Data Centers in Reading

Reading – Resilient Failover Choice for the Northeast

Executive Summary

Reading serves as a strategic failover market for organizations seeking relief from the high costs of Philadelphia and Northern New Jersey. By using purpose-built facilities outside major metro centers, businesses secure high availability and reliable disaster recovery for Mid-Atlantic operations.

Reading: At A Glance

Network & Connectivity Ecosystem

Reading offers a mature network environment providing reliable service for regional enterprises. The market maintains steady carrier activity and diverse fiber routing for local deployments.

Carrier Density & Carrier Neutrality: The market features over 5 carriers as of September 2025. This environment, typically ranging between 5 and 10 carriers, ensures that customers have options for transport and transit, preventing vendor lock-in and allowing for resilient multi-homed configurations.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in this market as of September 2025. Local facilities typically use private network interfaces or dedicated waves to connect to primary cloud regions in Philadelphia.

Internet Exchange Points (IXPs): Public peering is limited within the city. Most high-volume traffic exchange occurs via the nearest national hubs in Philadelphia or New York.

Bare Metal: Services are available through established providers like ColoCrossing. These services offer localized compute for latency-sensitive applications as of September 2025.

Power Analysis

Reading benefits from the diversified energy portfolio of Pennsylvania, which helps maintain a steady supply even during peak demand.

Average Cost Of Power: Industrial electricity rates average approximately $0.11/kWh as of September 2025. These rates represent a significant discount over the premium prices found in nearby coastal tier-one markets, directly lowering monthly operating expenses. The regional mix includes approximately 55% natural gas, 30% nuclear, 10% coal, and 5% renewables.

Power Grid Reliability: The local grid is supported by a multi-substation architecture engineered for industrial demand. Redundancy is a standard feature for purpose-built facilities in the Berks County area, ensuring reliable uptime.

Market Access, Business & Tax Climate

Reading sits at a geographic sweet spot, offering enterprise-grade infrastructure without the big-city price tag.

Proximity To Key Business Districts: Data centers here are centrally located to serve the healthcare, manufacturing, and financial services sectors of the Lehigh Valley and Greater Philadelphia. This proximity allows for efficient data processing for regional branch offices.

Regional Market Reach: The market effectively serves a population of millions across Eastern Pennsylvania and into the tri-state area. It is a prime spot for edge deployments targeting the 222 and 422 corridors.

Tax Advantage For Data Centers: Pennsylvania offers a specific sales and use tax exemption for computer data center equipment. This program significantly reduces the capital expenditure required for hardware refreshes and initial deployments.

Natural Disaster Risk

The regional risk profile is High with a score of 83.99 as of September 2025. While the area is safe from most coastal threats, it faces specific environmental challenges that require resilient facility engineering.

The primary natural hazards include:

• Severe Weather: Strong winds, lightning, and tornadoes represent the highest frequency risks.
• Winter Conditions: Ice storms and heavy winter weather can impact physical access and external infrastructure.
• River Flooding: Risks are concentrated near the Schuylkill River, though data centers are typically built on higher ground.
• Heat Waves: Sustained high temperatures during summer months require sturdy cooling systems.
• Drought: Long-term water availability can affect cooling for specific facility types.