Data Centers in Riverside
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Riverside – Southern California's Value Hub
Executive Summary
Riverside offers a cost-effective alternative to the saturated Los Angeles data center market, making it ideal for disaster recovery and secondary deployments. This market provides lower operational costs while maintaining solid connectivity to major West Coast hubs. Businesses here can protect critical infrastructure and control budgets without sacrificing regional performance.
Riverside: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good connectivity, primarily serving as a secondary market to Los Angeles. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest major hub is Los Angeles. Private network extensions are available. |
| Power Cost | $0.17 - $0.21/kWh (est.) | California's grid features a high mix of renewables and natural gas. |
| Disaster Risk | High (NRI Score: 89.02) — as of September 2025 | Significant risks include earthquake, wildfire, drought, and heat wave events. |
| Tax Incentives | Varies | Primarily general energy efficiency rebates; data center-specific programs are limited statewide. |
| Sales Tax | 7.25% (California state rate) — as of July 2025 | Additional local district taxes may apply to the final rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality While a focused market, Riverside facilities offer access to over 3 carriers as of September 2025. The primary data centers provide carrier-neutral interconnection, enabling resilient network designs by connecting to regional and national backbones.
Direct Cloud On-Ramps Riverside has 0 direct cloud on-ramps as of September 2025. Secure, low-latency connections to AWS, Google Cloud (GCP), Microsoft Azure, and other major platforms are achieved via dedicated links to the primary connectivity hub in Los Angeles.
Internet Exchange Points (IXPs) Most network peering occurs privately or through exchanges in the nearby Los Angeles market, which is home to several major global IXPs. This model provides efficient traffic exchange for reaching West Coast end-users and international destinations.
Bare Metal Bare metal solutions are readily available, often provisioned from providers in the greater Los Angeles area to serve the region. Options from providers like phoenixNAP or Hivelocity can serve workloads that require dedicated, non-virtualized hardware.
Power Analysis
Average Cost Of Power Industrial power in the Riverside area is estimated between $0.17 - $0.21/kWh as of September 2025. These rates are competitive for Southern California and can offer meaningful savings compared to prime metro locations, directly impacting total cost of ownership.
Power Grid Reliability The power grid supporting Riverside is well-engineered, drawing from California's diverse energy mix of natural gas, solar, hydro, and nuclear sources. Data centers in the area are supported by redundant infrastructure and robust on-site backup generation to ensure high uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Riverside are strategically located to support the Inland Empire's booming logistics, manufacturing, and healthcare industries. This proximity allows for low-latency support for these critical local sectors, which are foundational to the Southern California economy.
Regional Market Reach Riverside provides excellent reach to the entire Southern California population of over 20 million people. It serves as an effective and geographically separate disaster recovery site for businesses with primary infrastructure in Los Angeles or Orange County.
Tax Advantage For Data Centers California offers general tax incentives focused on energy efficiency, such as rebates for ENERGY STAR certified equipment, which can lower operational costs. While some data center-specific programs exist, they are typically focused on other regions within the state.
Natural Disaster Risk
The Riverside area has a High natural disaster risk profile, with a National Risk Index score of 89.02 as of September 2025. Key environmental threats for data center operators to mitigate include earthquake, wildfire, drought, and severe heat waves. Other notable risks for the region are landslides, riverine flooding, and avalanches in nearby mountain ranges.
