Data Centers in Norfolk
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Norfolk – Strategic Mid-Atlantic Connectivity Hub
Norfolk offers a compelling data center market for organizations requiring resilient infrastructure outside the primary Northern Virginia corridor. The region provides a strategic location for disaster recovery and edge computing, delivering reliable connectivity to serve mid-Atlantic population centers and key military and port operations.
Norfolk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with diverse fiber routes. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hubs are in Northern Virginia; private connectivity is available. |
| Power Cost | $0.08–$0.10/kWh (est.) | Based on regional averages; Virginia's mixed-fuel grid helps stabilize costs. |
| Disaster Risk | Moderate (27.17) — as of September 2025 | Main risks are storm-related, but overall score is favorable. |
| Tax Incentives | Yes | Virginia offers a sales and use tax exemption for data center equipment. |
| Sales Tax | 5.30% (state base) — as of September 2025 | The state-level base rate applies to general goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: With at least 4 providers operating 4 data centers, the Norfolk market provides solid carrier diversity, as of September 2025. Carrier-neutral facilities are available, offering a choice of regional and national networks.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Norfolk's immediate metro area, as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure via the major interconnection hubs in Northern Virginia, accessible through dedicated fiber and wavelength services.
Internet Exchange Points (IXPs): Public peering is limited within Norfolk. Most interconnection occurs via private peering within colocation facilities or by connecting to the massive exchange points in Ashburn, VA, the world's largest data center hub.
Bare Metal: Bare metal server options are available in the broader Virginia market. Providers like Hivelocity and ColoCrossing can serve regional needs, often from facilities in Northern Virginia or other East Coast locations.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between $0.08 and $0.10 per kWh, as of September 2025. These competitive power costs, when compared to other major US markets, allow for more predictable operational spending at scale.
Power Grid Reliability: Virginia's power grid is reliable, supported by a diverse generation mix led by natural gas and nuclear energy. Data centers in the region typically benefit from well-engineered power infrastructure with access to redundant substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Norfolk's data centers serve the Hampton Roads metropolitan area, including the Port of Virginia, one of the busiest ports on the East Coast, and the world's largest naval station. This proximity is critical for logistics, maritime, and defense industries.
Regional Market Reach: The market provides low-latency connectivity to a significant population across Virginia and North Carolina. It is an effective location for content delivery, disaster recovery, and edge services for the greater mid-Atlantic region.
Tax Advantage For Data Centers: Virginia provides a significant sales and use tax exemption on qualifying data center equipment. This incentive directly lowers the capital expenditure required to build, expand, or refresh technology infrastructure, making the state financially attractive for large-scale deployments.
Natural Disaster Risk
Norfolk 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 primary environmental threats are tied to its coastal location and weather patterns. Key risks for consideration include hurricanes, riverine flooding, strong winds, and winter weather. Other notable risks include lightning, hail, and potential earthquakes, though these are less frequent.
