Data Centers in Charlottesville
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Charlottesville, Virginia – Strategic Mid-Atlantic IT Hub
Charlottesville offers a compelling alternative to the primary Northern Virginia data center market, providing a resilient and cost-effective location for disaster recovery and edge computing. It is best suited for organizations prioritizing lower operational risk and favorable tax conditions while still requiring solid connectivity to East Coast population centers. This market delivers uptime and security without the high costs of a primary hub.
Charlottesville, Virginia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity; not a primary international peering hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major on-ramp hub is Ashburn, Virginia. |
| Power Cost | $0.08–$0.10/kWh | Industrial rates are competitive for the Mid-Atlantic region. |
| Disaster Risk | Moderate (27.17) – as of September 2025 | Very low overall score with manageable, understood environmental risks. |
| Tax Incentives | Yes | Virginia offers a significant sales and use tax exemption for data center equipment. |
| Sales Tax | 5.30% – as of September 2025 | This is the base state rate; local taxes may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a secondary market, Charlottesville has a focused carrier presence, with access to approximately 3 providers locally as of September 2025. Carrier-neutral facilities offer pathways to national and regional fiber networks.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Charlottesville as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established via dedicated circuits to the primary interconnection hub in Ashburn, Virginia.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Peering is handled privately between carriers or routed through major exchange points in nearby hubs like Ashburn.
Bare Metal: Bare metal server options are available through providers that serve edge locations. Companies like Hivelocity can provision dedicated servers in regional facilities.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Charlottesville area range from approximately $0.08 to $0.10 per kWh as of September 2025. These competitive rates can significantly reduce total operational costs for compute-intensive workloads compared to more expensive power markets.
Power Grid Reliability: The regional power grid is reliable, supported by a generation mix dominated by natural gas and nuclear power as of 2020. Data centers in the area are well-engineered to leverage this stability, with standard redundant power configurations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Charlottesville serve the University of Virginia, healthcare systems, and a growing technology sector. This proximity enables low-latency connectivity for research, medical data processing, and local enterprise applications.
Regional Market Reach: Charlottesville provides effective geographic diversification from the primary Ashburn corridor. It is well-positioned to serve Central Virginia and act as a disaster recovery site for organizations with a primary presence in Washington D.C., Northern Virginia, or Richmond.
Tax Advantage For Data Centers: Virginia offers one of the most attractive tax climates for data centers in the United States. The state’s sales and use tax exemption on qualified data center equipment directly lowers the capital expense of building or expanding a facility.
Natural Disaster Risk
Charlottesville has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 27.17 as of September 2025. The area is not prone to major catastrophic events like earthquakes or hurricanes that affect other regions. Key risks are primarily weather-related and include winter storms, hail, strong winds, and potential river flooding.
