Data Centers in Idaho

Idaho – Reliable Infrastructure and Low Risk

Idaho presents a compelling market for companies prioritizing operational stability, low disaster risk, and cost control for their digital infrastructure. The state's combination of favorable tax policies and a low-threat natural environment ensures predictable uptime and a lower total cost of ownership for colocation, backup, and disaster recovery workloads. For businesses looking to serve the Pacific Northwest without the higher costs of coastal markets, Idaho offers a smart, resilient alternative.

Idaho: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With approximately 7 providers operating 10 data centers, Idaho offers a focused but effective connectivity environment as of September 2025. Carrier-neutral facilities are available, primarily in the Boise area, providing access to multiple regional and national networks for redundancy.

Direct Cloud On-Ramps: Idaho has 0 direct cloud on-ramps and 0 cloud regions as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network extensions or private wave circuits to primary access hubs in Seattle, Washington, or Salt Lake City, Utah.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most interconnection is handled through private peering arrangements inside colocation facilities or by routing traffic to major regional exchanges in nearby markets.

Bare Metal: Bare metal server options are available in Idaho, offering dedicated compute resources for performance-intensive applications. Providers like Hivelocity and ColoCrossing can service the region, providing an alternative to virtualized cloud instances.

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, combined with a grid powered by 69% renewable sources, makes it a cost-effective and sustainable location for running compute infrastructure. These favorable rates directly reduce ongoing operational expenses.

Power Grid Reliability: The power grid, particularly around the Boise technology corridor, is well-engineered and reliable. Data centers are often supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Idaho, especially around Boise, are strategically located to serve the state's growing technology, semiconductor, and advanced manufacturing sectors. This proximity allows for low-latency connections essential for local enterprise and research operations.

Regional Market Reach: Idaho is well-positioned to serve as a disaster recovery and secondary compute location for businesses in Washington, Oregon, and Northern California. Its location offers geographic separation from West Coast fault lines while maintaining effective connectivity to the broader Pacific Northwest and Intermountain West.

Tax Advantage For Data Centers: Idaho provides significant financial incentives that lower the cost of building and operating a data center. The state offers a sales tax exemption on computer equipment, software, and construction materials, which substantially reduces initial capital expenditures.

Natural Disaster Risk

Idaho has a moderate natural disaster risk profile, with a National Risk Index score of 39.99 out of 100 as of September 2025. This score indicates a relatively safe environment compared to many other US states. The primary risks for consideration are wildfire, riverine flooding, earthquake, drought, and winter weather. The threats from coastal flooding and hurricanes are non-existent.