Data Centers in Reading
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Reading, Pennsylvania – Strategic & Cost-Effective Colocation
Reading offers a compelling alternative to major East Coast data center markets, providing strategic colocation options for businesses that prioritize cost management and disaster recovery. Its location delivers reliable infrastructure without the premium price tag of primary hubs like Philadelphia or Northern Virginia, making it ideal for secondary deployments and latency-tolerant workloads.
Reading, Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity options suitable for most business and DR requirements. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Philadelphia. Private network extensions are available. |
| Power Cost | $0.11–$0.14/kWh – as of September 2025 | Based on a diverse regional grid dominated by natural gas and nuclear. |
| Disaster Risk | High (84.00) – as of September 2025 | Primary risks are non-coastal; driven by winter weather and storm events. |
| Tax Incentives | Yes | A sales and use tax exemption for computer data center equipment is available. |
| Sales Tax | 6.00% (State) – as of September 2025 | Pennsylvania state base rate; local taxes may apply. |
Network & Connectivity Ecosystem
Reading provides a good balance of connectivity options for a secondary market, serving as a reliable node for regional operations.
Carrier Density & Carrier Neutrality: The market is served by over 5 network carriers, as of September 2025. This environment provides sufficient options for redundancy and competitive pricing within carrier-neutral facilities.
Direct Cloud On-Ramps: There are no direct, native cloud on-ramps within Reading. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through the primary interconnection hub in Philadelphia. Private network links, such as point-to-point or wavelength services, can establish secure, low-latency connections.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most network peering is conducted privately between carriers or routed through major exchange points in Philadelphia to achieve efficient traffic exchange.
Bare Metal: Bare metal server options are available in the region, typically through providers that have a presence in nearby major markets. Services from companies like Hivelocity and ColoCrossing can provide dedicated compute resources for performance-intensive applications.
Power Analysis
The power infrastructure in Reading is stable and benefits from Pennsylvania's diverse energy generation portfolio.
Average Cost Of Power: Industrial electricity rates are estimated between $0.11 and $0.14 per kWh, as of September 2025. This competitive pricing, compared to more expensive coastal markets, creates significant operational savings for power-dense deployments. The grid mix is primarily composed of natural gas (~55%) and nuclear (~30%), with smaller contributions from coal and renewables.
Power Grid Reliability: The regional grid is well-engineered to support industrial use. Data centers in the area typically source power from substations with redundant feeds, ensuring high levels of uptime for mission-critical infrastructure.
Market Access, Business & Tax Climate
Reading provides a favorable business environment with good market access and specific financial advantages for data center operators.
Proximity To Key Business Districts: Data centers in Reading serve local and regional enterprises in manufacturing, healthcare, and logistics. The city's strategic location offers a lower-cost base of operations while remaining connected to the economic activity of southeastern Pennsylvania.
Regional Market Reach: From Reading, businesses can effectively serve a large population across the mid-Atlantic. It acts as a logical disaster recovery site for companies with primary operations in Philadelphia, Baltimore, or the New York metropolitan area.
Tax Advantage For Data Centers: Pennsylvania offers a significant sales and use tax exemption on eligible computer data center equipment. This program directly reduces the capital expenditure required to build out or refresh server, storage, and networking hardware, improving the total cost of ownership.
Natural Disaster Risk
Reading 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 risks are primarily weather-related and do not include direct coastal threats.
Key environmental risks for infrastructure planning include severe winter weather, river flooding, strong winds associated with tornados and hurricanes, and drought. Other notable risks are lightning, wildfires, and landslides. This profile requires data centers to have sturdy facility engineering and well-documented emergency operating procedures.
