Data Centers in Ephrata
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Ephrata – Cost-Effective Mid-Atlantic Colocation
Ephrata offers a compelling data center location for organizations seeking a balance of cost-efficiency and regional accessibility in the Mid-Atlantic. It is particularly well-suited for disaster recovery, secondary workloads, and businesses serving central Pennsylvania that do not require the high carrier density of primary markets like Philadelphia or Ashburn. This market provides stable power and significant tax advantages, reducing both capital and operational expenses.
Ephrata: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity but lacks direct cloud on-ramps and major public peering points. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to primary hubs like Philadelphia or Ashburn via PNI/wave. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Based on regional industrial rates, as of September 2025. |
| Disaster Risk | High (83.99) – as of September 2025 | The primary risks are weather-related, including winter storms and strong winds. |
| Tax Incentives | Yes | A sales and use tax exemption is available for data center equipment. |
| Sales Tax | 6.00% (state base rate) | Pennsylvania state sales tax, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The Ephrata market includes service from over 3 carriers as of September 2025. Facilities offer access to regional and national providers, though the ecosystem is smaller than in major metropolitan hubs.
Direct Cloud On-Ramps There are no direct cloud on-ramps or native cloud regions in Ephrata. Secure, low-latency access to providers like AWS, Google Cloud (GCP), and Microsoft Azure is achieved through private network extensions to interconnection hubs in Philadelphia or Ashburn, VA.
Internet Exchange Points (IXPs) Public peering is not a feature of this market. Most peering is conducted privately between carriers or managed through network transit to major exchange points in nearby cities.
Bare Metal Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers such as ColoCrossing offer services in similar regional markets, with solutions accessible from Ephrata.
Power Analysis
Average Cost Of Power The estimated cost for industrial power in the Ephrata area is between $0.07 and $0.09/kWh, as of September 2025. This competitive pricing can significantly lower total operational costs compared to more expensive East Coast markets. The state's power mix is primarily generated from natural gas (~55%) and nuclear (~30%).
Power Grid Reliability Pennsylvania's power grid is engineered to support industrial operations and provides reliable service. Data centers in the region are typically supported by redundant utility feeds and substation diversity to ensure high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Ephrata's data centers serve businesses in Lancaster, Reading, Harrisburg, and the greater central Pennsylvania region. This proximity allows local enterprises to implement low-latency hybrid IT and disaster recovery solutions effectively.
Regional Market Reach From Ephrata, digital services can effectively reach a large population across the Mid-Atlantic. It serves as a strong secondary site for organizations with a primary presence in Philadelphia, Baltimore, or Northern Virginia.
Tax Advantage For Data Centers Pennsylvania offers a specific tax incentive that is highly beneficial for data center operators and tenants. The state provides a sales and use tax exemption on the purchase of computer data center equipment, which directly reduces the capital investment required for new deployments and hardware refreshes.
Natural Disaster Risk
Ephrata has a high natural disaster risk profile, with a FEMA National Risk Index score of 83.99 out of 100 as of September 2025. The risk is driven almost entirely by weather-related events rather than seismic activity.
Key risks for data center planning include severe winter weather, ice storms, hurricanes (primarily bringing strong wind and heavy rain inland), tornadoes, and riverine flooding. Infrastructure in this market is built to mitigate these specific, well-understood weather patterns.
