Data Centers in Pennsylvania

Pennsylvania – Resilient Infrastructure for the Mid-Atlantic

Executive Summary

Pennsylvania is the strategic pivot point for enterprises needing high-performance access to the Northeast corridor without the Tier 1 price tag. By combining a mature power grid with deep fiber density, the state secures mission-critical workloads for finance, healthcare, and technology leaders.

Pennsylvania: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 35, as of September 2025. The market offers a wide variety of service providers, ensuring competitive pricing for transit and transport services across the state.

Direct Cloud On-Ramps: Over 2, enabling access to 1 cloud regions, as of September 2025. Users can establish direct, private connections to AWS, improving security and performance for hybrid architectures.

Internet Exchange Points (IXPs): Regional exchanges in Philadelphia and Pittsburgh facilitate local peering to keep latency low for end-users throughout the Mid-Atlantic region.

Bare Metal: High-performance compute is widely available across the state, as of September 2025. Providers such as Hivelocity and ColoCrossing offer dedicated hardware for resource-intensive workloads requiring direct hardware access.

Power Analysis

Average Cost Of Power: Industrial electricity ranges from $0.07/kWh to $0.09/kWh, as of September 2025. These competitive rates lower the long-term operational costs for power-dense AI or high-performance computing clusters compared to higher-cost coastal markets.

Power Grid Reliability: Infrastructure is supported by a diversified mix including natural gas and nuclear generation, as of September 2025. Multi-substation support in major corridors provides a sturdy foundation for 24/7 uptime for mission-critical facilities.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are located near the financial centers of Philadelphia and the growing tech corridor in Pittsburgh, as of September 2025. This proximity allows for sub-millisecond response times to corporate headquarters and research labs.

Regional Market Reach: A deployment in Pennsylvania can effectively serve 40 million people within a 250-mile radius, as of September 2025. This reach makes it a prime location for content delivery targeting major population centers on the Eastern Seaboard.

Tax Advantage For Data Centers: Operators benefit from a sales and use tax exemption program for computer data center equipment, as of September 2025. This financial relief significantly reduces the initial capital required to build, refresh, or expand hardware infrastructure.

Natural Disaster Risk

Natural Disaster Risk: High (83.99), as of September 2025. Pennsylvania manages several natural hazards through specific engineering and site selection.

• Winter Weather: Snow and ice can disrupt regional transit, requiring reliable fuel storage and logistics for onsite backup systems.
• Riverine Flooding: While a risk in specific low-lying areas, most modern facilities are located safely outside floodplains.
• Severe Weather: Tornadoes and high-wind events occasionally occur, favoring buildings with reinforced structural integrity.
• Lightning: Significant activity during summer months requires purpose-built grounding and surge protection systems.
• Heat Waves: Periodic high temperatures demand efficient cooling systems and adequate power margins to maintain environmental stability.