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Montana – Secure Low-Cost Infrastructure for Regional Edge

Montana is a strategic choice for businesses needing low operating costs and high security for regional edge computing. This market offers a tax-friendly landscape and reliable power, making it a dependable destination for disaster recovery and secondary infrastructure. Organizations leverage this geography to achieve high uptime and significant tax savings simultaneously.

Montana: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional reach with expanding fiber connections.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hubs are Seattle and Salt Lake City.
Power Cost$0.05–$0.07/kWh, as of September 2025Very competitive with a 57% low-carbon energy mix.
Disaster RiskModerate (59.12/100), as of September 2025Primary concerns include wildfire and severe winter weather.
Tax IncentivesYesLocal property tax abatements support data center investments.
Sales Tax0.00%, as of September 2025One of few states with no state-level sales tax.

Network & Connectivity Ecosystem

Montana serves as a vital corridor for data moving between the Pacific Northwest and the Midwest. The infrastructure is purpose-built to handle regional data demands with high reliability as of September 2025.

Carrier Density & Carrier Neutrality: There are over 4 specialized providers operating in the state as of September 2025. These carriers focus on high-uptime fiber routes and neutral interconnection, providing reliable options for regional enterprises and government agencies.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps located physically within the state as of September 2025. Access to AWS, Google Cloud (GCP), and Microsoft Azure is typically achieved through private network interfaces or dedicated waves to major hubs in Salt Lake City or Seattle.

Internet Exchange Points (IXPs): The Yellowstone Regional Internet Exchange (YRIX) in Billings serves as a key peering point. It reduces latency for local traffic and improves regional routing efficiency for local businesses and service providers.

Bare Metal: Bare metal services are available through regional specialists and global providers like Hivelocity. This allows for high-performance hardware deployments without the overhead of virtualization.

Power Analysis

Energy availability in Montana is a primary draw for data center operators. It offers a blend of low costs and high sustainability as of September 2025.

Average Cost Of Power: Industrial electricity rates range from $0.05/kWh to $0.07/kWh as of September 2025. These rates are significantly below the national average, directly reducing the total cost of ownership for power-intensive deployments.

Power Grid Reliability: The grid is well-engineered with multi-substation support in major markets like Billings and Missoula. Reliability is supported by a diverse generation mix, including substantial hydroelectric and wind resources that account for 57% of the state’s power.

Market Access, Business & Tax Climate

Montana provides a business-friendly landscape that prioritizes long-term operational stability.

Proximity To Key Business Districts: Data centers are concentrated near Billings, Missoula, and Bozeman. These areas support growing sectors in energy, technology, and higher education, providing low-latency access to the economic hubs of the state.

Regional Market Reach: Montana is positioned to serve the Northern Rockies and the Intermountain West. It acts as an essential edge location for serving populations across Idaho, Wyoming, and the Dakotas.

Tax Advantage For Data Centers: The state offers significant financial benefits, including a 0% sales tax and specialized property tax abatements. These incentives can reduce taxable value by up to 75% for qualifying data center investments, accelerating the return on infrastructure spending.

Natural Disaster Risk

Montana maintains a Moderate (59.12/100) risk profile as of September 2025. While the state is safe from coastal threats, it faces specific environmental challenges that require resilient facility engineering.

  • Wildfire: High risk during summer months, requiring advanced air filtration and clear perimeters.
  • Winter Weather: Significant snow and ice potential requires resilient backup power and fuel storage.
  • Earthquake: Moderate risk in western regions, often managed through seismic bracing.
  • Hail and Tornado: Periodic severe storms occur in the eastern plains, necessitating reinforced roof structures.
  • River Flood: Seasonal risks in specific low-lying areas require careful site selection.
  • Lightning: Common during seasonal storms, managed through integrated grounding systems.
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