Data Centers in Billings

Billings, Montana, United States – Low-Cost Regional Hub

Billings offers a compelling environment for businesses prioritizing low operational costs and a stable risk profile. The combination of zero sales tax, data center-specific property tax incentives, and some of the lowest power costs in the nation makes it an attractive market for workloads not requiring direct, low-latency cloud access.

Billings, Montana, United States: At A Glance

Network & Connectivity Ecosystem

Billings is a regional connectivity hub serving Montana and the surrounding states. Its ecosystem is well-suited for disaster recovery, content delivery, and applications tolerant of higher latency to major cloud regions.

Carrier Density & Carrier Neutrality: The market contains 5 data centers with service from at least 3 unique network providers as of September 2025. This provides foundational carrier diversity for most business needs, with carrier-neutral facilities available.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Billings. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest primary hub in Denver, using private network interconnects or wavelength services.

Internet Exchange Points (IXPs): The market does not host a major public internet exchange. Peering is typically handled privately between carriers or routed through larger IXPs in Denver or Salt Lake City to optimize traffic flow.

Bare Metal: Bare metal server options are available in the region, primarily through national providers that can deploy infrastructure into local data centers. Providers like Hivelocity offer solutions for companies needing dedicated physical hardware.

Power Analysis

Montana’s power infrastructure is a key advantage for the Billings market, offering both low costs and a favorable generation mix.

Average Cost Of Power: Industrial electricity rates range from $0.05 to $0.07 per kWh as of September 2025, placing Billings among the most affordable markets in North America. These low costs directly reduce the total cost of ownership for any significant compute deployment.

Power Grid Reliability: The regional power grid is stable and well-maintained. Data centers in the area are supported by infrastructure capable of meeting uptime requirements for typical business operations. The energy mix includes over 57% from low-carbon and renewable sources.

Market Access, Business & Tax Climate

Billings provides a strong business environment, bolstered by strategic tax policies that directly benefit capital-intensive operations like data centers.

Proximity To Key Business Districts: Data centers in Billings are positioned to serve the city’s core industries, including energy, healthcare, and logistics. The infrastructure supports local enterprise and serves as a digital gateway for the state.

Regional Market Reach: From Billings, organizations can effectively serve customers across Montana, Wyoming, and the Dakotas. It is a strategic location for delivering services to the Northern Rockies and Mountain West regions of the United States.

Tax Advantage For Data Centers: Montana offers powerful financial incentives. The complete absence of a state sales tax eliminates a major cost for hardware procurement, while specific legislation authorizes property tax abatements of up to 75% for new data center investments.

Natural Disaster Risk

Billings has a moderate natural disaster risk profile, with no single high-impact threat dominating its environmental landscape. The FEMA National Risk Index score is 59.12 out of 100, which is considered moderate as of September 2025.

The primary risks for the area are related to severe weather and geological factors. Key considerations include potential disruption from winter weather, drought, wildfire, and hail. The risk from events like tornadoes and earthquakes is present but lower than in other national hotspots.