Data Centers in Reading
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Reading – Cost-Effective Mid-Atlantic Colocation
Reading, Pennsylvania offers a compelling data center market for organizations that require proximity to major East Coast hubs like Philadelphia and New York City but want to avoid the premium costs. It is an excellent choice for disaster recovery, secondary workloads, and latency-tolerant applications that benefit from significant state tax incentives. This market ensures reliable performance and operational savings for strategic IT deployments.
Reading: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity suitable for most business applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connection is available via network extension from nearby Philadelphia. |
| Power Cost | $0.08–$0.11/kWh – as of September 2025 | Power costs are competitive for the Mid-Atlantic region. |
| Disaster Risk | High (NRI Score: 83.99) – as of September 2025 | Primarily driven by weather-related events common to the region. |
| Tax Incentives | Yes | DC-specific sales and use tax exemptions are available. |
| Sales Tax | 6.00% (Pennsylvania state) – as of September 2025 | Favorable tax exemptions on equipment can lower total project cost. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Reading market is served by over 5 national and regional carriers as of September 2025. Facilities offer carrier-neutral access, providing a good range of options for redundancy and competitive pricing.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Reading as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated circuits to interconnection hubs in Philadelphia.
Internet Exchange Points (IXPs): Peering is primarily conducted through private interconnects or via IXPs in Philadelphia. This provides reliable and low-latency access to major content and application networks.
Bare Metal: Bare metal server options are available in the region, with providers like Hivelocity and ColoCrossing offering dedicated server solutions from nearby data centers.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Reading area range from approximately $0.08 to $0.11/kWh as of September 2025. These competitive rates, combined with a diverse power mix, help manage operational expenditures effectively. Pennsylvania's grid is powered primarily by natural gas (~55%) and nuclear (~30%).
Power Grid Reliability: The regional power grid is well-engineered, supported by a mix of generation sources that contribute to stable and reliable power delivery for critical data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Reading provide low-latency connectivity to the commercial centers of southeastern Pennsylvania, including Philadelphia, Allentown, and Harrisburg. This supports regional business operations and edge computing strategies.
Regional Market Reach: Reading serves as an effective colocation site for the Mid-Atlantic, reaching a large population base across Pennsylvania, New Jersey, Delaware, and Maryland. It is an ideal location for disaster recovery sites for enterprises in Philadelphia and New York City.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption for equipment purchased for a qualified data center. This program substantially reduces the capital investment required for servers, storage, and networking hardware, making the region financially attractive.
Natural Disaster Risk
Reading has a High natural disaster risk profile, with a FEMA National Risk Index score of 83.99 as of September 2025. The risk score is not an indicator of certainty but of relative vulnerability compared to the rest of the United States.
Key risks for consideration include winter weather, strong winds, riverine flooding, and thunderstorms. Other notable risks are drought, earthquakes, and heatwaves. Data center selection should prioritize facilities with proven mitigation strategies for these specific regional hazards.
