Data Centers in Sacramento

Sacramento – Strategic Failover and Northern California Hub

Executive Summary

Sacramento is the primary choice for enterprises requiring a geologically stable alternative to Silicon Valley without sacrificing low-latency access to the San Francisco Bay Area. This market is purpose-built for disaster recovery and edge computing, providing a resilient environment to protect revenue and ensure continuous uptime. It offers a strategic balance of lower operational costs and high-performance infrastructure for the most demanding digital services.

Sacramento: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 16. The market supports a healthy ecosystem of ~15–20 carriers as of December 2025. Most facilities operate with a carrier-neutral policy, allowing for diverse fiber paths and competitive pricing for transit and transport services.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of December 2025, there are no native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure located directly in the metro. Connectivity is managed through private network interfaces or dedicated waves backhauled to primary hubs in San Francisco.

Internet Exchange Points (IXPs): Public peering options are focused on regional connections, while high-volume traffic is exchanged through private peering or by reaching the San Francisco Metropolitan Internet Exchange (SFMIX) via low-latency transport.

Bare Metal: High-performance compute options are available through providers such as phoenixNAP and Hivelocity. These services allow for rapid deployment of heavy workloads without the overhead of hardware management.

Power Analysis

Average Cost Of Power: Industrial electricity in this region typically ranges from $0.14 to $0.18/kWh, as of December 2025. While these costs are higher than the national average, they represent significant operational savings for companies moving workloads away from the higher-priced coastal California markets.

Power Grid Reliability: The grid in major data center corridors is well-engineered and supported by multi-substation redundancy to ensure consistent delivery. Reliability is supported by a diverse generation mix that includes renewables and nuclear power, providing a stable foundation for high-uptime operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers here are strategically located near the state capital government offices and a growing technology sector. This proximity provides high-speed access to public sector infrastructure and an ecosystem of tech firms fleeing the extreme costs of the San Francisco Bay Area.

Regional Market Reach: Sacramento acts as a central node for Northern California and the Central Valley, serving a massive population base. It is a purpose-built location for edge computing and content delivery for millions of users across the northern half of the state.

Tax Advantage For Data Centers: The primary financial benefit stems from local utility efficiency rebates and specialized certifications that lower long-term operational overhead. These programs incentivize the use of energy-saving equipment, which directly reduces the total cost of ownership for colocation customers.

Natural Disaster Risk

Sacramento is characterized by a risk score of High (89.02/100), as of December 2025. While the region has a safer geological profile than the coast, it faces specific environmental challenges that require resilient facility engineering.

The primary natural hazards for this market include:

• Wildfire: A persistent regional concern that demands high-grade air filtration and emergency power preparedness.
• River Flooding: Managed through extensive levee systems, though it remains a primary risk factor for low-lying areas.
• Heat Wave: Extreme summer temperatures require sturdy cooling infrastructure to maintain constant uptime.
• Earthquake: While safer than coastal zones, the region is subject to indirect seismic activity from nearby fault lines.
• Drought & Landslide: Secondary risks that impact regional resource management and local terrain stability.