Data Centers in Modesto
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Modesto, California, United States – Cost-Effective Central Valley Hub
Modesto offers a strategic colocation alternative to the high-cost San Francisco Bay Area, providing reliable infrastructure for businesses targeting California's Central Valley and beyond. This market is ideal for disaster recovery, secondary deployments, and latency-sensitive applications serving regional agriculture and logistics industries, ensuring uptime without the premium price tag of primary coastal hubs.
Modesto, California, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity options suitable for most regional business needs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in the San Francisco Bay Area; private extension options available. |
| Power Cost | See Notes | Industrial power is a mix of fossil fuels (~45%) and renewables (~40%). |
| Disaster Risk | High (89.02) – as of September 2025 | Primary risks include earthquake, drought, and wildfire, requiring robust mitigation plans. |
| Tax Incentives | Yes | Includes general energy efficiency rebates and data center-specific programs in select areas. |
| Sales Tax | 7.25% (State) – as of September 2025 | Local district taxes can increase the combined rate. |
Network & Connectivity Ecosystem
Modesto provides a foundational connectivity environment well-suited for regional enterprise and content delivery. While not a primary interconnection hub, it offers access to major networks, serving as a viable node for deployments focused on California's Central Valley.
Carrier Density & Carrier Neutrality: The market contains 2 colocation providers, with access to a focused group of regional and national carriers as of September 2025. Carrier-neutral facilities offer choices for creating redundant network paths.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps within Modesto as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the San Francisco Bay Area, typically through private network interconnects or wavelength services from local carriers.
Internet Exchange Points (IXPs): Public peering is not a feature of the Modesto market. Most peering is conducted privately between carriers or routed through major exchange points in the San Francisco Bay Area and Los Angeles.
Bare Metal: Bare metal server options are available, primarily through providers that can deploy custom infrastructure within the area's colocation facilities. Options from providers like Hivelocity or phoenixNAP can service the region, offering dedicated compute for demanding workloads.
Power Analysis
Power infrastructure in Modesto is stable, benefiting from California's diverse energy generation portfolio. The grid is engineered to support the region's significant agricultural and industrial base.
Average Cost Of Power: The state's power mix consists of approximately 45% fossil fuels (mostly natural gas), 40% renewables, and 8% nuclear energy. Industrial electricity costs are generally higher than the U.S. average, which can impact total operational expenses for power-intensive deployments.
Power Grid Reliability: The regional grid provides well-engineered power to support business operations. Data centers in the area are equipped with standard N+1 or 2N UPS systems and backup generators to protect against service interruptions.
Market Access, Business & Tax Climate
Modesto's location in the Central Valley provides unique access to a large, often underserved economic region of California.
Proximity To Key Business Districts: Data centers in Modesto are strategically positioned to serve the extensive agriculture, food processing, and logistics industries of the Central Valley. This proximity allows for low-latency support for supply chain management and agricultural technology applications.
Regional Market Reach: From Modesto, digital services can effectively reach a population of millions across the Central Valley, from Sacramento to Bakersfield. It serves as an effective distribution point for content and applications targeting this distinct geographic market.
Tax Advantage For Data Centers: California offers several tax incentives that can benefit data center operators and tenants. These programs primarily focus on energy efficiency, including rebates for ENERGY STAR certified equipment and EV charging stations, which can help lower overall operational costs.
Natural Disaster Risk
Modesto has a high natural disaster risk profile, with a FEMA National Risk Index score of 89.02 as of September 2025. This requires that data center facilities adhere to stringent construction standards and maintain comprehensive disaster recovery plans.
Key risks for the region include:
- Earthquake
- Drought
- Wildfire
- Heatwave
- Riverine Flooding
- Landslide
- Avalanche
