Data Centers in Allentown
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Allentown – Strategic Hub for Northeast Edge Computing
Allentown, Pennsylvania, offers a compelling alternative to major East Coast hubs like New York City and Northern Virginia. It provides a strategic location for enterprises requiring low-latency access to the dense Northeast markets while benefiting from favorable tax incentives and a reduced risk profile. This market is ideal for disaster recovery, secondary deployments, and edge computing applications serving the greater Philadelphia and New York metropolitan areas.
Allentown: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, less dense than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Philadelphia and New York City; private connectivity options are available. |
| Power Cost | $0.09 - $0.11/kWh | Based on a mix of natural gas, nuclear, and renewables. |
| Disaster Risk | High (84.00) – as of September 2025 | Primarily driven by weather events like winter storms, wind, and flooding. |
| Tax Incentives | Yes | State-level sales and use tax exemptions on qualified data center equipment. |
| Sales Tax | 6.00% (Pennsylvania) – as of September 2025 | Tax exemptions significantly reduce the effective rate on eligible equipment purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The Allentown market features a solid carrier ecosystem with over 9 providers available, as of September 2025. Facilities offer carrier-neutral interconnection, providing choice and redundancy for network services. While not as dense as primary markets, the available networks support robust enterprise and disaster recovery needs.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Allentown itself, as of September 2025. Secure, private connections to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure are typically established via dedicated circuits to nearby interconnection hubs in Philadelphia or the New York/New Jersey metro area.
Internet Exchange Points (IXPs) Public peering is limited within Allentown. Most traffic exchange occurs through private network interconnects or is routed to major regional IXPs like the Philadelphia Internet Exchange (PHLIX) or those in New York City to connect with the global internet backbone.
Bare Metal Bare metal server options are available in the Allentown market. Providers like ColoCrossing offer dedicated server solutions, giving businesses direct access to physical hardware for performance-intensive workloads.
Power Analysis
Average Cost Of Power Industrial electricity rates in the Allentown area typically range from $0.09 to $0.11 per kWh, as of September 2025. This competitive pricing, influenced by a grid powered heavily by natural gas and nuclear, can offer significant operational savings compared to more expensive coastal power markets.
Power Grid Reliability The regional power grid is well-engineered to serve industrial customers. Data centers in the area are supported by reliable utility infrastructure, with many facilities offering multi-substation feeds and N+1 or 2N redundancy to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Allentown's data centers serve the Lehigh Valley's strong concentration of healthcare, logistics, and light manufacturing industries. The location provides low-latency connectivity to business centers in Philadelphia, Harrisburg, and the broader New York City metropolitan area.
Regional Market Reach Strategically positioned within a few hours' drive of New York City and Philadelphia, Allentown can effectively serve a population of over 25 million people. This makes it an excellent location for content delivery, application acceleration, and disaster recovery for the entire Northeast corridor.
Tax Advantage For Data Centers Pennsylvania offers a significant tax incentive for data center operators and tenants. The Computer Data Center Equipment Exemption Program provides a full sales and use tax exemption on qualifying equipment purchases, which directly reduces the capital cost of deploying and refreshing infrastructure.
Natural Disaster Risk
Allentown has a high natural disaster risk profile, with a FEMA National Risk Index score of 84.00, as of September 2025. The risk is not driven by a single catastrophic threat but by the frequency of several weather-related events. Key risks for the area include winter weather, riverine flooding, severe wind, lightning, and tornadoes. While the earthquake risk is present, it is considerably lower than the primary weather hazards.
