Data Centers in Sacramento

Sacramento – Resilient California Colocation Hub

Sacramento provides a compelling data center market for organizations that require a Northern California presence but want to mitigate the high costs and seismic risks of the San Francisco Bay Area. The market is a strategic location for disaster recovery, government services, and regional content delivery, balancing connectivity with superior operational stability.

Sacramento: At A Glance

Network & Connectivity Ecosystem

Sacramento offers a solid and reliable connectivity ecosystem, serving as a key Northern California aggregation point outside the immediate Bay Area.

Carrier Density & Carrier Neutrality: The market features over 15 carriers, as of September 2025, providing diverse network options across 20 colocation facilities. This environment supports competitive pricing and redundant network architectures for high uptime requirements.

Direct Cloud On-Ramps: As of September 2025, there are no direct public cloud on-ramps within Sacramento's core data centers. The primary access points are located in the San Francisco Bay Area, particularly Silicon Valley. High-speed, private connectivity options like point-to-point circuits or wavelength services are commonly used to bridge this gap effectively.

Internet Exchange Points (IXPs): Public peering is limited within Sacramento itself. Most organizations establish private peering relationships or connect to the primary IXPs in the Bay Area to exchange traffic efficiently.

Bare Metal: Bare metal server options are available from multiple providers in the Sacramento market. Deployments can be sourced from providers such as Hivelocity and phoenixNAP, enabling dedicated performance for demanding workloads.

Power Analysis

Power in Sacramento is reliable, though costs reflect California's broader energy market pricing.

Average Cost Of Power: Industrial electricity rates typically range from $0.18 to $0.22/kWh, as of September 2025. This cost, while higher than the U.S. average, is often offset by lower real estate and operational expenses compared to the Bay Area. The state's power mix includes approximately 45% fossil fuels, 40% renewables, and 8% nuclear generation.

Power Grid Reliability: The power grid, primarily managed by the Sacramento Municipal Utility District (SMUD), is well-engineered and stable. Modern data centers in the region are built with significant redundancy, including connections to multiple substations to ensure consistent uptime.

Market Access, Business & Tax Climate

Sacramento’s location and business environment make it a strategic choice for specific industries and use cases.

Proximity To Key Business Districts: Data centers in Sacramento provide low-latency connectivity to the California state government, making the market ideal for public sector contractors and related services. The region also supports the large agriculture and logistics industries of the Central Valley.

Regional Market Reach: The market is perfectly positioned to serve end-users across Northern California, from the Bay Area to the Central Valley and into Nevada. It is also a popular and logical disaster recovery location for businesses with primary operations in San Francisco or Los Angeles.

Tax Advantage For Data Centers: California does not offer statewide data center-specific sales tax exemptions, which are common in other states. However, some local utility districts provide rebates and incentives tied to energy efficiency upgrades and sustainable power usage.

Natural Disaster Risk

Sacramento has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.02, as of September 2025. The primary threats requiring mitigation are earthquake activity, riverine flooding, wildfire, drought, and extreme heatwaves. While safer from direct coastal threats, thorough due diligence on seismic retrofitting, flood plain location, and fire mitigation is essential for any data center deployment in the region.