Data Centers in Central Pa
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Central Pennsylvania – Resilient Mid-Atlantic Colocation
Executive Summary
Central Pennsylvania is an excellent market for organizations that need low-latency connectivity to the major East Coast hubs of Ashburn, Philadelphia, and New York City without the associated high costs and risks. The region provides a strategic colocation alternative, combining favorable tax incentives and a resilient power grid. This makes it a strong choice for disaster recovery, secondary compute zones, and latency-sensitive applications serving the Mid-Atlantic.
Central Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity with access to major East Coast fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extensions to primary hubs in Ashburn and New Jersey. |
| Power Cost | $0.07 – $0.09/kWh, as of September 2025 | The stable and diverse grid mix helps maintain competitive industrial power rates. |
| Disaster Risk | High (NRI Score: 84.0), as of September 2025 | The primary risks are severe winter weather, flooding, and strong winds. |
| Tax Incentives | Yes | Sales and use tax exemption is available for computer data center equipment. |
| Sales Tax | 6.00% (state base rate), as of September 2025 | Local taxes may apply, but data center-specific exemptions offer significant savings. |
Network & Connectivity Ecosystem
Central Pennsylvania offers strategic connectivity without the congestion of primary markets. It serves as a key routing point between other major data center clusters.
Carrier Density & Carrier Neutrality: The market provides access to over 5 carriers, as of September 2025. Facilities are carrier-neutral, enabling resilient network designs by connecting to multiple backbone providers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Central Pennsylvania. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established through private connectivity to network hubs in Ashburn, VA, and the New York/New Jersey metro area.
Internet Exchange Points (IXPs): Public peering is limited in the immediate market. Most interconnection is handled through private peering within colocation facilities or by leveraging IXPs in nearby hubs like Philadelphia.
Bare Metal: Bare metal server solutions are available from providers in the region. Companies like ColoCrossing offer dedicated compute resources for workloads requiring direct hardware access.
Power Analysis
The region's power infrastructure is a significant advantage, characterized by reliability and a favorable cost structure.
Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing, combined with a grid powered heavily by natural gas and nuclear, offers predictable operational expenses for high-density deployments.
Power Grid Reliability: The electrical grid is well-engineered and benefits from a diverse energy mix, with significant generation from stable nuclear and natural gas sources. Major data center locations are supported by infrastructure designed for high uptime requirements.
Market Access, Business & Tax Climate
Central Pennsylvania provides a business-friendly environment with excellent access to major commercial and population centers across the Northeast.
Proximity To Key Business Districts: Data centers in this market are strategically located to serve the state capital of Harrisburg and key commercial centers in Lancaster, York, and Reading. This proximity supports regional enterprises and public sector agencies.
Regional Market Reach: The market's primary strength is its ability to provide low-latency connectivity to over 50 million people. It can effectively serve end-users in Philadelphia, Baltimore, Washington D.C., and the New York City metro area.
Tax Advantage For Data Centers: Pennsylvania offers a specific sales and use tax exemption for equipment used in data centers. This program significantly lowers the capital cost of deploying or upgrading servers, storage, and networking hardware, directly improving the return on investment.
Natural Disaster Risk
Central Pennsylvania has a High natural disaster risk profile, with a Federal Emergency Management Agency (FEMA) National Risk Index score of 84.0 out of 100, as of September 2025. While free from major seismic or coastal threats, the region is exposed to significant weather-related events.
Key risks for data center operations include severe winter weather (ice storms, cold waves), riverine flooding, strong winds from remnant hurricanes, and tornadoes. Site selection and facility engineering are critical to mitigate these potential disruptions.
