Data Centers in Norfolk
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Norfolk – Strategic Mid-Atlantic Connectivity Hub
Executive Summary
Norfolk serves as a strategic digital infrastructure location for businesses requiring low-latency connectivity to the Hampton Roads metropolitan area and as a viable disaster recovery site for deployments in Northern Virginia. The market provides a cost-effective operational environment, ensuring reliable application performance and uptime for users across the mid-Atlantic and into the southeastern United States.
Norfolk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional access, though not as dense as primary national hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud hub is Ashburn, VA; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Competitive pricing for the region helps control operational expenditures. |
| Disaster Risk | Moderate (NRI Score: 27.17) | Primary risks are atmospheric, including hurricanes and strong winds. |
| Tax Incentives | Yes | Virginia offers a sales and use tax exemption for data center equipment. |
| Sales Tax | 5.30% | The Virginia state base rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier presence is focused, with 4 providers available in the market as of September 2025. The facilities provide carrier-neutral interconnection, offering a choice for network and transit services.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Norfolk as of September 2025. Secure, private connections to all major cloud providers are established via network extension to the primary North American interconnection hub in Ashburn, Virginia.
Internet Exchange Points (IXPs): Public peering is limited in Norfolk. Most interconnection is handled privately between carriers or routed through the major exchange points in Ashburn.
Bare Metal: Bare metal server options are available for workloads requiring dedicated, high-performance compute. Providers such as Hivelocity and phoenixNAP offer deployment options in the broader region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Norfolk range from approximately $0.07 to $0.09/kWh as of September 2025. These competitive costs provide a clear financial advantage for managing high-density compute and storage environments.
Power Grid Reliability: The regional power grid is well-engineered for commercial and industrial use. The energy mix is primarily sourced from natural gas (over 50% as of 2020), with significant contributions from nuclear power, ensuring stable and reliable electricity for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Norfolk offer low-latency access to one of the nation's largest maritime ports, a significant concentration of U.S. Department of Defense facilities, and related logistics and shipbuilding industries.
Regional Market Reach: The market is positioned to serve the entire Hampton Roads region, including Virginia Beach and Newport News. It also acts as an effective edge location for content delivery into eastern North Carolina.
Tax Advantage For Data Centers: Virginia provides a significant sales and use tax exemption on qualifying data center equipment, including servers and storage hardware. This incentive directly lowers the capital expenditure required for new deployments and hardware refresh cycles.
Natural Disaster Risk
Norfolk has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 27.17 as of September 2025. The primary environmental threats are atmospheric and meteorological. Key risks for consideration include hurricanes, strong winds, riverine flooding, and winter weather.
