Data Centers in Vermont
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Vermont – Resilient & Renewable Infrastructure
Vermont is a strong choice for organizations prioritizing disaster recovery and green energy. The state offers geographically diverse colocation options away from primary coastal risk zones, powered by a grid with a high concentration of renewables, making it ideal for secondary deployments and ESG-focused initiatives.
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 | Nearest major cloud hubs are Boston and Montreal; private extension is an option. |
| Power Cost | $0.16-0.19/kWh | Reflects the high mix of renewable energy sources in the state's power grid. |
| Disaster Risk | Moderate (56.92) – as of September 2025 | Primary risks include severe winter weather, flooding, and wildfires. |
| Tax Incentives | Yes | A sales-tax exemption is available for qualifying data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | The base state sales tax rate for Vermont. |
Network & Connectivity Ecosystem
Vermont’s connectivity is centered on regional enterprise-grade service, not large-scale interconnection. The market contains 3 data centers and 2 providers, as of September 2025, suitable for disaster recovery and edge workloads.
Carrier Density & Carrier Neutrality The state is served by a mix of regional and national carriers. While not a dense long-haul fiber crossroads, there is sufficient network availability to support production and secondary workloads for most enterprises.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Vermont. Businesses requiring dedicated cloud connections must establish private network links (PNI or wave) to major access hubs like Boston or Montreal.
Internet Exchange Points (IXPs) Vermont does not host any major public internet exchanges. Peering is typically handled privately between carriers or routed through larger IXPs in Boston, such as Boston IX.
Bare Metal Bare metal server capacity is available through select providers. Companies like ColoCrossing can service deployments for customers needing dedicated hardware in regional facilities.
Power Analysis
Vermont’s power profile is defined by its strong commitment to renewable energy, which influences both cost and reliability.
Average Cost Of Power Industrial power costs typically range from $0.16 to $0.19/kWh, as of September 2025. This rate is higher than the national average but provides access to a grid dominated by hydro, biomass, wind, and solar power.
Power Grid Reliability The power grid is reliable, supported by a diverse portfolio of in-state renewable generation and significant imported hydroelectricity. This mix contributes to a stable and well-engineered power supply for mission-critical operations.
Market Access, Business & Tax Climate
Vermont offers a stable business environment with strategic access to key markets in the northeastern United States and Canada.
Proximity To Key Business Districts Data centers in Vermont provide geographic diversity for businesses located in the major metropolitan areas of Boston, New York, and Montreal. They serve local industries and provide an essential disaster recovery option outside the primary I-95 corridor.
Regional Market Reach The state is well-positioned to deliver low-latency services to Northern New England, upstate New York, and southern Quebec. This makes it a viable location for edge computing and content delivery targeting these specific regions.
Tax Advantage For Data Centers Vermont offers a sales tax exemption on the purchase of qualifying data center equipment, including servers, storage, and networking gear. This incentive directly reduces the capital investment required for building out or refreshing IT 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 primary environmental threats are weather-related rather than seismic.
Key risks for the region include:
- Winter Storms: Significant risk from heavy snow, ice, and extreme cold impacting logistics and infrastructure.
- Riverine Flooding: Poses a threat in low-lying areas, requiring careful site selection.
- Wildfire: A notable risk, particularly in forested areas during dry conditions.
- Landslides: A secondary risk, often triggered by heavy precipitation.
- Tornadoes: While less frequent than in other regions, tornadoes present a potential threat.
