Data Centers in Burlington
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Burlington – Resilient Hub for Green-Powered IT
Executive Summary
Burlington, Vermont offers a unique value proposition for organizations prioritizing ESG goals and operational resilience. Its power grid is dominated by renewable energy sources, and the state presents a low-risk natural disaster profile. This market is ideal for secondary disaster recovery sites and workloads serving the New England and southern Canadian markets that require high uptime and a clean energy footprint.
Burlington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but not a primary international network hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via network extensions to major hubs like Boston or Montreal. |
| Power Cost | $0.17 - $0.21/kWh (est.) | Driven by a strong focus on renewable sources and imported electricity. |
| Disaster Risk | Moderate (56.92 Score) – as of September 2025 | Relatively low risk profile compared to many U.S. markets. |
| Tax Incentives | Yes | Includes a sales and use tax exemption for qualifying data center equipment. |
| Sales Tax | 6.00% (State Base Rate) – as of September 2025 | The equipment-specific exemption provides significant project cost savings. |
Network & Connectivity Ecosystem
Burlington is a regional connectivity point rather than a primary interconnection hub. The digital ecosystem is sufficient for local and regional needs but relies on larger markets for global access.
Carrier Density & Carrier Neutrality The market has access to over 2 network providers, as of September 2025. Carrier-neutral colocation facilities provide the primary access points to these networks, ensuring competitive and resilient connectivity options for customers.
Direct Cloud On-Ramps There are no direct cloud on-ramps located within Burlington, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions or dedicated circuits to major peering locations in Boston and Montreal.
Internet Exchange Points (IXPs) Public peering is not a major feature of this market. Most network interconnection occurs privately between carriers or is routed through major exchange points in nearby metropolitan hubs.
Bare Metal Bare metal server options are available in the region, often through providers that can deploy into local data centers or offer services from nearby markets. Providers like Hivelocity and ColoCrossing can service deployments in secondary locations.
Power Analysis
Vermont's power landscape is defined by its strong commitment to renewable energy and grid stability.
Average Cost Of Power Industrial power costs are estimated between $0.17 and $0.21/kWh, as of September 2025. While higher than the national average, the price reflects a grid powered primarily by renewable sources, including hydro, biomass, wind, and solar, which supports corporate ESG initiatives.
Power Grid Reliability The regional power grid is well-engineered and reliable. The emphasis on diverse renewable sources and significant imported electricity contributes to a stable supply suitable for mission-critical data center operations.
Market Access, Business & Tax Climate
Burlington provides a stable business environment with specific advantages for data center operators.
Proximity To Key Business Districts Data centers in the area serve local enterprises, the University of Vermont, and the region's healthcare and technology sectors. Its location offers a strategic option for businesses operating throughout New England.
Regional Market Reach The market effectively serves Vermont, New Hampshire, and upstate New York. It also provides a U.S.-based, low-latency option for businesses with customers or operations in nearby Montreal, Canada.
Tax Advantage For Data Centers Vermont offers a compelling sales tax exemption on computer and data center equipment. This incentive directly reduces the capital expenditure required for new builds or hardware refreshes, improving the total cost of ownership.
Natural Disaster Risk
Vermont has a moderate natural disaster risk profile, making it a desirable location for disaster recovery and business continuity. The FEMA National Risk Index score is 56.92 out of 100, which is considered relatively low compared to other parts of the country, as of September 2025. Key risks include severe winter weather, riverine flooding, cold waves, and residual effects from hurricanes.
