Data Centers in Hanover
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Hanover, Pennsylvania, USA – Reliable Mid-Atlantic Colocation
Hanover offers a strategic location for workloads requiring access to the Mid-Atlantic region without the higher costs of primary data center markets. It is an effective site for disaster recovery and secondary deployments, providing solid regional connectivity and significant tax advantages for data center equipment. This market ensures operational resilience and cost control for businesses serving Pennsylvania and the Baltimore-Washington corridor.
Hanover, Pennsylvania, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity; not a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access major clouds via network extensions from hubs like Philadelphia or Ashburn, VA. |
| Power Cost | $0.07 - $0.09/kWh – as of September 2025 | Competitive rates compared to major East Coast markets, enhancing total cost of ownership. |
| Disaster Risk | High (84.00) – as of September 2025 | Primarily driven by atmospheric and weather-related events common to the region. |
| Tax Incentives | Yes | State-level sales and use tax exemption for qualifying data center equipment. |
| Sales Tax | 6.00% (state base rate) – as of September 2025 | The data center equipment exemption provides substantial savings on capital expenditures. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Hanover is a secondary market with access to over 7 network providers, as of September 2025. The local data center provides carrier-neutral access, enabling interconnection with regional and national networks to serve the Mid-Atlantic.
Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within Hanover, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through private network links to major interconnection hubs in Philadelphia, PA or Ashburn, VA.
Internet Exchange Points (IXPs): Public peering is not available directly in Hanover. Most network peering is conducted privately between carriers or occurs in nearby major markets like Philadelphia, which hosts several internet exchanges.
Bare Metal: Bare metal server options are available in the region, typically through providers with a presence in nearby larger markets. Companies like ColoCrossing offer dedicated server solutions that can serve customers in this area.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Hanover area are estimated between $0.07 and $0.09 per kWh, as of September 2025. These competitive power costs make the market financially attractive for compute-intensive operations compared to more expensive coastal hubs.
Power Grid Reliability: Pennsylvania's power grid is reliable, supported by a diverse energy mix dominated by natural gas and nuclear generation. Data centers in the region are engineered with redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Hanover provides a strategic location between Harrisburg, PA, and Baltimore, MD. This proximity is ideal for supporting local manufacturing, logistics, and healthcare industries while serving as a disaster recovery site for enterprises in major nearby cities.
Regional Market Reach: From Hanover, businesses can effectively deliver low-latency services to a significant population across Pennsylvania, Maryland, Delaware, and southern New Jersey. It serves as a solid edge location or secondary site for Mid-Atlantic operations.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption on computer data center equipment. This program drastically reduces the upfront capital cost of deploying new hardware and infrastructure, making the state financially competitive for new builds and expansions.
Natural Disaster Risk
Hanover has a high natural disaster risk profile, with a FEMA National Risk Index score of 84.00 out of 100, as of September 2025. The risk is not driven by a single catastrophic threat but by an accumulation of several moderate-to-high frequency weather events.
Key risks include severe winter weather, tornadoes, riverine flooding, and strong winds. Other notable risks for the area are lightning, hail, and drought. The risk profile demands that data centers are built with sturdy infrastructure to withstand these common regional hazards.
