Data Centers in Charleston
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Charleston – Low-Risk Hub with Favorable Power
Executive Summary
Charleston, West Virginia is a compelling market for organizations requiring disaster recovery sites or secondary infrastructure outside of major East Coast hubs. Its low natural disaster risk and competitive power costs provide a stable, cost-effective environment for workloads that prioritize resilience and operational stability over ultra-low latency to primary markets. This makes it a strong choice for business continuity and archival applications.
Charleston: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Solid regional connectivity, but lacks major internet exchange points or diverse long-haul fiber. |
Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major on-ramp hubs are in Northern Virginia; private network extensions are available. |
Power Cost | $0.06 – $0.08 / kWh | Coal-dominant grid provides stable and competitive industrial power pricing. |
Disaster Risk | Moderate (Score: 30.93) | Very low overall national risk profile; primary risks are weather-related events. |
Tax Incentives | Yes | Offers data center-specific sales, use, and property tax exemptions for qualifying projects. |
Sales Tax | 6.00% – as of September 2025 | Note that specific DC tax exemptions may apply to equipment purchases. |
Network & Connectivity Ecosystem
Charleston is a tertiary market focused on regional connectivity. While it lacks the density of a primary hub, it provides sufficient infrastructure for secondary and disaster recovery deployments.
Carrier Density & Carrier Neutrality Carrier presence is limited, with around 1–5 providers available in the market as of September 2025. The two facilities in the area offer access to these regional and national networks.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Charleston as of September 2025. Access to hyperscale cloud providers requires building private network connections to major hubs, with Northern Virginia being the primary and closest interconnection point.
Internet Exchange Points (IXPs) The market does not host any public internet exchange points. Peering is typically handled privately between carriers or routed through upstream providers in larger cities like Ashburn or Pittsburgh.
Bare Metal Bare metal server options are available through providers that can deploy custom infrastructure into regional colocation facilities. Companies like Hivelocity can facilitate deployments in markets like Charleston, providing dedicated hardware without the capital expense.
Power Analysis
Average Cost Of Power Industrial electricity rates in Charleston are estimated to be between $0.06 and $0.08 per kWh as of September 2025. This competitive pricing is driven by a grid dominated by coal generation and directly lowers the total cost of ownership for power-intensive operations.
Power Grid Reliability West Virginia's power grid is built to support significant industrial and mining operations, offering a reliable power supply. The energy mix, with 86% from coal, ensures consistent baseload power, though it lacks the renewable energy options found in other markets.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Charleston serve the state capital's government, healthcare, and energy sectors. The location is strategic for organizations with operations centered in West Virginia or the broader Appalachian region.
Regional Market Reach Charleston provides effective service delivery for end-users throughout West Virginia and into neighboring states like Ohio, Kentucky, and Virginia. It functions as a useful edge location for latency-sensitive applications within this specific geography.
Tax Advantage For Data Centers West Virginia offers powerful data center-specific incentives, including long-term exemptions from sales, use, and property taxes on equipment. These programs are designed to significantly reduce the initial capital expenditure and ongoing operational taxes for qualifying data center projects.
Natural Disaster Risk
Charleston has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 30.93 as of September 2025. The area is well-insulated from major catastrophic events like hurricanes and earthquakes that affect other regions.
The primary environmental risks for infrastructure in this area include:
- Riverine Flooding
- Winter Weather
- Strong Wind
- Landslides
- Hail