Data Centers in Burlington
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Burlington – Reliable Northeast Edge Location
Executive Summary
Burlington, Vermont, serves as a strategic edge data center market for organizations requiring low-latency access to Northern New England and Southern Canada. Its key advantages are a power grid with a high concentration of renewables and a favorable sales tax climate for IT equipment. This combination provides a stable, cost-effective footprint for disaster recovery and regional compute.
Burlington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension from major hubs like Boston or Montreal. |
| Power Cost | ~$0.14-0.17/kWh | Power mix is primarily renewables; Vermont imports significant electricity. |
| Disaster Risk | Moderate (56.92) – as of September 2025 | Main risks are winter weather, flooding, and severe storms. |
| Tax Incentives | Yes | Includes a sales-tax exemption for qualifying data center equipment purchases. |
| Sales Tax | 6.00% – as of September 2025 | Vermont state sales tax; exemptions for DC equipment may apply. |
Network & Connectivity Ecosystem
Burlington offers a focused but reliable connectivity environment suitable for edge deployments and regional workloads.
Carrier Density & Carrier Neutrality: The market contains over 2 providers across 3 data centers, as of September 2025. This provides foundational options for redundancy and carrier-neutral interconnection.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers. Secure, private connections to AWS, Google Cloud, and Microsoft Azure are typically established via dedicated circuits to primary hubs like Boston or Montreal.
Internet Exchange Points (IXPs): Public peering is limited within Burlington. Most network interconnection is handled through private peering arrangements or by routing traffic through larger exchange points in nearby metropolitan areas.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like ColoCrossing offer services in the region.
Power Analysis
Vermont's power landscape is defined by its strong commitment to renewable energy and a stable, though not low-cost, grid.
Average Cost Of Power: Industrial power costs are estimated between $0.14 and $0.17/kWh, as of September 2025. This rate reflects the state's significant reliance on renewable sources, including hydro, biomass, and imported electricity.
Power Grid Reliability: The regional power grid is well-engineered and reliable for commercial and industrial use. Data centers in the area are supported by infrastructure capable of meeting uptime requirements for typical business operations.
Market Access, Business & Tax Climate
Burlington provides a strategic business environment with specific financial advantages for technology infrastructure investment.
Proximity To Key Business Districts: Data centers in the area serve the greater Burlington metropolitan area, including local technology firms, healthcare, and educational institutions like the University of Vermont.
Regional Market Reach: The market is well-positioned to deliver low-latency services across Vermont, upstate New York, New Hampshire, and into southern Quebec, Canada.
Tax Advantage For Data Centers: Vermont offers a significant tax incentive with a sales tax exemption for the purchase of data center equipment. This directly reduces the capital expenditure required to build or expand a technical footprint in the state.
Natural Disaster Risk
Burlington has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 56.92 out of 100, as of September 2025. The primary environmental threats are not catastrophic but require operational planning. Key risks include severe winter weather, riverine flooding, lightning, tornadoes, and earthquakes.
