Data Centers in Hanover
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Hanover, Pennsylvania – Reliable Mid-Atlantic Edge Colocation
Executive Summary
Hanover, Pennsylvania offers a compelling colocation market for enterprises seeking cost-effective edge computing or disaster recovery infrastructure. It provides a strategic alternative to the higher-cost data center hubs of Northern Virginia and New York, delivering reliable power and connectivity to serve the broader Mid-Atlantic region. This market is ideal for businesses prioritizing budget and regional performance over direct cloud access.
Hanover, Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional network access, but not a primary international hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | The nearest major cloud hub is Ashburn, VA; private connectivity is required. |
| Power Cost | $0.07 - $0.09/kWh — as of September 2025 | Based on state averages for industrial use. |
| Disaster Risk | High (NRI Score: 84.00) — as of September 2025 | Primarily driven by weather events like winter storms and flooding. |
| Tax Incentives | Yes — Sales and use tax exemption for data center equipment. | The state's program directly reduces capital expenses on hardware deployments. |
| Sales Tax | 6.00% — as of September 2025 | Pennsylvania's base state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Hanover features a focused connectivity ecosystem with access to over 5 carriers, as of September 2025. While not as dense as a primary market, this provides sufficient redundancy for most enterprise and edge workloads.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Hanover, as of September 2025. Businesses requiring dedicated cloud connections must establish private network links to the primary interconnection hub in Ashburn, Virginia.
Internet Exchange Points (IXPs): Public peering is limited in the immediate Hanover area. Most network peering is handled privately between carriers or by connecting to major exchanges in nearby hubs like Philadelphia or Ashburn.
Bare Metal: Bare metal server options are available, providing a practical solution for performance-sensitive applications that require dedicated hardware. Providers like ColoCrossing offer services suitable for the regional market.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the region is estimated between $0.07 and $0.09/kWh, as of September 2025. This competitive pricing offers significant operational savings compared to more expensive East Coast markets.
Power Grid Reliability: Pennsylvania's power grid is reliable, supported by a diverse generation portfolio of natural gas (~55%), nuclear (~30%), and coal (~10%). This mix ensures stable and well-engineered power delivery to data center facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Hanover's data centers are strategically positioned to serve businesses in south-central Pennsylvania, including Harrisburg, as well as the Baltimore and northern Washington D.C. metropolitan areas. This location is ideal for logistics, manufacturing, and regional enterprise workloads.
Regional Market Reach: The market provides low-latency connectivity to a large population across the Mid-Atlantic. It is an effective base for content delivery, application hosting, and disaster recovery services targeting this geography.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption on the purchase of computer data center equipment. This program makes it more affordable to build out or refresh server, storage, and networking hardware.
Natural Disaster Risk
Hanover has a high Natural Disaster Risk score of 84.00, according to FEMA's National Risk Index, as of September 2025. This rating reflects a national comparison where certain weather-related events are more frequent than in other parts of the country. The primary risks for data center planning and mitigation are severe winter weather and ice storms, riverine flooding, and the remnants of hurricanes, which can bring strong winds and heavy rain. Other notable risks include tornadoes, heat waves, and drought.
