Data Centers in Lehigh Valley
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Lehigh Valley – Strategic Hub for Northeast Connectivity
Lehigh Valley serves as a key colocation market for businesses requiring a strategic presence between the major hubs of New York City and Philadelphia. It provides a reliable alternative for disaster recovery and primary infrastructure, balancing cost-effectiveness with proximity to dense East Coast markets. This location ensures low-latency connections to millions of end-users while mitigating the higher operational risks of primary metropolitan areas.
Lehigh Valley: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, positioned between larger Tier 1 markets. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Philadelphia and the New York/New Jersey metro area. |
| Power Cost | Not specified; estimated $0.09-0.12/kWh | Mix is ~55% natural gas, ~30% nuclear, providing stable grid performance. |
| Disaster Risk | High (84.00) – as of September 2025 | Primary risks are atmospheric and winter-related; seismic risk is minimal. |
| Tax Incentives | Yes | State-level sales and use tax exemptions on qualifying data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | Pennsylvania state sales tax. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Lehigh Valley market offers access to over 10 network providers, as of September 2025. Facilities are typically carrier-neutral, providing resilient connectivity options between Philadelphia and the New York metro.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Lehigh Valley, as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated private network extensions to nearby hubs in Philadelphia or the Northern New Jersey/New York City area.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most peering is conducted privately or routed through major exchange points in Philadelphia and New York.
Bare Metal: Bare metal server options are available from providers with a presence in the region, such as ColoCrossing, enabling direct, non-virtualized compute capacity.
Power Analysis
Average Cost Of Power: While specific industrial rates are not published, estimates based on regional data suggest a range of $0.09 to $0.12 per kWh, as of September 2025. This pricing structure offers potential savings compared to the more expensive power markets in adjacent metropolitan areas.
Power Grid Reliability: The regional power grid is robust, with a generation mix dominated by natural gas (~55%) and nuclear (~30%). This provides a stable and reliable power supply for mission-critical data center operations, supported by well-engineered distribution infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Lehigh Valley are strategically positioned to serve businesses in eastern Pennsylvania, western New Jersey, and the broader Philadelphia and New York City metropolitan areas. The location is ideal for manufacturing, healthcare, and logistics companies operating in the region.
Regional Market Reach: The market provides low-latency access to a significant portion of the Northeast United States population. It is an effective location for content delivery, application hosting, and disaster recovery sites supporting the dense urban corridors from Washington, D.C. to Boston.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption for qualifying computer data center equipment. This program directly reduces the capital expenditure required to build out or refresh technology infrastructure, lowering the total cost of ownership.
Natural Disaster Risk
Lehigh Valley 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 driven primarily by weather-related events, not seismic or coastal threats.
Key risks include severe winter weather, riverine flooding, strong winds, and drought. The area also faces moderate risks from lightning, heatwaves, and tornadoes. The absence of significant earthquake or hurricane risk makes the region a stable choice for infrastructure less susceptible to those specific hazards.
