Data Centers in Riverside
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Riverside – Cost-Effective Southern California Hub
Riverside offers a compelling alternative to the high-cost, high-density data center markets of Los Angeles. This market is ideal for enterprises that require a Southern California presence for logistics, manufacturing, or regional disaster recovery. Locating in Riverside provides a strategic balance of lower operational costs and reduced risk while maintaining effective connectivity to the greater Los Angeles basin.
Riverside: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though less dense than primary hubs like Los Angeles. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Los Angeles, accessible via private network extensions. |
| Power Cost | $0.18 - $0.22/kWh | Mix: Fossil ~45%, Renewables ~40%, Nuclear ~8%. Costs are above the US average. |
| Disaster Risk | High (FEMA Score: 89.02) | Primary risks include earthquake, wildfire, and drought. |
| Tax Incentives | Yes | California offers various energy efficiency rebates and may provide special permits for data centers. |
| Sales Tax | 7.25% (California state) | Local taxes may apply. As of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to over 3 network carriers, as of September 2025. While not as dense as core LA markets, the available networks offer resilient connectivity options suitable for most enterprise and disaster recovery workloads.
Direct Cloud On-Ramps: Riverside has 0 direct cloud on-ramps, enabling access to 0 cloud regions locally, as of September 2025. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is achieved via dedicated circuits to carrier hotels and cloud exchanges in Los Angeles.
Internet Exchange Points (IXPs): Public peering is limited within Riverside. Most interconnection is handled privately or through the major IXPs located in downtown Los Angeles, which serve as the primary peering points for the entire Southern California region.
Bare Metal: Bare metal server options are available from providers like Hivelocity and phoenixNAP, which can service deployments in the region from nearby facilities.
Power Analysis
Average Cost Of Power: Expect industrial power costs to range from $0.18 - $0.22/kWh, as of September 2025. These rates are higher than the national average and represent a significant factor in total operational cost calculations for compute-heavy deployments.
Power Grid Reliability: The power grid supporting Riverside's commercial zones is well-engineered for business continuity. The energy mix in California includes a substantial and growing portion of renewables, primarily from solar, hydro, and wind power.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Riverside are strategically positioned to serve the Inland Empire, one of the nation's largest logistics and supply chain hubs. This proximity provides low-latency connectivity for e-commerce, warehousing, and manufacturing operations.
Regional Market Reach: From Riverside, organizations can effectively serve the entire Southern California population of over 20 million people, extending from eastern Los Angeles County down to the San Diego border.
Tax Advantage For Data Centers: California offers several tax and rebate programs that can benefit data center operators. These are primarily focused on energy efficiency, such as ENERGY STAR certifications and utility rebates, which help reduce long-term operational expenditures.
Natural Disaster Risk
Riverside has a high natural disaster risk profile, with a FEMA National Risk Index score of 89.02, as of September 2025. The primary risks for data center operations are significant seismic activity (earthquake), wildfire, and threats from prolonged drought and heatwaves. Other notable risks include riverine flooding, landslides, and avalanches in the surrounding mountainous terrain.
