Data Centers in Vermont
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Vermont – Green Power and Low-Risk Colocation
Executive Summary
Vermont is an ideal market for organizations prioritizing sustainability and operational resilience. Its power grid, dominated by renewable energy, supports corporate ESG goals while lowering carbon footprints. The state's low natural disaster risk profile makes it a strong choice for secondary infrastructure deployments and disaster recovery sites that require high uptime away from primary coastal hubs.
Vermont: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though it lacks major national peering hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via Boston or Montréal. Private network extensions are available. |
| Power Cost | $0.17 - $0.20/kWh (est.) | Driven by a high mix of renewables. Reduces carbon footprint for operations. |
| Disaster Risk | Moderate (56.92 NRI Score) | Low overall score, but winter weather and flooding are primary concerns. |
| Tax Incentives | Yes | Sales tax exemption is available for data center equipment and software. |
| Sales Tax | 6.00% – as of September 2025 | The base state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market includes 3 data centers and 2 service providers as of September 2025. Connectivity is supplied by a focused group of regional and national carriers, with carrier-neutral facilities offering access to multiple networks.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Vermont. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure via network providers with points of presence in major regional hubs such as Boston or Montréal. Private network extensions can establish secure, low-latency connections.
Internet Exchange Points (IXPs): Vermont does not host any public internet exchanges. Most network peering is conducted privately between carriers or routed through major exchange points in nearby metropolitan areas.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer solutions that can serve customers in Vermont.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated to be between $0.17 and $0.20 per kWh as of September 2025. While higher than the national average, the cost reflects a grid mix composed primarily of reliable renewable sources, including hydro, biomass, wind, and solar power.
Power Grid Reliability: Vermont's power grid is well-engineered and stable, benefiting from significant investment in renewable generation. The energy mix provides resilient baseload power, crucial for maintaining data center uptime, especially during severe weather events common to the Northeast.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Vermont serve the state's primary economic centers, including Burlington. They support local government, healthcare networks, educational institutions like the University of Vermont, and a growing technology sector.
Regional Market Reach: Geographically, Vermont is well-positioned to serve as a disaster recovery site for the Boston, Hartford, and New York City metro areas. It also provides a low-latency connection point for businesses operating in southern Québec, including Montréal.
Tax Advantage For Data Centers: Vermont offers a significant tax incentive by providing a sales tax exemption on computer and data center equipment. This policy directly reduces the capital expenditure required to build, expand, or refresh technology infrastructure within the state.
Natural Disaster Risk
Vermont has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 56.92 as of September 2025. The rating indicates a lower probability of disruption compared to many coastal or seismically active regions, making it a suitable location for risk-averse operations.
The primary environmental risks for infrastructure in Vermont include severe winter weather, riverine flooding, cold waves, and the remnants of hurricanes bringing heavy rainfall. Other notable risks include tornadoes and landslides.
