Data Centers in Bozeman
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Bozeman – Resilient Infrastructure in the Mountain West
Bozeman offers a unique combination of low power costs, zero sales tax, and a low-risk natural disaster profile, making it a compelling alternative market for workloads that require geographic diversity and operational efficiency. For businesses looking to escape the high costs and environmental risks of coastal hubs, Bozeman provides a stable and financially advantageous location for secondary or backup data center operations.
Bozeman: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary national fiber crossroads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Denver or Salt Lake City; private connectivity is available. |
| Power Cost | $0.05–$0.07/kWh – as of September 2025 | Very competitive industrial rates. Low-carbon mix is 57% of the total supply. |
| Disaster Risk | Moderate (59.12/100) – as of September 2025 | A relatively low score with manageable, non-catastrophic environmental risks. |
| Tax Incentives | Yes | Local property tax abatements of 50-75% are available for data centers. |
| Sales Tax | 0.00% (Montana) – as of September 2025 | No sales tax on hardware, software, or services offers significant cost savings. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Bozeman's market supports a modest ecosystem of at least 2 providers, as of September 2025. While not a major hub, the presence of carrier-neutral facilities allows for sufficient redundancy for most business continuity and disaster recovery applications.
Direct Cloud On-Ramps: There are no direct, public cloud on-ramps within Bozeman, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network providers offering private connectivity to larger hubs such as Denver or Salt Lake City.
Internet Exchange Points (IXPs): Public peering is limited in the immediate Bozeman area. Most network interconnection occurs via private peering within local data centers or is backhauled to regional IXPs in major metropolitan areas.
Bare Metal: Bare metal server options are available in the region, often provided by national firms that can place hardware in local colocation facilities. Providers like phoenixNAP and ColoCrossing can serve deployments in secondary markets.
Power Analysis
Average Cost Of Power: Industrial power rates in the Bozeman area are highly competitive, ranging from $0.05 to $0.07 per kWh, as of September 2025. This pricing is significantly lower than most primary US data center markets, creating a direct and substantial reduction in operational expenses. The state's power mix includes 57% from low-carbon and renewable sources.
Power Grid Reliability: The power grid supporting the region is well-engineered for its commercial and light industrial needs. Data centers in the area are typically served by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Bozeman serve Montana's growing technology and photonics industries, Montana State University's research affiliates, and local businesses. The location is ideal for organizations that need infrastructure physically located in the northern Rocky Mountain region.
Regional Market Reach: From Bozeman, businesses can effectively serve users across Montana, Wyoming, Idaho, and the Dakotas. It serves as an excellent edge or disaster recovery location for companies with primary operations in West Coast markets like Seattle or Silicon Valley.
Tax Advantage For Data Centers: Montana offers compelling tax incentives, including significant property tax abatements that can reduce the taxable value of a data center by up to 75%. Combined with the state's 0% sales tax, this creates one of the most favorable tax environments in the country for capital-intensive IT investments.
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. The risk level is considered relatively low compared to the national average, with no single catastrophic threat. Key risks are primarily environmental and geological, including wildfire, drought, earthquake, and severe winter weather. The area is not exposed to primary coastal risks like hurricanes or tsunamis.
