Data Centers in Charlottesville
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Charlottesville – A Strategic Virginia Colocation Alternative
Charlottesville offers a compelling colocation alternative to the hyper-scaled Northern Virginia market, providing a strategic location for disaster recovery and edge computing. This market is ideal for organizations prioritizing cost management and geographic diversity while retaining access to the rich connectivity ecosystem of the East Coast. Its position allows businesses to serve central Virginia with low latency and maintain a resilient secondary site away from the primary Ashburn hub.
Charlottesville: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with solid regional connectivity options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hub is Ashburn, VA. Private connectivity is available. |
| Power Cost | $0.07 - $0.09/kWh – as of September 2025 | Rates are competitive, benefiting from a diverse regional power mix. |
| Disaster Risk | Moderate (27.17 NRI Score) – as of September 2025 | Overall risk is moderate, with no single catastrophic threat dominating the profile. |
| Tax Incentives | Yes | Virginia offers a sales and use tax exemption on data center equipment. |
| Sales Tax | 5.30% (Virginia) – as of September 2025 | The state-level sales tax applies to non-exempt purchases and services. |
Network & Connectivity Ecosystem
As a smaller market, Charlottesville's ecosystem is more focused than a primary hub. It provides essential connectivity for regional and secondary deployments.
Carrier Density & Carrier Neutrality: The market features over 3 carriers as of September 2025. While not a dense hub, this provides sufficient diversity for most enterprise and disaster recovery applications.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Charlottesville as of September 2025. The nearest access point is Ashburn, where all major cloud providers have a significant presence. Secure, private connectivity to these hubs is readily available via dedicated circuits.
Internet Exchange Points (IXPs): Public peering is limited in Charlottesville. Most peering is handled privately or routed through the major internet exchanges in Ashburn, such as DE-CIX and Equinix IX.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers such as Hivelocity can serve the region, often deploying from nearby East Coast data centers.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Charlottesville area typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing can yield significant operational savings compared to more congested markets. The state's power mix is led by natural gas, followed by nuclear energy, with coal and renewables also contributing to the grid.
Power Grid Reliability: The power grid supporting the region is well-engineered and stable, meeting standard business requirements. While not built to the hyper-scale density of Northern Virginia, the infrastructure is reliable for enterprise-grade colocation and disaster recovery operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the area serve the University of Virginia, regional healthcare systems, and a growing number of technology and defense-related firms. Proximity enables low-latency access for research, development, and operational workloads.
Regional Market Reach: Charlottesville is an effective hub for delivering services to central and western Virginia. It also functions as an excellent disaster recovery location for companies with primary infrastructure in Ashburn or other East Coast hubs, offering geographic separation from coastal and primary threat zones.
Tax Advantage For Data Centers: Virginia provides a significant sales and use tax exemption for qualifying data center equipment. This incentive directly reduces the capital expenditure required for servers, storage, and networking hardware, making large-scale deployments more affordable.
Natural Disaster Risk
Charlottesville has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 27.17 out of 100 as of September 2025. The risk is distributed across several factors rather than being concentrated in one catastrophic threat.
The primary environmental risks to data center operations include:
- Hurricane: Residual effects from coastal storms can bring strong winds and heavy rain.
- Riverine Flooding: A consideration for facilities located in low-lying areas near rivers.
- Winter Weather: Ice and snowstorms can pose challenges to infrastructure and personnel access.
- Strong Wind: Associated with severe thunderstorms and decaying tropical systems.
- Lightning: A common risk during warmer months.
