Data Centers in Sacramento

Sacramento – A Resilient California Alternative

Executive Summary

Sacramento provides a compelling data center market for organizations requiring a strategic California presence without the high costs and seismic risks of the Bay Area. It is an ideal location for disaster recovery, secondary deployments, and serving government or regional enterprise customers. Locating in Sacramento ensures excellent connectivity to major West Coast markets while capitalizing on a more stable operating environment.

Sacramento: At A Glance

Network & Connectivity Ecosystem

Sacramento's network ecosystem is robust, serving as a vital Northern California hub that avoids the congestion of coastal markets.

Carrier Density & Carrier Neutrality: The market features approximately 16 network providers as of September 2025. Carrier-neutral facilities offer diverse connectivity options, ensuring competitive pricing and high uptime.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Sacramento's data centers. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via dedicated network links to nearby hubs in the San Francisco Bay Area.

Internet Exchange Points (IXPs): Public peering is limited within Sacramento itself. Most network peering is conducted privately between carriers or routed through major exchange points in the Bay Area, ensuring low-latency access to the global internet.

Bare Metal: Bare metal server options are available from providers in the region. These services, offered by companies such as phoenixNAP, allow for dedicated, high-performance computing without the overhead of virtualization.

Power Analysis

Sacramento offers a stable and diverse power landscape suitable for mission-critical operations.

Average Cost Of Power: Industrial power costs typically range from $0.16 to $0.21 per kWh as of September 2025. This pricing is often more predictable than in other California markets, aiding long-term operational cost planning. The grid's energy mix is diverse, with significant contributions from natural gas, solar, hydro, and nuclear sources.

Power Grid Reliability: The power grid supporting Sacramento's data center corridors is well-engineered. Facilities benefit from connections to multiple substations, providing the redundancy necessary for high-uptime requirements.

Market Access, Business & Tax Climate

Sacramento presents a business-friendly environment with strategic access to key California markets.

Proximity To Key Business Districts: Data centers in the Sacramento area provide low-latency connectivity to the state capital's government agencies, as well as healthcare, technology, and agricultural sectors throughout the Central Valley.

Regional Market Reach: The market is perfectly positioned to serve Northern California, from the Bay Area to the Oregon border. It also functions as an effective disaster recovery site for businesses in San Francisco and Silicon Valley, located just 90 miles away.

Tax Advantage For Data Centers: California offers several tax and rebate programs that benefit data center operators and tenants. These incentives are primarily tied to energy efficiency upgrades and the use of alternative energy, which can significantly lower total operational costs.

Natural Disaster Risk

Sacramento has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.02 out of 100 as of September 2025.

Although it is an inland location shielded from coastal threats, operators must engineer facilities to withstand specific regional hazards. The primary risks for data center infrastructure include earthquake, drought, heatwave, river flooding, and wildfire. Proper site selection and facility design are critical to mitigate these potential disruptions.