Data Centers in Allentown
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Allentown – Strategic Hub for Northeast Edge Computing
Allentown serves as a key edge market and a compelling disaster recovery location for the major data hubs of New York City and Philadelphia. It offers a strategic balance of lower operational costs and low-latency connectivity to the dense population centers of the U.S. Northeast. This makes it an ideal choice for enterprises that need to reduce latency to regional end-users without incurring the high costs of a primary market deployment.
Allentown: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity; not a primary international peering hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access via nearby hubs like Philadelphia or the NYC/NJ metro through private connections. |
| Power Cost | $0.07 - $0.09/kWh | Power mix is primarily natural gas and nuclear, offering stable pricing. |
| Disaster Risk | High (83.99 score) | Risk profile driven by weather events common to the U.S. Northeast. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for data center equipment. |
| Sales Tax | 6.00% (Pennsylvania state) | This state-level tax can be exempted for qualifying data center equipment purchases. |
Network & Connectivity Ecosystem
Allentown provides a solid connectivity foundation for regional and edge workloads, with reliable paths to major interconnection hubs. While not a top-tier market, its ecosystem is more than sufficient for most enterprise and content delivery needs.
Carrier Density & Carrier Neutrality With over 9 carriers present as of September 2025, the Allentown market offers good network diversity. The area hosts 3 data centers, ensuring options for carrier-neutral colocation and avoiding vendor lock-in.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Allentown as of September 2025. Businesses connect to cloud providers through dedicated network extensions or wave services to major hubs in Philadelphia and the New York/New Jersey metro area, ensuring low-latency and secure access.
Internet Exchange Points (IXPs) Public peering is not a major feature of this market. Most interconnection is handled through private peering arrangements or by connecting to the primary exchange points in Philadelphia (PhillyIX) and New York (NYIIX).
Bare Metal Bare metal server options are available from providers in the region, including services from companies like ColoCrossing. These services are well-suited for applications requiring dedicated hardware for performance, security, or compliance reasons.
Power Analysis
Pennsylvania's energy market provides stable and reasonably priced power, a critical factor for any data center operation. The grid is built to support the state's industrial base.
Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025, which is competitive for the Northeast region. The state's power generation is dominated by natural gas (~55%) and nuclear (~30%), contributing to cost stability and reliability. This favorable pricing structure can significantly lower total operational costs.
Power Grid Reliability The power grid serving the Lehigh Valley is well-engineered and reliable. Data centers in the area benefit from redundant power feeds and support from multiple substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Allentown's location and business-friendly policies make it a strategic choice for deploying digital infrastructure.
Proximity To Key Business Districts Data centers in Allentown are positioned to serve the Lehigh Valley's growing logistics, healthcare, and light manufacturing sectors. The market also functions as an excellent disaster recovery site for financial and enterprise customers based in Philadelphia and New York City.
Regional Market Reach An Allentown deployment can effectively serve a large population across Eastern Pennsylvania and New Jersey. It provides a low-latency connection point to the entire Northeast corridor, from Washington, D.C. to Boston.
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 building or expanding a facility.
Natural Disaster Risk
Allentown has a High natural disaster risk profile, with a FEMA National Risk Index score of 83.99 as of September 2025. The risks are primarily weather-related and typical for the region.
The main hazards contributing to this score include winter weather, ice storms, strong wind, riverine flooding, and heat waves. While the risk score is high, these events are predictable and can be mitigated with standard data center construction, resilient site selection away from flood plains, and well-defined operational procedures. The region has a low risk of seismic activity.
