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Data Centers in St. Gallen

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St. Gallen – Alpine Hub for Secure Colocation

St. Gallen is a strategic choice for enterprises prioritizing operational stability and data security in a high-quality, secondary Swiss market. It offers a compelling alternative to Zurich for disaster recovery or latency-sensitive applications serving eastern Switzerland, directly supporting business continuity and uptime.

St. Gallen: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity but lacks the direct international peering of primary hubs.
Direct Cloud On-Ramps0 — as of September 2025Access via private connections to Zurich, the nearest major cloud hub.
Power CostCHF 0.22 - 0.26/kWhHigh reliability from a robust grid dominated by hydro and nuclear power.
Disaster RiskLow (1.8/10) — as of September 2025Minimal exposure to significant natural hazards, a key benefit of the region.
Tax IncentivesNoThe tax environment is stable, but lacks specific data center incentives.
Sales Tax8.1% VAT — as of September 2025Standard Swiss Value Added Tax applies to equipment and services.

Network & Connectivity Ecosystem

St. Gallen offers a stable and reliable connectivity environment, well-suited for regional enterprise and disaster recovery deployments. The market features 3 colocation data centers as of September 2025.

Carrier Density & Carrier Neutrality: A solid selection of regional and national carriers are available within St. Gallen's carrier-neutral data centers. This provides sufficient redundancy and choice for most business requirements, though it is less dense than the primary Zurich market.

Direct Cloud On-Ramps: As of September 2025, there are no direct public cloud on-ramps within St. Gallen. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is achieved via dedicated connections to the primary interconnection hub in Zurich.

Internet Exchange Points (IXPs): Peering is predominantly handled through private interconnects or via the national Swiss Internet Exchange (Swiss-IX) located in Zurich. Direct connection to the IXP provides efficient traffic exchange with other networks.

Bare Metal: Bare metal server options are available from providers specializing in European deployments. Services from providers like Hivelocity can be deployed to serve the region.

Power Analysis

Switzerland's power infrastructure is among the most reliable in the world, a significant advantage for data center operations.

Average Cost Of Power: Expect industrial power rates to be in the range of CHF 0.22 - 0.26/kWh, as of September 2025. This pricing reflects the high grid stability and investment in renewable sources.

Power Grid Reliability: The Swiss power grid is exceptionally reliable, supported by a generation mix dominated by hydroelectric (~56%) and nuclear (~33%) power. St. Gallen's infrastructure benefits from this stability, with data centers typically fed by redundant power sources to ensure high uptime.

Market Access, Business & Tax Climate

St. Gallen is an established economic center for eastern Switzerland with strong international ties.

Proximity To Key Business Districts: Data centers in St. Gallen serve the city's robust economy, which includes technology, banking, and professional services. Proximity allows for low-latency connections essential for local enterprise operations.

Regional Market Reach: Strategically located, St. Gallen provides excellent reach into eastern Switzerland, Liechtenstein, the Austrian Vorarlberg region, and southern Germany.

Tax Advantage For Data Centers: While specific data center incentives are not offered, Switzerland's stable and competitive corporate tax system provides a predictable financial environment. This allows businesses to forecast costs accurately without concern for volatile fiscal policy.

Natural Disaster Risk

St. Gallen has a very low natural disaster risk profile, with an overall INFORM score of 1.8 out of 10, as of September 2025. This geologic and political stability is a core reason enterprises choose Switzerland for critical infrastructure.

The primary environmental risks to consider, though still moderate, are river flooding and earthquakes. The region has minimal exposure to other significant natural hazards like tropical cyclones or drought, making it one of the safer locations in Europe for critical infrastructure.

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