Data Centers in Northern Mariana Islands

Northern Mariana Islands – Strategic US Outpost in the Pacific

Executive Summary

The Northern Mariana Islands (CNMI) serves as a niche market for organizations requiring a US legal and political framework in a strategic Western Pacific location. While not a major connectivity hub, its data centers provide essential infrastructure for local government, tourism, and businesses operating in Micronesia. This market is ideal for disaster recovery sites for Guam-based operations or for serving digital services directly to the local population.

Northern Mariana Islands: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality The market is served by a limited number of providers, with connectivity primarily delivered via submarine cables connecting to Guam. Carrier neutrality is available in the 2 data center facilities, as of September 2025, allowing for some choice in transit and local access.

Direct Cloud On-Ramps There are no direct cloud on-ramps in the Northern Mariana Islands. Businesses connect to major cloud providers by routing traffic through Guam or Hawaii. Private network extensions can be established to build secure, dedicated connections to cloud provider points of presence in those hubs.

Internet Exchange Points (IXPs) There are no public Internet Exchange Points (IXPs) within the territory. Peering is typically handled privately between service providers or routed through network fabrics in Guam, the nearest major interconnection point.

Bare Metal Dedicated server, or bare metal, hosting is available through providers that specialize in edge and remote deployments. Global providers like Hivelocity can serve specialized requirements in markets like this.

Power Analysis

Average Cost Of Power Industrial power costs are estimated to be between $0.35 and $0.45 per kWh, as of September 2025. This rate is significantly higher than in continental US markets due to the islands' dependence on imported fossil fuels for nearly 100% of electricity generation. These high energy costs are a primary factor in total cost of operation.

Power Grid Reliability The local power grid is engineered to serve the needs of the islands but is isolated and lacks the extensive redundancy of major metropolitan grids. Data centers in the region rely on their own N+1 or greater UPS systems and diesel generators to guarantee uptime during utility outages or grid fluctuations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are located on Saipan, the largest island and economic center. They provide direct, low-latency connectivity for the Commonwealth's government agencies, hospitality and tourism operators, and local businesses concentrated there.

Regional Market Reach The Northern Mariana Islands offers a strategic position to serve digital services to its own population and to neighboring islands in Micronesia. Its status as a US commonwealth provides a familiar legal and regulatory environment for American companies targeting the region.

Tax Advantage For Data Centers The primary financial advantage is operating within the US legal system while being exempt from federal income tax. While there are no specific data center incentive programs, the local tax structure can be beneficial for certain corporate structures.

Natural Disaster Risk

The Northern Mariana Islands has a Low risk profile based on available public data as of September 2025. However, this designation reflects a lack of specific quantified data rather than an absence of risk.

As an island territory in the Western Pacific, the CNMI is exposed to several significant natural hazards inherent to the region. Key environmental risks include:

• Typhoons (Tropical Cyclones)
• Earthquakes
• Tsunamis
• Volcanic Activity