Data Centers in Lehigh Valley
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Lehigh Valley – Strategic Hub for Northeast Connectivity
The Lehigh Valley, Pennsylvania, serves as a crucial data center market for organizations requiring low-latency connections to major East Coast hubs like New York City and Philadelphia without the associated high costs and risks. This market is ideal for disaster recovery, secondary production sites, and edge deployments that demand a balance of performance, affordability, and physical security. Its strategic location delivers robust network access and favorable operating conditions, safeguarding critical infrastructure and ensuring consistent application performance.
Lehigh Valley: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with good carrier diversity, but limited direct international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is primarily through major hubs like Philadelphia or the New York/New Jersey metro. |
| Power Cost | $0.08 - $0.11/kWh | Based on a diverse grid dominated by natural gas and nuclear power. |
| Disaster Risk | High (84.00) – as of September 2025 | Risk profile is driven by winter weather, thunderstorms, and potential for flooding. |
| Tax Incentives | Yes | Pennsylvania offers a sales and use tax exemption for data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | Pennsylvania state sales tax rate. |
Network & Connectivity Ecosystem
Lehigh Valley provides a solid foundation for network-dependent operations, leveraging its proximity to primary East Coast internet corridors.
Carrier Density & Carrier Neutrality: The market features access to over 10 network providers, as of September 2025. Multiple carrier-neutral facilities ensure competitive pricing and resilient network design options for colocation and bare metal customers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Lehigh Valley, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via dedicated private network extensions or wavelength services to nearby hubs in Philadelphia and the New York/New Jersey metro area.
Internet Exchange Points (IXPs): Public peering is limited within the immediate market. Most network peering is conducted privately between carriers or routed through major exchange points in Philadelphia, such as the Philadelphia Internet Exchange, to optimize traffic flow.
Bare Metal: Bare metal server options are available, providing dedicated, high-performance computing resources. Providers like Hivelocity and ColoCrossing offer solutions in the region, enabling custom hardware deployments without capital expenditure.
Power Analysis
Pennsylvania's energy infrastructure offers a reliable and reasonably priced power supply for data center operations.
Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.11 per kWh, as of September 2025. This competitive pricing structure helps lower the total cost of ownership for high-density compute environments.
Power Grid Reliability: The regional power grid is well-engineered, drawing from a diverse generation mix of natural gas (approximately 55%), nuclear (30%), and coal (10%). Major data center zones are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Lehigh Valley's business environment is enhanced by its strategic location and supportive state-level policies.
Proximity To Key Business Districts: The market provides low-latency connectivity to the financial, pharmaceutical, and media industries in New York City and Philadelphia. This proximity makes it an excellent location for disaster recovery and business continuity operations.
Regional Market Reach: From Lehigh Valley, organizations can effectively serve a vast population across the Mid-Atlantic and Northeastern United States. The location is optimal for content delivery, application acceleration, and reaching end-users with minimal delay.
Tax Advantage For Data Centers: Pennsylvania provides a significant sales and use tax exemption on computer data center equipment. This program directly reduces the capital investment required for new builds or equipment refreshes, making the state financially attractive for large-scale deployments.
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 primary environmental threats are meteorological. Key risks for data center operators to engineer for include winter weather (ice storms, blizzards), severe thunderstorms (lightning, strong wind), and riverine flooding. The risk profile also includes tornadoes, heatwaves, and wildfires, though these are typically less frequent or severe than in other national markets.
