Data Centers in Virginia

Virginia – Global Leader in Data Center Infrastructure

Virginia is the world's largest and most important data center market, offering unmatched connectivity, power infrastructure, and a favorable business climate. For any organization where uptime and low-latency access to carriers and cloud providers are critical, Virginia provides the most direct and resilient path to ensure performance and protect revenue. This concentration of digital infrastructure makes it the center of gravity for the internet.

Virginia: At A Glance

Network & Connectivity Ecosystem

Virginia, particularly the Ashburn area in Loudoun County, is the most connected location on the planet. The density of fiber, carriers, and cloud access is unparalleled, making it the primary East Coast hub for North American and transatlantic data traffic.

Carrier Density & Carrier Neutrality With over 115 unique network providers present as of September 2025, the market offers extensive choice. Enterprises can connect with nearly any provider, ensuring competitive pricing and resilient, multi-carrier network designs in a multitude of carrier-neutral facilities.

Direct Cloud On-Ramps There are over 10 dedicated cloud on-ramps connecting to 16 different cloud regions as of September 2025. This enables secure, low-latency private access directly to major cloud providers, including:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• IBM Cloud
• Oracle Cloud

Internet Exchange Points (IXPs) While public peering is available, the majority of high-volume traffic exchange in Virginia occurs through private peering and direct cross-connects inside key interconnection facilities. This private model is preferred by the hyper-scalers and large networks concentrated in the region for performance and security.

Bare Metal Dedicated server solutions are widely available from numerous providers. Companies can easily deploy bare metal infrastructure from vendors like Hivelocity and phoenixNAP to complement their colocation and cloud deployments.

Power Analysis

Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing is a significant advantage for power-intensive operations, directly reducing the total cost of ownership for large-scale deployments. The state's power mix is led by natural gas, with nuclear and coal also contributing significantly.

Power Grid Reliability The power grid, especially in data center-heavy corridors like Loudoun and Prince William counties, is well-engineered and highly reliable. Data centers are typically fed by redundant substations from Dominion Energy, which has extensive experience supporting mission-critical facilities.

Market Access, Business & Tax Climate

Virginia’s strategic location and business-friendly policies have made it a global technology hub.

Proximity To Key Business Districts Data centers in Northern Virginia offer low-latency connectivity to the Washington, D.C. metro area. This proximity is critical for government agencies, federal contractors, and the vast ecosystem of technology and finance companies in the nation's capital.

Regional Market Reach From Virginia, organizations can effectively serve a massive population base across the entire Mid-Atlantic and Northeastern United States. It is also a primary landing point for subsea cables connecting North America to Europe and Latin America.

Tax Advantage For Data Centers Virginia provides a significant sales and use tax exemption on qualifying data center equipment. This incentive directly lowers the capital expenditure required to purchase servers, storage, and networking gear, making it financially attractive to build and refresh infrastructure in the state.

Natural Disaster Risk

Virginia has a very low natural disaster risk profile, with a FEMA National Risk Index score of 27.17 out of 100 as of September 2025. This minimizes the environmental threats to data center uptime and operational stability.

The primary risks to consider are atmospheric and severe weather events rather than seismic or catastrophic threats. Key hazards include:

• Hurricane
• Riverine Flooding
• Hail
• Lightning
• Strong Wind
• Winter Weather