Data Centers in Hawaii

Hawaii, USA – Strategic Mid-Pacific Connectivity Hub

Executive Summary

Hawaii offers a unique strategic value for businesses requiring a mid-Pacific presence to bridge North American and Asia-Pacific markets. The state serves as a vital landing point for submarine cables, making it essential for disaster recovery, content delivery, and latency reduction for trans-Pacific traffic. This market is ideal for organizations that need to improve application performance and resilience for users across the Pacific Rim.

Hawaii, USA: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Hawaii is served by over 5 network providers as of September 2025. Its primary value comes from being a major intersection for trans-Pacific submarine cables, with five colocation facilities offering access to this global connectivity.

Direct Cloud On-Ramps The market features over 1 direct cloud on-ramp, enabling dedicated access to 1 cloud region as of September 2025.

• AWS

Access to other major cloud providers like Google Cloud and Microsoft Azure is available through network provider extensions from mainland hubs, primarily Los Angeles and the San Francisco Bay Area.

Internet Exchange Points (IXPs) Public peering is limited in Hawaii; most traffic exchange occurs via private network interconnects within carrier-neutral data centers or is routed through major IXPs on the US West Coast.

Bare Metal Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer deployment capabilities in the Hawaiian market.

Power Analysis

Average Cost Of Power Industrial power costs in Hawaii are estimated between $0.28 and $0.35/kWh as of September 2025. This rate is significantly higher than the US mainland average, making power efficiency a critical factor in total cost of ownership calculations. The energy mix is dominated by fossil fuels, with a growing share from renewables.

Power Grid Reliability The local power grid is isolated and engineered to withstand tropical storm conditions. Major data centers are supported by redundant power feeds from separate substations and feature robust on-site generation and UPS systems to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Hawaii are positioned to serve key government, military, research, and tourism sectors concentrated around Honolulu. This proximity supports low-latency requirements for local operations and serves as a critical communications link.

Regional Market Reach Hawaii's strategic location in the Pacific Ocean makes it an indispensable hub for connecting North America with Asia and Australia. It provides an ideal location for content caching, disaster recovery sites, and network nodes to reduce latency for trans-Pacific data flows.

Tax Advantage For Data Centers Hawaii offers compelling financial incentives, including a proposed data center-specific tax credit to encourage investment in digital infrastructure. These programs aim to reduce the operational cost burden and stimulate growth in the state's technology sector.

Natural Disaster Risk

Hawaii has a High natural disaster risk profile, with a FEMA National Risk Index score of 87.69 as of September 2025. This score reflects the state's exposure to multiple, significant environmental threats that require purpose-built infrastructure for mitigation.

Key risks include:

• Hurricanes
• Tsunamis
• Volcanic Activity
• Coastal & Riverine Flooding
• Earthquakes
• Wildfires