Data Centers in Rhode Island
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Rhode Island – Strategic Edge North of NYC
Rhode Island offers a focused data center market for organizations needing a strategic presence in Southern New England. It serves as a capable edge location, providing low-latency connectivity to the dense population centers between Boston and New York City while avoiding the premium costs of those top-tier markets. This makes it a strong choice for disaster recovery, content delivery, and latency-sensitive applications targeting the region.
Rhode Island: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access requires network extension to major interconnection hubs in nearby Boston. |
| Power Cost | $0.16/kWh - $0.19/kWh | Industrial power costs are above the U.S. national average, impacting operational budgets. |
| Disaster Risk | High (NRI Score: 75.02) | Site selection requires careful evaluation of specific high-probability risks. |
| Tax Incentives | No | The state does not offer specific tax incentive programs for data center development. |
| Sales Tax | 7.00% | State sales tax applies to equipment and services, as of July 2025. |
Network & Connectivity Ecosystem
Rhode Island's connectivity ecosystem is best understood as a satellite to the much larger Boston market. While not a major hub itself, it provides sufficient infrastructure for regional and edge workloads.
Carrier Density & Carrier Neutrality With 5 data centers, the market provides access to over 4 regional and national carriers, as of September 2025. Carrier-neutral facilities are available, offering a choice of providers for redundancy and cost management.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Rhode Island, as of September 2025. Organizations requiring dedicated, private access to major cloud providers must establish a connection to facilities in Boston, where all major clouds have a presence. This is typically achieved through private network interconnects (PNI) or wavelength services from local carriers.
Internet Exchange Points (IXPs) Public peering is limited within the state. Most network traffic is exchanged through private peering arrangements or routed through major IXPs in Boston, such as the Boston Internet Exchange (BOSIX).
Bare Metal Bare metal server options are available, providing dedicated compute resources for performance-intensive applications. Providers like Hivelocity and phoenixNAP can service the region from nearby network hubs, offering a path to dedicated hardware without capital expenditure.
Power Analysis
Average Cost Of Power Industrial electricity rates in Rhode Island typically range from $0.16/kWh to $0.19/kWh, as of September 2025. These rates are higher than the U.S. average and represent a significant factor in total cost of ownership calculations for any large-scale deployment. The grid is primarily powered by natural gas (87%).
Power Grid Reliability The power grid serving the Providence area and surrounding commercial zones is well-established and reliable. Data centers in the state are built with redundant power connections, UPS systems, and generator backup to ensure high levels of uptime, meeting standard enterprise requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Rhode Island are strategically located to serve the Providence metropolitan area, home to finance, healthcare, and university research sectors. The state’s position on the I-95 corridor provides excellent access to business districts in Boston (about an hour away) and New York City.
Regional Market Reach From Rhode Island, organizations can effectively deliver low-latency services to the entirety of Southern New England. This includes a population of several million across Rhode Island, Eastern Connecticut, and Southeastern Massachusetts.
Tax Advantage For Data Centers Rhode Island does not currently offer tax incentives specifically for data center construction or operations. As a result, standard state corporate and sales taxes apply to all equipment purchases and operational activities.
Natural Disaster Risk
Rhode Island has a High natural disaster risk profile, with a FEMA National Risk Index score of 75.02 as of September 2025. This score reflects the state's coastal location and exposure to severe Atlantic weather patterns.
Key risks for infrastructure planning include:
- Hurricanes: High probability of impact from tropical storms and hurricanes, bringing strong winds and heavy rain.
- Coastal & Riverine Flooding: Significant risk in low-lying areas from storm surge and overflowing rivers.
- Ice Storms: Severe winter weather, including ice storms, can disrupt power and logistics.
- Wildfire: While less severe than in other regions, wildfire remains a moderate background risk.
