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Data Centers in Los Angeles

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Los Angeles – Gateway to the Pacific Rim & Media Capital

Executive Summary

Los Angeles is a top-tier global data center market, essential for any organization serving the media, entertainment, and technology sectors. Its unmatched connectivity to Asia-Pacific markets makes it a critical hub for content delivery and international business, directly impacting application speed and global revenue. With a dense ecosystem of carriers and cloud providers, Los Angeles delivers the low-latency performance required for real-time media streaming, gaming, and cloud applications.

Los Angeles: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A primary US traffic hub, especially for trans-pacific routes to Asia.
Direct Cloud On-RampsOver 7 – as of September 2025Includes AWS, Azure, Google, IBM, and Oracle for excellent hybrid-cloud access.
Power Cost$0.17 - $0.21/kWh (est.)Higher than the US average, reflecting a premium for the market's location.
Disaster RiskHigh (89.02 percentile)Primary risks include earthquake, wildfire, drought, and heat waves.
Tax IncentivesYesGeneral energy efficiency rebates and some data center-specific programs are available.
Sales Tax7.25% (State) – as of Midyear 2025Local and district taxes can increase the final rate for equipment purchases.

Network & Connectivity Ecosystem

Los Angeles is one of the most connected cities in the world. The infrastructure is mature, dense, and built for high-performance workloads that cannot tolerate delay.

Carrier Density & Carrier Neutrality With over 75 unique network providers as of September 2025, the market offers extensive choice. Competition among carriers in carrier-neutral facilities like those in the downtown telecom district ensures competitive pricing and diverse routing options.

Direct Cloud On-Ramps The Los Angeles market features over 7 dedicated cloud on-ramps providing direct, private access to 15 different cloud availability regions as of September 2025. Major public clouds with a dedicated presence include:

  • AWS
  • Google Cloud (GCP)
  • Microsoft Azure
  • IBM Cloud
  • Oracle Cloud

Internet Exchange Points (IXPs) The region is home to several critical IXPs, including Equinix IX Los Angeles and Any2West. These exchanges are vital for reducing latency by allowing networks to exchange traffic directly, a key advantage for media streaming and content companies.

Bare Metal Bare metal server capacity is readily available from multiple providers. Companies like phoenixNAP and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Average Cost Of Power Expect industrial power costs in the range of $0.17 - $0.21/kWh as of September 2025. While higher than in many other US markets, this cost is a known trade-off for access to the location's superior connectivity and strategic importance.

Power Grid Reliability The power grid serving the primary data center corridors, particularly in downtown Los Angeles and El Segundo, is well-engineered for commercial needs. Major data centers are typically supported by redundant utility feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Los Angeles provide low-latency connectivity to the city's key economic zones. This includes the financial district downtown, the massive media and entertainment industry in Hollywood and Burbank, and the growing tech scene in Silicon Beach.

Regional Market Reach The market effectively serves the entire Southern California metropolitan area, a population of nearly 20 million people. It is also the primary digital gateway for businesses targeting consumers in Mexico and across the Asia-Pacific region.

Tax Advantage For Data Centers California offers several tax and rebate programs focused on energy efficiency that can benefit data center operators. These utility- and state-level incentives help offset capital and operational costs associated with deploying energy-saving technologies.

Natural Disaster Risk

Los Angeles has a High natural disaster risk profile, with a Federal Emergency Management Agency (FEMA) National Risk Index score of 89.02 out of 100 as of September 2025. While facilities are engineered to mitigate these factors, the primary environmental risks for the region are:

  • Earthquake
  • Wildfire
  • Drought
  • Heat Wave
  • Landslide
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