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Data Centers in Richmond

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Richmond – Strategic Alternative to Ashburn

Richmond offers a compelling data center market for organizations prioritizing cost-effectiveness and disaster recovery without straying far from the primary East Coast interconnection hubs. It serves as a strategic secondary location for companies with a primary footprint in Northern Virginia, providing geographic diversity while maintaining low-latency connectivity to the region's massive digital ecosystem. This makes Richmond an ideal choice for resilient infrastructure that directly supports business continuity and application uptime.

Richmond: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, but lacks the carrier density of a top-tier global hub.
Direct Cloud On-Ramps0 – as of September 2025Nearest on-ramp hub is Ashburn, Virginia; private network extensions are readily available.
Power Cost$0.07 - $0.09/kWh, as of September 2025Based on a natural gas-heavy grid, offering a competitive edge over primary markets.
Disaster RiskModerate (NRI Score: 27.17), as of September 2025Lower risk profile than many coastal locations, with manageable weather-related hazards.
Tax IncentivesYesVirginia offers a sales and use tax exemption on qualifying data center equipment.
Sales Tax5.30%, as of September 2025Standard state sales tax rate applies to non-exempt purchases and services.

Network & Connectivity Ecosystem

Richmond provides a reliable and growing connectivity landscape, positioned as a key satellite market to the global hub in Northern Virginia.

Carrier Density & Carrier Neutrality With over 14 network providers present, as of September 2025, Richmond supplies sufficient carrier diversity for most enterprise needs. The market includes multiple carrier-neutral facilities, ensuring competitive options for transit, transport, and private networking.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Richmond's data centers. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via low-latency private links to the dense interconnection ecosystem in Ashburn, Virginia.

Internet Exchange Points (IXPs) Public peering in Richmond is limited. Most network interconnection occurs via private peering within local data centers or through transport to the major exchange points in Ashburn, where hundreds of networks connect.

Bare Metal Bare metal server options are available in the Richmond market. Providers like Hivelocity offer dedicated compute for workloads requiring direct hardware access and consistent performance.

Power Analysis

Richmond's power infrastructure is a significant advantage, offering both competitive pricing and reliability.

Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09 per kilowatt-hour, as of September 2025. This pricing is often more favorable than in the congested Northern Virginia market, directly reducing operational expenses for power-intensive deployments. The grid's energy mix is dominated by natural gas and nuclear generation.

Power Grid Reliability The power grid serving the Richmond area is well-engineered and stable. Major data center facilities are typically supported by redundant utility feeds from separate substations, ensuring high levels of uptime for critical infrastructure.

Market Access, Business & Tax Climate

Richmond's business environment and strategic location make it an attractive data center destination.

Proximity To Key Business Districts Data centers in the region are situated to serve Richmond's core business districts, the state government, and the area's financial and healthcare industries. This proximity facilitates low-latency connections for local and state-level operations.

Regional Market Reach From Richmond, organizations can effectively serve the entire Mid-Atlantic region. It is a strong location for delivering content and applications to a population that spans from Virginia Beach to the Washington, D.C. metropolitan area.

Tax Advantage For Data Centers Virginia provides a significant tax advantage through its data center sales and use tax exemption. This incentive covers computer equipment and software purchased for use in a qualifying data center, substantially lowering the capital investment required for new builds and expansions.

Natural Disaster Risk

Richmond has a moderate natural disaster risk profile, offering a safer alternative to many coastal and seismically active regions.

The area has a FEMA National Risk Index score of 27.17, as of September 2025, which is considered moderate. The primary environmental risks for data center operations are weather-related events. Key hazards include hurricanes, strong winds, winter weather, riverine flooding, and lightning. The inland location significantly mitigates risks associated with direct coastal flooding.

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