Data Centers in San Francisco

San Francisco – Low Latency Gateway to Global Tech Hubs

Executive Summary

San Francisco is the definitive market for enterprises requiring immediate proximity to the Silicon Valley innovation core and high-capacity links to the Pacific Rim. This location serves as a mission-critical interconnection point where localized compute power directly drives transaction speeds and global data transit efficiency.

San Francisco: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 25. As of September 2025, the market supports ~30 unique carriers, providing a competitive environment for blended IP transit and diverse fiber routing.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. As of September 2025, while direct on-ramps are concentrated in the nearby Santa Clara hub, San Francisco facilities provide high-speed private transport for major providers through local network exchanges.

Internet Exchange Points (IXPs): Primary exchanges like the San Francisco Metropolitan Internet Exchange (SFMIX) and San Francisco Open Exchange (SFOIX) facilitate efficient local peering and reduced transit costs.

Bare Metal: Resilient bare metal services are widely available through specialized providers such as Hivelocity and phoenixNAP, supporting rapid deployment of dedicated compute resources.

Power Analysis

Average Cost Of Power: $0.18–$0.24/kWh, as of September 2025. These rates are a significant factor in operational planning, emphasizing the need for high-efficiency cooling and power distribution systems. The power mix in California includes approximately 40% renewables, helping firms meet sustainability goals while managing costs.

Power Grid Reliability: The urban grid in San Francisco is well-engineered with redundant multi-substation support. Facilities here typically employ sophisticated backup systems to manage any localized grid stress during peak seasonal demand.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located within miles of the Financial District and the South of Market tech corridor. Physical proximity for these sectors is vital for synchronous data replication and minimizing lag for high-frequency applications.

Regional Market Reach: This hub effectively serves the entire Northern California population. It acts as a primary gateway for data traffic moving between North America and East Asia, making it a critical node for international business.

Tax Advantage For Data Centers: California provides financial benefits through data center efficiency rebates and specialized permits for critical infrastructure systems. These programs help offset initial capital expenditures for high-performance deployments.

Natural Disaster Risk

San Francisco carries a High (89.02/100) risk rating as of September 2025. The business environment is specifically adapted to manage these natural hazards through advanced engineering.

• Earthquake: The most significant regional risk, mitigated by seismic base isolation and structural hardening.
• Wildfire: Indirect risk involving air quality and potential grid instability, managed through advanced filtration and onsite generation.
• Heat Wave: Seasonal risk that requires high-efficiency cooling infrastructure to maintain uptime.
• Drought: A long-term regional concern affecting water-cooled systems, leading to a shift toward air-cooled designs.
• Riverine Flood: Minimal localized risk, though relevant in specific low-lying areas near the bay.
• Landslide: Geographic risk specific to hilly terrain, addressed during site selection and foundation engineering.

Other risks such as avalanches are recorded by regional agencies but are not material to data center operations in this metro area.