Data Centers in Allentown
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Allentown – Reliable Colocation, Strategic Location
Allentown, Pennsylvania offers a compelling data center market for businesses seeking a cost-effective, lower-risk alternative to primary East Coast hubs like New York City or Northern Virginia. The location provides resilient infrastructure and solid connectivity to major population centers without the premium price tag. This strategic position helps protect critical applications and control operational budgets.
Allentown: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; fewer direct international routes than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Philadelphia and NYC; private network extensions are available. |
| Power Cost | ~$0.08/kWh (est.) as of September 2025 | Stable grid with a diverse fuel mix including nuclear and natural gas. |
| Disaster Risk | High (Score: 84.00) as of September 2025 | Main risks include winter weather, severe storms, and flooding events. |
| Tax Incentives | Yes | Sales and use tax exemption for qualifying computer data center equipment. |
| Sales Tax | 6.00% (Pennsylvania state rate) as of September 2025 | The state-level tax rate; local taxes may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
Allentown provides access to over 9 carriers as of September 2025. This ensures sufficient options for creating redundant network architectures in a carrier-neutral environment, which is critical for maintaining uptime.
Direct Cloud On-Ramps
There are 0 direct cloud on-ramps located within Allentown as of September 2025. Businesses establish dedicated, high-performance connections to providers like AWS, Google Cloud (GCP), and Microsoft Azure through nearby network hubs in Philadelphia and the New York/New Jersey metro area. Private network interconnects (PNI) and wavelength services are common solutions for achieving secure, low-latency cloud access.
Internet Exchange Points (IXPs)
Public peering is limited within Allentown. Most network traffic exchange occurs via private peering arrangements within local data centers or through the major IXPs in Philadelphia and New York City.
Bare Metal
Bare metal solutions are readily available from providers such as ColoCrossing and Hivelocity. These services offer dedicated compute resources for performance-sensitive workloads that require physical server isolation.
Power Analysis
Average Cost Of Power
The average cost for industrial power in the Allentown area is approximately $0.08/kWh (est.) as of September 2025. This competitive pricing can significantly lower total operational costs for compute-heavy infrastructure compared to more expensive coastal markets.
Power Grid Reliability
The regional power grid is well-engineered, benefiting from a diverse generation portfolio dominated by natural gas and nuclear power. This fuel mix provides stable baseload capacity, supporting the high-availability requirements of modern data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Allentown serve the Lehigh Valley's growing logistics, healthcare, and light manufacturing sectors. This proximity offers low-latency connectivity for local business operations and supply chain management systems.
Regional Market Reach
Allentown's location provides effective, low-latency reach to the massive population centers of Philadelphia (approximately 60 miles) and the New York City metro area (approximately 90 miles). This makes it an excellent location for disaster recovery and content delivery strategies.
Tax Advantage For Data Centers
Pennsylvania provides a sales and use tax exemption on eligible computer data center equipment purchases. This incentive directly reduces the capital expenditure required for new deployments or hardware refreshes, improving the financial case for building out infrastructure in the state.
Natural Disaster Risk
Allentown has a High natural disaster risk profile, with a National Risk Index score of 84.00 out of 100 as of September 2025. Key risks for infrastructure planning include winter weather, ice storms, and riverine flooding. The remnants of hurricanes can also bring strong winds and heavy rain. Other notable hazards are tornadoes and heat waves.
