Data Centers in Butler
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Butler, Pennsylvania, USA – Strategic Colocation With Tax Advantages
Butler, Pennsylvania provides a compelling alternative to major East Coast data center markets. It is best suited for organizations prioritizing lower total cost of ownership through significant tax incentives and stable power costs. This market delivers a strategic location for disaster recovery, secondary workloads, and serving regional users across the Mid-Atlantic and Midwest.
Butler, Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity for edge and disaster recovery deployments. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access cloud providers via network extensions from hubs like Ashburn, VA. |
| Power Cost | $0.07 – $0.09/kWh (est.) | Competitive industrial rates with a diverse grid fuel mix. |
| Disaster Risk | High (84.00 NRI Score) | Comprehensive site selection and facility engineering are critical. |
| Tax Incentives | Yes | Sales and use tax exemption on computer data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | State-level tax, with key exemptions available for data centers. |
Network & Connectivity Ecosystem
The connectivity landscape in Butler is well-suited for regional enterprise and disaster recovery applications. While not a primary interconnection hub, it offers reliable access to national networks.
Carrier Density & Carrier Neutrality The market provides access to over 3 national and regional carriers, as of September 2025. Facilities offer carrier-neutral environments, enabling choice and cost control for tenants.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Butler as of September 2025. Private network connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are established through carrier services extending to the primary interconnection hub in Ashburn, Virginia.
Internet Exchange Points (IXPs) Public peering is not a central feature of this market. Most interconnection is handled via private peering arrangements or by routing traffic through nearby regional hubs like Pittsburgh.
Bare Metal Bare metal server options are available in the broader Pennsylvania region. Providers such as Hivelocity and ColoCrossing can serve customers with dedicated infrastructure needs.
Power Analysis
Pennsylvania offers a stable and cost-effective power environment, benefiting from a diverse and resilient energy grid.
Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh, as of September 2025. These competitive costs can significantly reduce operational expenses compared to more expensive coastal markets. The grid mix is dominated by natural gas (~55%) and nuclear (~30%), providing reliable baseload power.
Power Grid Reliability The power grid serving Western Pennsylvania is well-engineered and supports the needs of industrial users. Data centers in the area are typically fed by redundant power sources from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Butler's location and business-friendly tax policies make it an attractive site for data center investment.
Proximity To Key Business Districts The market is located near Pittsburgh, providing effective support for the region's concentration of healthcare, finance, education, and technology industries.
Regional Market Reach From Butler, organizations can effectively serve a large population across Pennsylvania, Ohio, West Virginia, and parts of New York. It is a strategic location for disaster recovery sites for businesses with primary operations in New York City or Northern Virginia.
Tax Advantage For Data Centers Pennsylvania offers a significant financial benefit through its Computer Data Center Equipment Exemption Program. This program eliminates the 6% state sales and use tax on qualifying equipment purchases, directly lowering the capital expense of building or refreshing a data center footprint.
Natural Disaster Risk
The Butler area has a High natural disaster risk profile, with a FEMA National Risk Index score of 84.00 as of September 2025. Facility design and site selection must account for a range of potential events. The primary risks include severe winter weather, tornados, riverine flooding, strong winds, and occasional hurricane remnants.
