Data Centers in Norfolk
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Norfolk – Mid-Atlantic Subsea & Edge Hub
Norfolk serves as a strategic edge market and a key landing point for multiple transatlantic subsea cables, offering unique low-latency routes to Europe and South America. This market is ideal for organizations in logistics, defense, and research that require resilient infrastructure outside the primary Northern Virginia corridor while retaining access to global networks. Deploying in Norfolk reduces latency for Mid-Atlantic users and provides a valuable disaster recovery location relative to Ashburn.
Norfolk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access but fewer terrestrial long-haul carriers than primary markets. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | The nearest major cloud hub is Ashburn, VA; access via private network extensions. |
| Power Cost | $0.07 - $0.09/kWh | Industrial power costs are competitive, supported by a favorable generation mix. |
| Disaster Risk | Moderate (NRI Score: 27.17) | Risk profile is manageable, with hurricanes and flooding as the primary concerns. |
| Tax Incentives | Yes | Virginia offers a sales and use tax exemption on data center equipment. |
| Sales Tax | 5.30% — as of September 2025 | This is the state's base sales and use tax rate. |
Network & Connectivity Ecosystem
Norfolk’s connectivity profile is defined by its growing importance as a subsea cable landing hub, creating distinct network advantages for specific workloads.
Carrier Density & Carrier Neutrality The market includes at least 4 providers in 4 carrier-neutral data centers as of September 2025. While not as dense as top-tier markets, Norfolk provides sufficient carrier diversity for enterprise and edge deployments, with access to regional and national backbones.
Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Norfolk as of September 2025. Businesses connect to cloud providers primarily by extending their networks to the dense ecosystem in Ashburn, Virginia, via private fiber or wavelength services.
Internet Exchange Points (IXPs) Public peering is limited within Norfolk. Most network peering is conducted privately between carriers or accomplished by connecting to the massive exchange points in Ashburn, such as DE-CIX and Equinix IX.
Bare Metal Bare metal server capacity is available in the Norfolk market. Providers like phoenixNAP offer dedicated server solutions, enabling businesses to deploy high-performance computing without capital investment in hardware.
Power Analysis
Virginia's power infrastructure is well-established and designed to support critical facilities, including the massive data center alley in the northern part of the state.
Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. These competitive power costs help lower the total cost of operation for colocation and large-scale deployments. The state's power generation mix is led by natural gas (over 50% in 2020), with significant contributions from nuclear energy.
Power Grid Reliability The regional power grid is reliable and benefits from investments made to support military and industrial consumers. Data centers in the area are served by redundant power feeds from diverse substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Norfolk offers a favorable business environment, combining strategic location with compelling state-level financial incentives.
Proximity To Key Business Districts Data centers in Norfolk are positioned to serve the Port of Virginia, one of the busiest ports on the East Coast, and Naval Station Norfolk, the world's largest naval base. This makes the market ideal for logistics, maritime, and defense contractors.
Regional Market Reach From Norfolk, digital services can be delivered with low latency to the Hampton Roads metropolitan area, Richmond, and into North Carolina. Its subsea cable connections also make it an effective point of presence for reaching European and Latin American markets.
Tax Advantage For Data Centers Virginia provides a significant sales and use tax exemption for equipment purchased for data centers. This incentive directly lowers the capital expense required for building new facilities or upgrading existing hardware, making the state financially attractive for infrastructure investment.
Natural Disaster Risk
Norfolk has a moderate natural disaster risk profile, with an overall FEMA National Risk Index score of 27.17 as of September 2025. The primary environmental threats are tied to its coastal location.
Key risks for consideration include hurricanes, riverine and coastal flooding, strong winds, and lightning. While earthquake and winter weather risks are present, they are rated as significantly lower threats to infrastructure. Site selection and facility engineering are critical to mitigate the main weather-related hazards.
