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Data Centers in Los Angeles

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Los Angeles – Global Gateway for Media & Cloud

Los Angeles is one of the world's premier data center markets, serving as a critical hub for media, entertainment, and technology industries. Its strategic location on the US West Coast provides the lowest-latency network routes to Asia-Pacific, making it essential for global content delivery, gaming, and cloud services that demand high performance and massive scale.

Los Angeles: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A top-tier US West Coast hub with extensive subsea cable and fiber infrastructure.
Direct Cloud On-RampsOver 7 — as of September 2025Direct access to AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, Oracle Cloud.
Power Cost$0.16 - $0.21/kWh — as of September 2025Power costs are higher than the US average, reflecting a complex grid mix.
Disaster RiskHigh (89.02 percentile) — as of September 2025Main risks include earthquakes, wildfires, and drought. Mitigation is a key focus.
Tax IncentivesYesIncludes both general energy efficiency rebates and data-center-specific programs in California.
Sales Tax7.25% (California state) — as of September 2025Local taxes can increase the combined rate depending on the specific city/county.

Network & Connectivity Ecosystem

Los Angeles is one of the most connected cities on the planet, offering superior access to domestic and international networks.

Carrier Density & Carrier Neutrality The market features over 75 unique network providers as of September 2025. A healthy ecosystem of carrier-neutral facilities ensures competitive pricing and resilient multi-carrier strategies.

Direct Cloud On-Ramps With over 7 cloud on-ramps serving 15 distinct cloud regions, Los Angeles offers exceptional private access to major platforms. Providers 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, with the Equinix IX - Los Angeles being a primary hub for peering. These exchanges facilitate efficient traffic exchange between content providers, networks, and cloud platforms, particularly for Asia-Pacific routes.

Bare Metal Bare metal server options are widely available from numerous providers. Companies like Hivelocity and phoenixNAP offer dedicated server hosting, giving businesses direct control over hardware resources.

Power Analysis

Average Cost Of Power Industrial power rates in Los Angeles typically range from $0.16 to $0.21/kWh as of September 2025. These costs are higher than the national average and represent a significant factor in total cost of ownership for high-density deployments.

Power Grid Reliability The power grid serving major data center corridors is well-engineered, with many facilities offering multi-substation support. The state's energy mix includes significant renewable sources (~40%) alongside natural gas (~45%) and nuclear (~8%).

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Los Angeles provide low-latency connectivity to the media and production studios in Hollywood, financial services in Downtown LA, and the tech ecosystem in Silicon Beach. This proximity is critical for real-time content creation, processing, and distribution.

Regional Market Reach The Los Angeles market serves the massive Southern California population of over 20 million people. It is also the primary digital gateway for businesses serving adjacent markets like Phoenix, Las Vegas, and San Diego.

Tax Advantage For Data Centers California provides several tax incentive programs that can benefit data center operators and tenants. These include state-level sales tax exemptions on specific equipment purchases and various energy efficiency rebate programs. These advantages help reduce the initial capital investment required for new builds and technology refreshes.

Natural Disaster Risk

Los Angeles has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.02 as of September 2025.

Operators and customers must prioritize infrastructure resiliency and disaster recovery planning. The primary risks for the region include:

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