Data Centers in Idaho

Idaho – A Stable Hub for Western US Workloads

Executive Summary

Idaho is a growing secondary data center market ideal for businesses prioritizing low power costs, disaster recovery, and a stable risk profile. Its access to significant renewable energy sources makes it a strong choice for companies with sustainability goals whose applications can tolerate slightly higher latency to the primary West Coast hubs. This market delivers operational efficiency and resilience for workloads deployed in the Intermountain West.

Idaho: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality The market includes at least 7 unique network providers as of September 2025, with colocation options available in 10 data centers. While not as dense as primary markets, Idaho offers sufficient carrier diversity for most enterprise and disaster recovery needs, with carrier-neutral facilities concentrated around Boise.

Direct Cloud On-Ramps There are no direct, in-market cloud on-ramps from major hyperscalers as of September 2025. Businesses connect to cloud providers through private network interconnects (PNI) or dedicated wavelength services to major hubs in Salt Lake City, Utah, or Seattle, Washington.

Internet Exchange Points (IXPs) Public peering is limited within Idaho. Most network traffic exchange occurs through private peering arrangements within local data centers or is routed to major regional IXPs in surrounding states.

Bare Metal Bare metal server capacity is available in Idaho, providing dedicated compute for performance-sensitive applications. Providers like ColoCrossing offer solutions in the region, supplementing colocation with on-demand hardware.

Power Analysis

Average Cost Of Power Industrial electricity rates in Idaho typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing is driven by a grid powered by 69% renewable sources, primarily hydroelectric, which provides a significant cost advantage for high-density deployments.

Power Grid Reliability Idaho's power grid is well-engineered and reliable, particularly in the Boise area where data center development is focused. The infrastructure is built to support the state's significant agricultural and technology sectors, offering dependable power for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Idaho are primarily located near Boise, the state's capital and largest business center. This proximity serves the growing local technology, healthcare, and advanced manufacturing industries, providing low-latency access for local operations.

Regional Market Reach From Idaho, organizations can effectively serve customers across the Intermountain West and the Pacific Northwest. It serves as a strategic point of presence for reaching markets in Utah, Oregon, Washington, Montana, and Wyoming.

Tax Advantage For Data Centers Idaho provides significant financial incentives for data center operators and tenants. The state's programs include a sales tax exemption on the purchase of computer equipment, software, and construction materials for qualifying projects. This directly reduces the capital expenditure required to build and scale digital infrastructure.

Natural Disaster Risk

Idaho has a Moderate natural disaster risk profile, with a FEMA National Risk Index score of 39.99 as of September 2025. This is a favorable rating compared to many other US markets, indicating a stable environment for critical infrastructure. The primary risks to consider are regional and include earthquake, wildfire, winter weather, and potential drought conditions. The state has no exposure to hurricane, tsunami, or significant coastal flooding events.