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Data Centers in Montana

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Montana – Low-Cost Power & Tax Advantages

Montana is an emerging data center market for organizations whose primary drivers are low operational costs and high physical security. The state's combination of inexpensive power, zero sales tax, and specific property tax incentives creates a compelling financial model for workloads that are not hyper-sensitive to latency, such as archival, backup, and large-scale data processing. This makes Montana a strategic choice for businesses looking to optimize their total cost of ownership away from expensive and crowded primary markets.

Montana: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity but lacks a major interconnection hub or public peering exchange.
Direct Cloud On-Ramps0 — as of September 2025The nearest major on-ramp hubs are in Denver or Seattle; private connectivity is required.
Power Cost$0.05–$0.07/kWh, as of September 2025Highly competitive pricing driven by a low-carbon generation mix of 57%.
Disaster RiskModerate (59.12), as of September 2025Primary risks are atmospheric and geological. No exposure to hurricanes or coastal flooding.
Tax IncentivesYesOffers property tax abatements specifically authorized to attract new data center investments.
Sales Tax0.00% Sales Tax, as of September 2025Significant savings on all hardware, software, and infrastructure equipment purchases.

Network & Connectivity Ecosystem

Montana's connectivity is sufficient for regional needs but is not a primary interconnection point. The ecosystem is built for resilience and local delivery rather than for high-frequency, cross-continental traffic.

Carrier Density & Carrier Neutrality The market provides access to over 4 network providers, as of September 2025. While not densely populated with carriers, facilities typically offer diverse fiber paths from multiple providers, ensuring uptime for critical operations.

Direct Cloud On-Ramps There are no direct cloud on-ramps located within Montana, with 0 cloud regions accessible directly. Accessing major cloud providers like AWS, Google Cloud, or Microsoft Azure requires network connections to hubs in Denver or Seattle. Private network extensions via wave or PNI are the standard methods for establishing reliable, low-latency cloud access.

Internet Exchange Points (IXPs) There are no major public Internet Exchanges in Montana. Most network peering is conducted privately between carriers or routed through the nearest national hubs like the Denver IX or the Seattle Internet Exchange (SIX).

Bare Metal Bare metal server options are available from providers operating within the state. Deployments from providers like ColoCrossing offer cost-effective compute capacity without the overhead of virtualization.

Power Analysis

Montana’s key advantage is its low-cost and increasingly sustainable power, making it a prime location for energy-intensive computing.

Average Cost Of Power Industrial power rates range from $0.05 to $0.07 per kWh, as of September 2025. This pricing is among the lowest in the United States and offers a substantial reduction in operational expenses compared to coastal markets.

Power Grid Reliability The power grid is well-engineered to serve industrial users. Data centers are typically located with access to redundant power feeds and substation diversity, providing a stable foundation for high-uptime requirements.

Market Access, Business & Tax Climate

Montana's business environment is structured to attract investment through a highly favorable tax structure, especially for capital-intensive projects like data centers.

Proximity To Key Business Districts Data centers in Montana serve state government agencies, university research institutions, and regional businesses. The market is less about proximity to a specific business district and more about providing a secure, low-cost environment for destination workloads.

Regional Market Reach From Montana, digital services can effectively reach users across the Northern Rocky Mountains and Upper Midwest. It is a logical location for disaster recovery sites for businesses operating in the Pacific Northwest.

Tax Advantage For Data Centers Montana offers one of the most attractive tax climates for data centers in the nation. The complete absence of a state sales tax eliminates a major capital expense during build-out and hardware refresh cycles, while specific legislation provides significant property tax abatements.

Natural Disaster Risk

Montana has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 59.12 out of 100, as of September 2025. The state is insulated from coastal and hurricane-related threats, with risks being primarily geological or weather-related.

Key risks include wildfire, severe winter weather, earthquake, riverine flooding, and drought. Facility selection, construction standards, and operational planning are critical to mitigate these regional hazards.

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