Data Centers in Triangle
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Triangle – Resilient Infrastructure & Favorable Business Climate
The Triangle region of North Carolina is an excellent market for enterprises requiring resilient, cost-effective infrastructure with low latency to the Mid-Atlantic and Southeastern United States. Its minimal disaster risk profile and significant tax incentives create a stable operating environment, ensuring high uptime and reducing total cost of ownership for critical workloads. This market is particularly well-suited for secondary disaster recovery sites and primary production environments for companies in the technology, research, and life sciences sectors.
Triangle: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with good access to national carrier backbones. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Northern Virginia; private network extensions are common. |
| Power Cost | $0.07–$0.09/kWh – as of September 2025 | Competitive rates supported by a diverse and stable energy generation portfolio. |
| Disaster Risk | Low (14.7 FEMA NRI Score) – as of September 2025 | Very low exposure to major natural disasters, enhancing operational stability. |
| Tax Incentives | Yes | Multiple state-level sales, use, and property tax exemptions for data centers. |
| Sales Tax | 4.75% (state base rate) – as of September 2025 | Favorable state sales tax rate, with specific exemptions available for DC equipment. |
Network & Connectivity Ecosystem
The Triangle's connectivity ecosystem is robust, serving the dense cluster of technology and research institutions in the region. It offers solid network infrastructure, though direct access to hyperscale cloud providers requires transit to other markets.
Carrier Density & Carrier Neutrality: The market is served by over 7 carriers, as of September 2025. Facilities offer carrier-neutral interconnection, providing choice and resiliency for network design.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within the Triangle market, as of September 2025. Businesses connect to cloud providers via dedicated network services extending to the primary North American hub in Ashburn, Virginia.
Internet Exchange Points (IXPs): Public peering is limited within the immediate market. Most network peering occurs privately between carriers or is routed through major exchange hubs in nearby cities like Atlanta and Ashburn.
Bare Metal: Bare metal server options are available from providers in the region. Companies like Hivelocity offer dedicated server solutions for workloads requiring direct hardware access.
Power Analysis
North Carolina provides a stable and cost-effective power environment, which is a significant advantage for power-intensive data center operations.
Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09 per kWh, as of September 2025. These competitive energy prices directly lower operational expenditures for high-density deployments. The state's energy mix includes 33% nuclear, 42% natural gas, 11% coal, and 14% renewables.
Power Grid Reliability: The electrical grid serving the Triangle is well-engineered and reliable. Data centers are supported by redundant power feeds from multiple substations, ensuring high levels of uptime and fault tolerance.
Market Access, Business & Tax Climate
The Triangle's strategic location and pro-business climate make it an attractive data center destination.
Proximity To Key Business Districts: Data centers in this market provide low-latency connectivity to the world-renowned Research Triangle Park (RTP), home to hundreds of companies in technology, biotechnology, and advanced research. This proximity supports data-intensive R&D and enterprise operations.
Regional Market Reach: The Triangle serves as an effective hub for reaching customers and business partners across the Carolinas, Virginia, and the broader Southeastern U.S. Its location is ideal for disaster recovery strategies for businesses located in major hubs like Atlanta or Washington, D.C.
Tax Advantage For Data Centers: North Carolina offers substantial tax incentives that reduce both capital and operational costs. These advantages include sales and use tax exemptions on electricity and critical data center equipment, significantly lowering the total cost of ownership.
Natural Disaster Risk
The Triangle region has a very low natural disaster risk profile, enhancing its appeal for critical infrastructure hosting.
Based on the FEMA National Risk Index, the area has a score of 14.7, indicating a very low risk level compared to other U.S. locations as of September 2025. The primary environmental hazards to consider are hurricanes (typically weakened by the time they move inland), severe wind and thunderstorms, hail, and tornadoes. Other risks such as winter weather, drought, and riverine flooding are also present but are generally manageable with standard facility engineering and operational planning.
