Data Centers in Butler
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Butler, Pennsylvania – Reliable Colocation for Western PA
Butler offers a practical data center market for organizations requiring a presence in Western Pennsylvania. It serves as a cost-effective alternative to larger regional hubs, ideal for production workloads or disaster recovery sites that need to serve the greater Pittsburgh area. This market balances essential connectivity with a favorable tax climate.
Butler, Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with solid regional and national network access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Pittsburgh; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh – as of September 2025 | Reflects Pennsylvania's stable and diverse energy generation portfolio. |
| Disaster Risk | High (84.00 NRI Score) – as of September 2025 | Primarily driven by weather-related events common to the region. |
| Tax Incentives | Yes | A sales and use tax exemption is available for data center equipment. |
| Sales Tax | 6.00% (State) – as of September 2025 | No additional local sales tax in Butler County. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Butler is a smaller market with access to fewer than 10 carriers in local facilities, as of September 2025. Connectivity is primarily focused on providing reliable service to the Pittsburgh metro area rather than creating a dense interconnection hub.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Butler as of September 2025. Businesses connect to cloud providers via the nearest major hubs, such as Pittsburgh, using private network links or optimized IP transit.
Internet Exchange Points (IXPs): Public peering is not available directly in Butler. The majority of peering occurs privately between carriers or is routed through Pittsburgh's exchange points to connect with regional and national networks.
Bare Metal: Bare metal server options are available from providers serving the greater Pittsburgh region. Companies like ColoCrossing offer dedicated server solutions that can be deployed in nearby facilities.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Butler area typically range from $0.07 to $0.09/kWh, as of September 2025. These competitive costs are supported by Pennsylvania's strong energy portfolio, which consists of approximately 55% natural gas, 30% nuclear, and 10% coal. This pricing structure helps lower the total cost of ownership for compute-heavy deployments.
Power Grid Reliability: The regional power grid is well-engineered and provides reliable service. Data centers in the area are supported by a stable grid with infrastructure designed to handle industrial power loads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Butler provide low-latency connectivity to the Pittsburgh metropolitan area, located about 35 miles south. This makes it an effective location for businesses in manufacturing, healthcare, and technology that operate throughout Western Pennsylvania.
Regional Market Reach: Butler serves as an excellent disaster recovery location for primary sites in Pittsburgh, Philadelphia, or other Northeast cities. It offers a strategic position to serve end-users across Pennsylvania, Ohio, and West Virginia.
Tax Advantage For Data Centers: Pennsylvania offers a specific tax incentive program for data centers. The state provides a full sales and use tax exemption on the purchase of computer data center equipment, which significantly reduces the capital costs of building out or refreshing hardware infrastructure.
Natural Disaster Risk
Butler, Pennsylvania has a high natural disaster risk profile, with a FEMA National Risk Index score of 84.00 as of September 2025. The risk is driven by potential atmospheric and geological events rather than coastal threats.
The primary risks for infrastructure in this area include severe winter weather, ice storms, riverine flooding, strong wind events, and tornadoes. Other notable risks include potential heat waves and landslides.
