Data Centers in Butler
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Butler, Pennsylvania, USA – Regional Colocation Value
Butler, Pennsylvania, offers a viable colocation market for secondary disaster recovery and regional workloads. The market provides access to favorable tax incentives and a strategic location outside of primary data center hubs, balancing cost and risk for specific IT operations.
Butler, Pennsylvania, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity suitable for most standard business and DR applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via major hubs like Ashburn or Philadelphia via private network extensions. |
| Power Cost | ~$0.08 - $0.11/kWh | Based on regional industrial rates; provides cost predictability for operations. |
| Disaster Risk | High (84.00) – as of September 2025 | Risk profile requires thorough infrastructure and business continuity planning. |
| Tax Incentives | Yes | State-level sales and use tax exemptions on data center equipment. |
| Sales Tax | 6.00% (Pennsylvania) – as of September 2025 | Tax exemptions can significantly lower the total cost of ownership. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Butler market provides access to over 3 unique network providers, as of September 2025. This ensures sufficient redundancy and competitive pricing for local and regional connectivity needs.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Butler. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network extensions to larger interconnection hubs such as Philadelphia or Ashburn, VA.
Internet Exchange Points (IXPs): Public peering is not a feature of the local market. Most network peering is handled privately or routed through major regional IXPs in nearby metropolitan areas.
Bare Metal: Bare metal server options are available in the broader Pennsylvania region, with providers like Hivelocity and ColoCrossing offering dedicated server solutions accessible from Butler.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Butler area are estimated between $0.08 and $0.11 per kWh, as of September 2025. This competitive pricing can lead to lower operational expenditures compared to more expensive East Coast markets. The regional power mix is dominated by natural gas (~55%) and nuclear (~30%).
Power Grid Reliability: The power grid supporting Butler is well-engineered, benefiting from Pennsylvania's diverse energy generation portfolio. Data centers in the area typically have access to redundant power feeds to ensure high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Butler's data centers serve local enterprises and act as a secondary site for businesses in the greater Pittsburgh metropolitan area, which is a hub for technology, healthcare, and finance. This proximity allows for low-latency support for regional operations.
Regional Market Reach: From Butler, organizations can effectively serve end-users across Pennsylvania, Ohio, and West Virginia. Its location provides a strategic position outside the primary coastal data center clusters while maintaining good connectivity.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption for equipment used in a qualified data center. This program reduces the capital expense of deploying new hardware, making the region financially attractive for infrastructure investments.
Natural Disaster Risk
Butler has a high natural disaster risk profile, with a FEMA National Risk Index score of 84.00 out of 100, as of September 2025. This rating is driven by a combination of factors, requiring careful site selection and facility engineering.
Key risks for the region include severe winter weather, riverine flooding, tornadoes, and strong winds. Other notable risks are drought, lightning, and potential impacts from distant hurricanes, such as heavy rainfall.
