Data Centers in Bozeman
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Bozeman – Resilient Infrastructure In The Mountain West
Bozeman offers a compelling alternative to crowded primary markets, providing access to low-cost, low-carbon power and significant tax advantages. For companies prioritizing operational resilience and cost efficiency for their Western US presence, this emerging market delivers a stable foundation for growth and disaster recovery strategies.
Bozeman: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, suitable for many enterprise and DR workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in Denver or Salt Lake City. |
| Power Cost | $0.05–$0.07/kWh, as of September 2025 | Montana's industrial rates are highly competitive, lowering operational expenses. |
| Disaster Risk | Moderate (59.12), as of September 2025 | Lower risk profile than many coastal or seismically active primary data center markets. |
| Tax Incentives | Yes | DC-specific property tax abatements of 50% or 75% are available. |
| Sales Tax | 0.00%, as of Midyear 2025 | No state sales tax provides a significant cost advantage on hardware purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Bozeman is served by 2 providers across its 2 data centers, as of September 2025. The market supports carrier-neutral interconnection, though the ecosystem is smaller than in primary hubs. Most facilities offer access to a mix of regional and national fiber networks.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Bozeman, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the nearest major interconnection hubs in Denver or Salt Lake City. Private network extensions using wave or dedicated circuits are common for establishing secure, low-latency cloud access.
Internet Exchange Points (IXPs) The market does not host a major public internet exchange. Peering is typically handled privately between carriers or transit providers within local data centers. For broader peering, traffic is routed through regional IXPs in Denver or Salt Lake City.
Bare Metal Bare metal server options are available in the region, providing dedicated compute resources for performance-sensitive applications. Providers like phoenixNAP and Hivelocity can serve customers in the area through network partners.
Power Analysis
Average Cost Of Power Industrial power rates in Bozeman range from $0.05–$0.07/kWh, as of September 2025. This pricing is significantly lower than the national average, making it a key financial advantage for power-dense computing. The favorable energy costs directly reduce total cost of ownership for colocation and large-scale deployments.
Power Grid Reliability Montana's power grid is reliable, supported by a diverse generation mix that includes 57% from low-carbon and renewable sources. Data centers in the region are typically supported by well-engineered infrastructure capable of providing redundant power feeds to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Bozeman's data centers serve the growing technology, research, and outdoor industries centered around Montana State University and the city's burgeoning tech scene. This proximity supports local enterprises requiring low-latency infrastructure.
Regional Market Reach As a hub in the Mountain West, Bozeman provides effective digital infrastructure access for a broad geographic area, including Montana, Idaho, Wyoming, and the Dakotas. It is an excellent location for disaster recovery sites for businesses with primary operations in Denver, Salt Lake City, or Seattle.
Tax Advantage For Data Centers Montana provides data-center-specific property tax abatements that can reduce taxable value by 50% or 75%. Combined with the state's 0% sales tax, these incentives create one of the most favorable tax environments in the country for capital-intensive data center projects.
Natural Disaster Risk
Bozeman has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 59.12 out of 100, as of September 2025. This rating is relatively low compared to many major US markets, particularly those on the coasts.
The primary environmental risks to consider are:
- Winter Weather: Severe winter storms can impact logistics and travel.
- Wildfire: A consideration for the broader region, requiring facility-level mitigation.
- Drought: A recurring environmental condition affecting the Mountain West.
- Earthquake: The region has seismic activity, though it is less frequent and severe than in West Coast markets.
- Riverine Flooding: A localized risk in specific low-lying areas.
