Data Centers in Helena
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Helena, Montana, United States – Cost-Effective & Resilient Infrastructure
Helena offers a compelling market for businesses prioritizing low operational costs and high resilience. Its combination of extremely low-cost power, zero sales tax, and specific property tax abatements creates a financially advantageous environment for data center operations. This makes it an ideal location for workloads that require stable, long-term hosting without the need for ultra-low latency to major coastal hubs.
Helena, Montana, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a major national interconnection point. |
| 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 | Exceptionally low industrial power costs drive significant operational savings. |
| Disaster Risk | Moderate (59.12) – as of September 2025 | Primarily exposed to atmospheric and geological risks common to the region. |
| Tax Incentives | Yes | Data center-specific property tax abatements are available to attract investment. |
| Sales Tax | 0.00% – as of mid-2025 | A major financial benefit, eliminating tax on hardware and software purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the market is served by over 3 network providers. While not a dense national hub, Helena provides sufficient carrier diversity for most enterprise and disaster recovery needs, with at least one carrier-neutral colocation facility available.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Helena as of September 2025. Businesses requiring dedicated cloud access typically establish private network connections (PNI or wave) to major hubs like Denver or Salt Lake City.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through larger national exchange points in surrounding regions.
Bare Metal: Bare metal server options are available in the region, often provided by national operators who can deploy equipment into local data centers. Providers like phoenixNAP or ColoCrossing can facilitate deployments.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Helena are exceptionally competitive, ranging from $0.05 to $0.07 per kWh as of September 2025. This cost is significantly lower than the national average and presents a primary driver for choosing this market for power-intensive workloads. The grid mix is predominantly composed of low-carbon and renewable sources (57%).
Power Grid Reliability: The power grid supporting the Helena area is well-engineered for its industrial and government users. Infrastructure is designed to handle the state's challenging weather conditions, providing reliable service for critical facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Helena are positioned to serve the state capital's government agencies, local financial services, and healthcare sectors. Proximity is critical for state government data and regional business continuity.
Regional Market Reach: From Helena, digital services can effectively reach the entire state of Montana and parts of neighboring states like Wyoming, Idaho, and the Dakotas. It serves as a logical hub for a wide but sparsely populated geographic area.
Tax Advantage For Data Centers: Montana's most significant financial benefit is its complete lack of a state sales tax, which eliminates a major capital expense when purchasing IT hardware. This is complemented by data center-specific property tax abatements that can reduce the taxable value of an asset by up to 75%.
Natural Disaster Risk
Helena has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 59.12 as of September 2025. The primary risks are environmental and atmospheric, common to the Rocky Mountain region. Key hazards include drought, wildfire, winter weather, and hail. The area also has a recognized earthquake risk, though it is not as severe as in coastal regions. Careful facility engineering and operational planning can mitigate these exposures effectively.
