Data Centers in Rhode Island
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Rhode Island – New England's Edge Interconnection Hub
Rhode Island offers a strategic colocation alternative for businesses requiring a New England presence without the higher costs of primary hubs like Boston. The market provides solid connectivity for serving the dense population centers of the Northeast, making it ideal for disaster recovery and edge computing deployments.
Rhode Island: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, though lacks the density of a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | No native cloud on-ramps; access is via network extension to Boston. |
| Power Cost | $0.16 - $0.19/kWh | Power costs are slightly above the national average, reflecting regional energy markets. |
| Disaster Risk | High (75.02) – as of September 2025 | Elevated risk profile driven primarily by coastal and winter weather events. |
| Tax Incentives | No | Rhode Island does not offer specific data center tax incentives. |
| Sales Tax | 7.00% Sales Tax | Standard state sales tax applies to equipment purchases as of September 2025. |
Network & Connectivity Ecosystem
Rhode Island's connectivity is concentrated in several carrier-neutral facilities, providing access to a sufficient blend of regional and national networks. As of September 2025, the state has 5 data centers operated by 4 distinct providers.
Carrier Density & Carrier Neutrality: Carrier density is adequate for most enterprise and edge workloads. The market contains several carrier-neutral facilities, ensuring competitive network pricing and resiliency for colocation customers.
Direct Cloud On-Ramps: There are no native public cloud on-ramps within Rhode Island as of September 2025. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, is achieved through private network extensions to the primary interconnection hub in Boston.
Internet Exchange Points (IXPs): Public peering is not a significant feature of the Rhode Island market. Most interconnection and traffic exchange occurs via private peering within local data centers or through network providers linked to major exchange points in Boston.
Bare Metal: Bare metal server options are available through providers offering dedicated infrastructure in the region. Services from companies like Hivelocity can provide on-demand compute for custom application requirements.
Power Analysis
The state's power infrastructure is stable, but costs are a consideration for large-scale deployments. The grid is heavily reliant on natural gas, which influences pricing and environmental factors.
Average Cost Of Power: Industrial electricity rates are estimated between $0.16 and $0.19 per kWh as of September 2025. These rates are higher than in many other US markets, impacting the total cost of ownership for power-intensive infrastructure.
Power Grid Reliability: The power grid supporting the state's data center locations is well-engineered and reliable for typical commercial operations. Facilities in the region leverage standard N+1 or 2N redundancies to ensure uptime.
Market Access, Business & Tax Climate
Rhode Island provides a cost-effective location for accessing the dense population centers of Southern New England.
Proximity To Key Business Districts: Data centers in Rhode Island are well-positioned to serve the business community in Providence and the surrounding area, which includes finance, healthcare, and higher education sectors.
Regional Market Reach: The state offers low-latency connectivity to the Providence, Hartford, and Boston metropolitan areas, covering millions of end-users for content delivery, application performance, and disaster recovery purposes.
Tax Advantage For Data Centers: Rhode Island does not offer specific tax incentives for data center development or equipment purchases. Businesses should model their investments based on the standard 7.00% state sales tax.
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. The state's coastal location and exposure to Atlantic weather patterns are the primary drivers of this assessment.
Key risks include hurricanes, coastal flooding, ice storms, and winter storms. Other notable risks for the region include riverine flooding, strong winds, and occasional earthquakes, though these are less frequent. Site selection and facility engineering are critical to mitigate these environmental threats.
