This market is ideal for enterprises requiring cost-effective, low-risk colocation to serve the Mid-Atlantic and Southeastern United States. Locating here provides a stable platform for compute-intensive workloads while minimizing exposure to natural disasters and high operating expenses.

Raleigh: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong regional and national fiber connectivity, supporting enterprise needs.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are in Northern Virginia; private network extensions available.
Power Cost$0.07–$0.09/kWhDiverse grid with significant nuclear and natural gas sources.
Disaster RiskLow (14.70) – as of September 2025Very low score from the FEMA National Risk Index.
Tax IncentivesYesMultiple DC-specific sales, use, and property tax exemptions available.
Sales Tax4.75% (State Rate) – as of September 2025Additional local taxes may apply, but exemptions exist for DC equipment.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Raleigh supports a healthy ecosystem of over 13 unique network providers as of September 2025. The market features carrier-neutral facilities that provide competitive options for transit, transport, and dark fiber, ensuring reliable and diverse connectivity paths.

Direct Cloud On-Ramps: Raleigh does not have any direct, dedicated cloud on-ramps from major hyperscalers as of September 2025. Businesses connect to cloud providers via private network links or metro extensions to the primary interconnection hubs in Ashburn, Virginia.

Internet Exchange Points (IXPs): Public peering is limited within Raleigh itself. Most network interconnection occurs through private peering arrangements inside local data centers or by connecting to major IXPs in nearby hubs like Ashburn or Atlanta.

Bare Metal: Bare metal server options are readily available from multiple providers in the Raleigh market. Companies like phoenixNAP offer dedicated server solutions for workloads requiring direct hardware access.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Raleigh typically range from $0.07 to $0.09 per kWh as of September 2025. These competitive power costs, combined with a favorable tax environment, reduce total operational expenses for data-intensive deployments.

Power Grid Reliability: North Carolina's power grid is well-engineered and benefits from a diverse generation mix, including 33% nuclear and 42% natural gas. Data centers in the Raleigh area are served by redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Raleigh are strategically located to serve the high-tech, biotech, and financial industries concentrated in the Research Triangle Park (RTP). This proximity offers low-latency connectivity for research, development, and enterprise applications.

Regional Market Reach: Raleigh provides an excellent base for serving the Southeastern United States. Its location offers a low-latency footprint covering major population centers in North Carolina, Virginia, South Carolina, and Georgia.

Tax Advantage For Data Centers: North Carolina provides significant tax advantages for qualifying data centers. The state offers a complete sales and use tax exemption on electricity and data center support equipment, which substantially lowers both upfront capital costs and ongoing operational spending.

Natural Disaster Risk

Raleigh has a very low natural disaster risk profile, with a FEMA National Risk Index score of 14.70 out of 100 as of September 2025. The primary environmental hazards to consider are related to severe weather events. Key risks include hurricanes (and associated strong winds and inland flooding), tornadoes, hail, and winter storms. The area has very low risk from earthquakes, wildfires, or landslides.

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