Data Centers in Missoula
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Missoula – Low-Cost Power & Tax Incentives
Executive Summary
Missoula is an emerging market ideal for businesses prioritizing low power costs and significant tax advantages over dense interconnection. For workloads where total cost of ownership is the primary driver, this location offers a compelling financial case without the high operational expenses of primary data center hubs. This allows for cost-effective scaling of compute-intensive applications.
Missoula: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a developing secondary market with foundational carrier access. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | The nearest cloud hubs are Seattle and Denver; private extensions are available. |
| Power Cost | $0.05–$0.07/kWh — as of September 2025 | Very competitive rates driven by a favorable regional energy mix. |
| Disaster Risk | Moderate (NRI Score: 59.12) — as of September 2025 | Primary risks include wildfire, winter weather, and flooding. |
| Tax Incentives | Yes | Data center-specific property tax abatements are authorized to attract investment. |
| Sales Tax | 0.00% — as of September 2025 | Montana has no state sales tax, eliminating tax on hardware purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
Missoula's connectivity ecosystem is developing, with over 3 unique network providers available as of September 2025. The environment supports carrier-neutral colocation, providing foundational diversity for enterprise and regional workloads, though it is not a dense national peering hub.
Direct Cloud On-Ramps
There are no direct public cloud on-ramps located within Missoula. Businesses requiring dedicated, low-latency connections to providers like AWS, Google Cloud (GCP), or Microsoft Azure must establish private network extensions to major hubs such as Seattle or Denver.
Internet Exchange Points (IXPs)
The market does not host a major public Internet Exchange Point. Peering is typically handled privately between carriers or routed through network POPs in larger regional hubs like Denver or Seattle to connect to the broader internet backbone.
Bare Metal
Bare metal server capacity is available in the region, often deployed on-demand to meet specific customer requirements. Providers such as phoenixNAP can provision dedicated servers for compute-intensive workloads that benefit from the area's low power costs.
Power Analysis
Average Cost Of Power
Industrial power costs in Missoula range from $0.05–$0.07/kWh as of September 2025, placing it among the most affordable markets in the United States. This significant cost advantage directly reduces the operational expense for high-density deployments like AI training or scientific computing.
Power Grid Reliability
The regional power grid is reliable, supported by a generation mix that includes over 57% from low-carbon and renewable sources. Data centers in the area are typically served by well-maintained utility infrastructure capable of supporting mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Missoula serve local and regional institutions, including the University of Montana, healthcare systems, and government agencies. Colocation provides these organizations with low-latency infrastructure for primary production workloads and disaster recovery.
Regional Market Reach
Missoula provides a strategic location for serving users across Montana and the greater Mountain West. It offers a viable alternative for improving application performance in a vast geographical area not directly served by data centers in coastal hubs.
Tax Advantage For Data Centers
Montana offers a highly favorable tax climate, featuring a 0.00% state sales tax as of September 2025, which eliminates taxes on all hardware and software purchases. The state also authorizes local governments to provide substantial property tax abatements specifically for data center investments, further lowering long-term operating costs.
Natural Disaster Risk
Missoula 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 primary environmental threats to infrastructure are Wildfire, Winter Weather (including ice storms), Riverine Flooding, and Earthquake risk. Other notable hazards for the region include Drought, strong winds, and severe hail.
