Data Centers in Idaho

Idaho – Cost-Effective Power in a Stable Environment

Idaho is an emerging data center market ideal for organizations prioritizing low operational expenses and a predictable risk profile. The state's combination of inexpensive and renewable energy, coupled with significant tax incentives, delivers a compelling total cost of ownership for workloads that do not require millisecond proximity to a Tier 1 hub.

Idaho: At A Glance

Network & Connectivity Ecosystem

Idaho's connectivity is reliable for regional operations, though it is not a primary interconnection point. The ecosystem is built around regional carriers and private connectivity to major West Coast and Mountain West hubs.

Carrier Density & Carrier Neutrality: With over 7 providers, Idaho has a developing carrier ecosystem, as of September 2025. The 10 data centers in the state offer a mix of single-carrier and carrier-neutral facilities, primarily concentrated around Boise.

Direct Cloud On-Ramps: There are no direct, public cloud on-ramps within Idaho, as of September 2025. Businesses connect to hyperscale cloud providers by establishing private network links to facilities in major nearby markets such as Salt Lake City or Seattle.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most network peering is conducted privately between carriers or routed through major exchange points in adjacent markets.

Bare Metal: Bare metal server options are available, typically through providers offering services from data centers in Boise. This allows businesses to deploy dedicated compute resources close to their regional user base. Providers like phoenixNAP and Hivelocity can serve the region.

Power Analysis

Idaho stands out for its low-cost and sustainable power, making it a highly attractive location for energy-intensive computing.

Average Cost Of Power: Industrial electricity rates generally fall within the $0.07 to $0.09/kWh range, as of September 2025. These competitive rates directly lower the operational expenses associated with running high-density server racks. The state's energy mix is dominated by renewables (69%), primarily hydropower, providing both cost savings and sustainability benefits.

Power Grid Reliability: The power grid, particularly around the Boise metro area, is well-engineered to support industrial customers. The infrastructure is robust, supported by a significant contribution from hydroelectric generation, which provides a stable and consistent power source.

Market Access, Business & Tax Climate

Idaho offers a pro-business environment with strategic access to the Western United States and compelling financial incentives.

Proximity To Key Business Districts: Data centers in Idaho are primarily located near Boise, serving the state's growing technology, advanced manufacturing, and agricultural sectors. This proximity provides low-latency connectivity for local enterprise and research institutions.

Regional Market Reach: From Idaho, digital services can effectively reach populations across the Mountain West and Pacific Northwest, including markets in Utah, Oregon, Washington, and Montana. It serves as a good location for disaster recovery for West Coast operations.

Tax Advantage For Data Centers: Idaho provides substantial tax incentives that reduce the upfront cost of building or expanding a data center. The state's sales tax exemption on computer equipment, software, and construction materials makes large capital investments more affordable.

Natural Disaster Risk

Idaho has a moderate natural disaster risk profile, allowing for safe operations with standard resiliency planning.

Based on its FEMA National Risk Index score of 39.99, Idaho's overall risk is considered moderate, as of September 2025. The primary environmental threats to data center operations are manageable and include:

• Wildfire
• Drought
• Earthquake
• Avalanche
• Riverine Flooding
• Winter Weather
• Landslide