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Data Centers in Los Angeles

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Los Angeles – Gateway to the Pacific Rim & Media Hub

Los Angeles is the premier digital gateway for content delivery, cloud access, and connectivity between North America and Asia. Its dense ecosystem of data centers, subsea cables, and network providers offers businesses a critical edge in reaching millions of end-users with minimal latency, securing a vital hub for media, entertainment, and global commerce.

Los Angeles: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A top-tier global hub for subsea cables, peering, and content delivery networks.
Direct Cloud On-RampsOver 7 – as of September 2025AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, Oracle Cloud.
Power Cost$0.17 - $0.22/kWh (est.)Industrial power costs are above the national average, a key factor in TCO.
Disaster RiskHigh (89.02) – as of September 2025Significant seismic risk is the primary concern, requiring resilient infrastructure.
Tax IncentivesVariesIncludes state-level efficiency rebates and some DC-specific programs.
Sales Tax7.25% (State) – as of Midyear 2025California state sales tax; local taxes can increase the effective rate.

Network & Connectivity Ecosystem

Los Angeles stands as one of the most connected cities in the world, anchored by its role as the primary termination point for trans-pacific subsea cables. This creates an exceptionally rich and competitive connectivity landscape.

Carrier Density & Carrier Neutrality: The market features over 91 data centers and access to approximately 77 network service providers, as of September 2025. Carrier-neutral facilities like those in the downtown core offer unparalleled choice for interconnection.

Direct Cloud On-Ramps: With over 7 dedicated cloud on-ramps, Los Angeles provides low-latency private access to all major hyperscalers, including AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud. This enables secure, high-performance hybrid cloud architectures across 15 cloud regions.

Internet Exchange Points (IXPs): The region is a major hub for internet peering, dominated by exchanges like Equinix IX Los Angeles. These IXPs facilitate efficient traffic exchange between networks, reducing latency and transit costs for content and application providers.

Bare Metal: Bare metal server options are widely available from a variety of providers. Companies like phoenixNAP and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

While Los Angeles offers world-class connectivity, its power costs are a significant consideration for large-scale deployments.

Average Cost Of Power: Industrial electricity rates are estimated to be between $0.17 and $0.22 per kilowatt-hour, as of September 2025. This is notably higher than the U.S. average and directly impacts the total cost of ownership for colocation and dedicated infrastructure. The energy mix is increasingly renewable, with about 40% from sources like solar, hydro, and wind.

Power Grid Reliability: The power grid serving major data center zones, particularly in downtown LA and El Segundo, is well-engineered with significant redundancy. Major colocation facilities are supported by multiple substations from Los Angeles Department of Water and Power (LADWP) or Southern California Edison (SCE), ensuring high levels of uptime.

Market Access, Business & Tax Climate

Los Angeles provides direct access to the world’s fifth-largest economy (California) and serves as a critical nexus for international trade and digital media.

Proximity To Key Business Districts: Data centers are strategically located near downtown Los Angeles, the entertainment industry hubs in Hollywood and Burbank, and the aerospace and tech centers in El Segundo. This proximity supports latency-sensitive applications for media rendering, post-production, and financial services.

Regional Market Reach: The metropolitan area provides low-latency access to a population exceeding 18 million people. As the primary connectivity point to Asia-Pacific, it also serves as the ideal location for companies targeting consumers and business partners across the Pacific.

Tax Advantage For Data Centers: California offers several tax and rebate programs that can benefit data center operators and tenants, though they are not always data-center specific. The primary benefits come from energy efficiency programs, like those offered by Silicon Valley Power or through ENERGY STAR certifications, which provide rebates for efficient equipment and operations.

Natural Disaster Risk

Los Angeles is in a region with high exposure to natural hazards, making infrastructure resilience a top priority for data center selection.

The region has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.02 out of 100, as of September 2025. The most significant risks are driven by seismic activity. Key hazards include:

  • Earthquake
  • Wildfire
  • Drought
  • Heatwave
  • Riverine Flooding
  • Landslide
  • Avalanche
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