Data Centers in Billings

Billings – Low-Cost Power and Strategic Inland Location

Billings offers a compelling alternative to crowded coastal data center markets, combining some of the lowest power costs in the nation with a favorable tax climate. This market is ideal for organizations prioritizing operational efficiency, disaster recovery, and serving the Northern Rocky Mountain region. Its strategic inland location provides a stable, low-risk environment for critical infrastructure.

Billings: At A Glance

Network & Connectivity Ecosystem

Billings serves as a regional connectivity point rather than a national peering hub. The infrastructure is sufficient for local and regional business but relies on larger markets for high-volume, global interconnection.

Carrier Density & Carrier Neutrality: The market includes over 3 carriers, as of September 2025, providing foundational network diversity. Facilities generally offer carrier-neutral access, allowing customers to connect with their preferred providers.

Direct Cloud On-Ramps: There are no direct, public cloud on-ramps within Billings, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the nearest hubs in Denver or Salt Lake City, typically using private network extensions or wavelength services.

Internet Exchange Points (IXPs): Public peering is limited in Billings. Most network interconnection is handled privately between carriers or routed through major IXPs in Denver.

Bare Metal: Bare metal server options are available, primarily through providers that can deploy into regional data centers. Services from providers like Hivelocity or ColoCrossing can be configured for deployment in the region.

Power Analysis

Montana's power landscape is a key advantage for data center operators, offering very low costs and a favorable generation mix.

Average Cost Of Power: Industrial electricity rates in Billings range from $0.05–$0.07/kWh, as of September 2025. This price point is among the most competitive in the United States, driving down total operational costs significantly.

Power Grid Reliability: The local power grid is well-engineered for the region's industrial needs. The energy mix features 57% low-carbon and renewable sources, offering a stable and increasingly sustainable power profile.

Market Access, Business & Tax Climate

Billings combines strategic market access with one of the most attractive tax environments in the country for data centers.

Proximity To Key Business Districts: Data centers in Billings support the region's primary industries, including energy, agriculture, healthcare, and logistics. This proximity provides low-latency access for local enterprises managing critical operations.

Regional Market Reach: From its location in southern Montana, Billings provides effective service delivery to a wide geographic area, including all of Montana, Wyoming, and the Dakotas. It is a logical hub for content delivery and services targeting the Northern Rockies and Plains.

Tax Advantage For Data Centers: Montana offers specific property tax abatements that can reduce the taxable value of a data center by up to 75%. Combined with the complete absence of a statewide sales tax, this creates a powerful financial incentive for new data center construction and IT hardware investments.

Natural Disaster Risk

Billings has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 59.12 out of 100, as of September 2025. Its inland location protects it from hurricanes and coastal flooding. The primary environmental risks are related to weather and geological factors specific to the region.

Key risks include:

• Drought
• Wildfire
• Hail
• Tornado
• Winter Weather
• Riverine Flooding
• Earthquake