Data Centers in Reading
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Reading, Pennsylvania – Strategic Mid-Atlantic Colocation
Reading offers a compelling colocation alternative to major East Coast hubs, providing reliable infrastructure and significant tax advantages for businesses targeting the Mid-Atlantic region. This market is ideal for disaster recovery, secondary deployments, and latency-sensitive applications that require proximity to Philadelphia and New York City without the associated costs. Choosing Reading ensures your digital assets benefit from a stable power grid and attractive state-level incentives, directly improving operational resilience and total cost of ownership.
Reading, Pennsylvania: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; fewer long-haul carriers than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Philadelphia and Ashburn; private connectivity is available. |
| Power Cost | $0.08–$0.10/kWh | Industrial rates are competitive for the region, leveraging a diverse power mix. |
| Disaster Risk | High (84.00) – as of September 2025 | Primarily driven by atmospheric and weather-related events common to the region. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | Pennsylvania state sales tax. Exclusions apply to qualified data center equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Reading's data centers provide access to over 5 providers, as of September 2025. The facilities offer a carrier-neutral environment, ensuring resilient connectivity options through a mix of regional and national fiber networks.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Reading as of September 2025, with 0 cloud regions accessible directly. Secure, low-latency connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are achieved via private network interconnects to nearby hubs in Philadelphia or the connectivity ecosystem in Ashburn, Virginia.
Internet Exchange Points (IXPs) Most network peering is conducted privately or through major exchange points in Philadelphia, such as the Philadelphia Internet Exchange. This provides efficient traffic exchange for reaching eyeballs across the Mid-Atlantic.
Bare Metal Bare metal server options are available in the region, offering dedicated compute resources for performance-critical workloads. Providers like Hivelocity and ColoCrossing can service deployments in the broader Pennsylvania market.
Power Analysis
Average Cost Of Power Industrial electricity rates in the Reading area typically range from $0.08 to $0.10 per kWh, as of September 2025. This competitive pricing can lead to significant operational savings for compute-heavy deployments compared to more expensive coastal markets.
Power Grid Reliability Pennsylvania's power grid is reliable, supported by a diverse generation mix of natural gas (~55%), nuclear (~30%), and coal (~10%). Data centers in the region are well-engineered and often feature redundant connections to multiple substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Reading's data centers provide a strategic location for businesses in Southeastern Pennsylvania and serve as a cost-effective alternative to Philadelphia, located approximately 60 miles away. This proximity is ideal for enterprises in healthcare, manufacturing, and financial services.
Regional Market Reach From Reading, organizations can effectively serve a large population across Pennsylvania, New Jersey, Delaware, and Maryland. It is a strong location for building out disaster recovery and business continuity strategies for primary sites in New York City or Northern Virginia.
Tax Advantage For Data Centers Pennsylvania offers a significant financial incentive through its Computer Data Center Equipment Exemption Program. This program eliminates the 6% state sales and use tax on qualifying equipment purchases, substantially reducing the capital expenditure required for new builds or expansions.
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 risk is driven almost entirely by weather-related events rather than seismic or coastal threats. Key risks for data center operators to mitigate include severe winter weather, riverine flooding, tornadoes, and strong winds. Other notable risks include lightning, hail, and heatwaves.
