Data Centers in Richmond

Richmond – Strategic Connectivity, Lower Cost

Executive Summary

Richmond serves as a key secondary data center market for businesses that need a cost-effective, low-latency presence in the Mid-Atlantic without the premium pricing of Northern Virginia. It is an ideal location for disaster recovery, edge computing, and primary workloads for regional enterprises. This market provides a strategic balance of performance and operating expense, helping to protect infrastructure budgets while maintaining reliable access to East Coast markets.

Richmond: At A Glance

Network & Connectivity Ecosystem

Richmond's connectivity provides a reliable foundation for digital infrastructure, offering a strategic alternative to the hyper-saturated Northern Virginia market.

Carrier Density & Carrier Neutrality: With over 14 network providers present as of September 2025, Richmond offers sufficient carrier diversity for most enterprise and disaster recovery needs. Carrier-neutral facilities provide access to a competitive blend of local, regional, and national networks.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Richmond's data centers, as of September 2025. The primary access point is the major cloud hub in Ashburn, VA. Businesses in Richmond connect to cloud providers via private network interconnects, dedicated fiber, and high-capacity wave services.

Internet Exchange Points (IXPs): The Richmond Virginia Internet Exchange (RVA-IX) is the main peering point in the market. It allows local networks, content providers, and enterprises to exchange traffic directly, reducing latency and improving performance for regional end-users.

Bare Metal: Bare metal server options are available through colocation providers in the area. Providers like Hivelocity and phoenixNAP offer dedicated server solutions that give businesses full control over their hardware environment.

Power Analysis

Average Cost Of Power: Industrial power costs in the Richmond area typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing can lead to significant operational savings compared to more expensive power markets on the East Coast.

Power Grid Reliability: The electrical grid serving the Richmond market is well-engineered, with a generation mix led by natural gas and nuclear power. Data centers are typically located in industrial zones with access to redundant power feeds and substation diversity, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Richmond data centers are strategically positioned to serve the city's financial district, state government agencies, and growing healthcare and biotechnology sectors. This proximity provides low-latency connectivity essential for local business operations and application performance.

Regional Market Reach: As a Mid-Atlantic hub, Richmond offers effective reach to a broad geography that includes the Hampton Roads metropolitan area and extends north towards Washington, D.C. It is a strong location for content delivery and application hosting for users throughout Virginia and neighboring states.

Tax Advantage For Data Centers: Virginia offers a compelling sales and use tax exemption on qualifying servers, routers, and other equipment purchased for use in a data center. This state-level incentive directly reduces the capital expense of deploying or upgrading infrastructure, making the market financially attractive.

Natural Disaster Risk

Richmond has a moderate risk profile, with a National Risk Index score of 27.17 as of September 2025. The facility and operational risks are well-understood and can be mitigated with standard engineering and business continuity practices.

Primary risks are atmospheric and seasonal in nature, including hurricanes, strong winds, riverine flooding, winter weather, hail, and lightning. The region has a very low risk of significant earthquake activity.