Data Centers in Charlottesville
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Charlottesville – Stable, Emerging Edge Market
Charlottesville serves as a strategic edge data center market, ideal for organizations requiring low-latency compute closer to users in central Virginia. Its primary advantage is providing a cost-effective and resilient alternative to the primary data center hubs in Northern Virginia, supporting regional enterprise applications and disaster recovery initiatives. This location ensures high-performance delivery for local academic, healthcare, and commercial sectors.
Charlottesville: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with primary interconnection points located in Northern Virginia. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via private extension to the Ashburn/Northern Virginia hub. |
| Power Cost | $0.08-0.10/kWh – as of September 2025 | Based on a natural gas-heavy mix, offering predictable operating expenses. |
| Disaster Risk | Moderate (27.17 NRI Score) – as of September 2025 | Primary risks are atmospheric; seismic and significant flooding risks are very low. |
| Tax Incentives | Yes | Virginia offers a sales and use tax exemption for data center equipment. |
| Sales Tax | 5.30% (state base rate) – as of September 2025 | Competitive state-level sales tax applicable to non-exempt purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Charlottesville has a focused connectivity ecosystem with access to over 3 carriers as of September 2025. The market offers carrier-neutral facilities, ensuring competitive network pricing and resiliency by allowing tenants to connect with their provider of choice.
Direct Cloud On-Ramps As of September 2025, there are no direct cloud on-ramps within Charlottesville. Secure, high-speed access to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, is achieved via dedicated network connections to the primary interconnection hub in Ashburn, Northern Virginia.
Internet Exchange Points (IXPs) Public peering is not established locally. Most peering occurs privately or through regional and national exchanges located in the Northern Virginia data center corridor, which is easily accessible via redundant fiber routes.
Bare Metal Bare metal server options are available in the region, providing dedicated compute for performance-sensitive workloads. Providers such as Hivelocity can serve customers with deployments in the broader Virginia area.
Power Analysis
Average Cost Of Power Industrial power costs in the Charlottesville area are estimated between $0.08 and $0.10 per kWh as of September 2025. This competitive pricing helps reduce the total cost of ownership for compute-intensive deployments. The state's power mix is led by natural gas, with significant contributions from nuclear energy.
Power Grid Reliability The power grid serving the region is well-engineered and stable, typical of established US markets. Data centers in the area benefit from reliable utility service, reducing the reliance on backup generation for minor power events.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Charlottesville provide low-latency connectivity to the University of Virginia, regional healthcare systems, and a growing technology sector. This proximity is critical for applications in research, telemedicine, and education that require rapid data processing.
Regional Market Reach The market effectively serves central and western Virginia, offering a robust platform for content delivery, application hosting, and disaster recovery for businesses based in Richmond, Lynchburg, and surrounding areas.
Tax Advantage For Data Centers Virginia provides a significant sales and use tax exemption on qualifying data center equipment, software, and related items. This incentive directly lowers the capital expenditure required to deploy and refresh hardware, making the state financially attractive for new and expanding data center projects.
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 risk landscape is dominated by atmospheric and weather-related events rather than catastrophic geological threats. Key risks include strong wind, hail, winter weather, lightning, and riverine flooding. The risks from hurricanes and earthquakes are present but rated as very low.