Data Centers in Vermont
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Vermont – Resilient Infrastructure, Renewable Power
Vermont offers a stable and secure location for secondary or disaster recovery data center deployments. The state's key advantages are its low-density environment, access to a power grid dominated by renewable energy, and a favorable sales tax structure for data center equipment. It is an ideal market for organizations prioritizing sustainability and operational resilience over lowest-latency access to major financial hubs.
Vermont: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with reliable connectivity, but not a primary interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Boston and New York; access is via private network extension. |
| Power Cost | $0.15 - $0.18/kWh | Power mix is primarily renewables; rates are competitive for the Northeast region. |
| Disaster Risk | Moderate (56.92) – as of September 2025 | Lower risk profile than coastal locations, with winter weather being the primary concern. |
| Tax Incentives | Yes | State provides a sales tax exemption specifically for qualifying data center equipment purchases. |
| Sales Tax | 6.00% – as of September 2025 | Base state sales tax rate, with specific exemptions available for data centers. |
Network & Connectivity Ecosystem
Vermont is a regional market with focused connectivity options rather than a dense, international hub.
Carrier Density & Carrier Neutrality The state has over 2 carriers offering services, as of September 2025. Connectivity is sufficient for business needs, with services from regional and national providers available at the few colocation facilities. Carrier neutrality is available, but options are limited compared to major metro markets.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Vermont, as of September 2025. Secure, low-latency connections to providers like AWS, Google Cloud (GCP), and Microsoft Azure are achieved via dedicated circuits to primary data center markets such as Boston or the New York/New Jersey metro area.
Internet Exchange Points (IXPs) There are no major public internet exchanges in Vermont. Most network peering is conducted privately or routed through major IXPs in Boston and New York City to ensure efficient traffic exchange.
Bare Metal Bare metal server options are available, typically provided by national providers that can deploy hardware into the region. Providers like Hivelocity and phoenixNAP can serve customers requiring dedicated infrastructure in the Northeast.
Power Analysis
Vermont stands out for its commitment to renewable energy, which dominates its power generation mix.
Average Cost Of Power Industrial power costs typically range from $0.15 to $0.18/kWh, as of September 2025. The state's reliance on hydro, biomass, wind, and solar power provides a stable and green energy source, which can be a significant advantage for companies with sustainability goals.
Power Grid Reliability The power grid is reliable and well-maintained. Data centers in the state are supported by infrastructure capable of delivering the uptime required for mission-critical operations, though the network is less dense than in major metropolitan areas.
Market Access, Business & Tax Climate
Vermont's business climate is geared toward stability and targeted incentives.
Proximity To Key Business Districts Data centers in Vermont serve local and regional enterprises and can act as strategic disaster recovery sites for businesses located in the Boston-New York corridor. This proximity provides a valuable off-site location that is geographically separate but still accessible.
Regional Market Reach The state is well-positioned to serve users across New England, including New Hampshire and Maine, as well as upstate New York and parts of southeastern Canada. It provides a good location for content delivery and services targeted at this regional population.
Tax Advantage For Data Centers Vermont offers a significant financial incentive through a sales-tax exemption on computer and data center equipment. This policy directly lowers the capital expenditure required for building a new facility or refreshing existing hardware, making investments more cost-effective.
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. Its inland location protects it from the primary coastal threats that affect much of the Northeast.
Key risks include severe winter weather, riverine flooding, and the remnants of hurricanes. Other notable risks are cold waves, heat waves, and tornadoes. The overall risk level is significantly lower than in many other parts of the country, making it a stable location for critical infrastructure.
