Northern Virginia is the largest data center market in the
United States. This extremely mature and well-connected
area traces its roots to the U.S. Government’s experiments
in wide area fiber optic networking in the late 1960s. The
low-latency connections to the national fiber network
backbone along with a relatively business-friendly
environment make Northern Virginia the top market for
data centers serving the area’s biggest public and private
enterprises.
Northern Virginia is the largest data center market in the
United States for the following reasons:
1. Competitive Colocation/Cloud Environment – The
Northern Virginia market has the largest presence of
colocation and cloud providers in the United States,
creating a very competitive environment
2. Strategic Location – The Northern Virginia market
provides a strategic, cost-effective market for
companies needing their data center in the
northeastern United States
3. Relatively Free of Natural Disasters – Other than
occasional high winds and rain from hurricane
remnants, the Northern Virginia market is typically
very safe
4. Reasonable Power Cost – Northern Virginia’s power
costs are competitive among major colocation
markets and is reasonable considering the total cost
of occupancy for long-term requirements
5. Business Climate – Despite some economic
challenges in Virginia over the past few years, the
area’s businesses continue to grow, creating data
center requirements for the market
The Northern Virginia data centre market is known for its large-scale development. The data centre users within this market typically require robust infrastructure, runway for adjacent expansion, and favourable economic terms to match their commitments from a size and growth standpoint. Data centre providers generally seek the support of Loudoun County and other local Virginia governments, where they receive incentives in the form of permitting aid or tax abatements. The region’s digital ecosystem and fibre reach are two primary factors behind its explosive growth. Northern Virginia is one of several anchor points of the worldwide internet. An estimated 70% of the world’s internet traffic runs through Northern Virginia. No other region has more data centre facilities, data centre providers, or access to major cloud providers.