Data Centers in Missoula
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Missoula, Montana, United States – Cost-Effective & Resilient Infrastructure
Executive Summary
Missoula serves as a strategic market for companies requiring highly resilient infrastructure with extremely low power and tax costs. Its location offers a stable operating environment, making it a compelling choice for disaster recovery, backup, and compute workloads that are not hyper-sensitive to latency. This market provides a distinct financial advantage for businesses looking to optimize operational expenditures.
Missoula, Montana, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Seattle; private network extensions are available. |
| Power Cost | $0.05–$0.07/kWh – as of September 2025 | Extremely competitive industrial power rates, among the lowest in the nation. |
| Disaster Risk | Moderate (59.12) – as of September 2025 | Risks are primarily weather-related; avoids major coastal and seismic threats. |
| Tax Incentives | Yes – as of September 2025 | DC-specific property tax abatements of 50% or 75% are available. |
| Sales Tax | 0.00% – as of September 2025 | No statewide sales tax provides significant hardware procurement savings. |
Network & Connectivity Ecosystem
Missoula is a secondary market with a focus on regional connectivity rather than being a major interconnection hub.
Carrier Density & Carrier Neutrality: The market contains one data center with access to three network providers as of September 2025. This environment offers foundational connectivity options suitable for most enterprise and backup workloads.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Missoula as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest primary hub in Seattle, typically using private network interconnects or wavelength services.
Internet Exchange Points (IXPs): Public peering is not a feature of the Missoula market. Peering is handled privately between carriers or routed through major regional exchanges in cities like Seattle or Denver.
Bare Metal: Bare metal server options are available, though typically deployed via providers that can service secondary markets, such as Hivelocity or phoenixNAP, to support custom compute requirements.
Power Analysis
Montana offers one of the most attractive power cost structures in the United States, making it ideal for power-intensive deployments.
Average Cost Of Power: Industrial electricity rates in Missoula range from $0.05 to $0.07 per kWh as of September 2025. These exceptionally low rates directly reduce the total cost of ownership for data center operations. The state's power mix consists of 57% low-carbon and renewable sources.
Power Grid Reliability: The regional power grid is well-engineered to support industrial operations. Data center facilities typically secure power from redundant substations to ensure high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Missoula provides a highly favorable business environment, particularly from a cost perspective, though it is not a primary low-latency hub.
Proximity To Key Business Districts: The local data center serves businesses in Missoula, including the University of Montana, and regional enterprises in healthcare and technology. Its location is strategic for local compute and disaster recovery needs.
Regional Market Reach: Missoula effectively serves as a resilient IT infrastructure location for the broader Mountain West region. It is a strong choice for workloads that can tolerate higher latency to end-users in exchange for significant cost and risk mitigation benefits.
Tax Advantage For Data Centers: Montana offers powerful financial incentives for data center operators and tenants. The complete absence of a state sales tax creates immediate savings on all hardware and software purchases, while specific property tax abatements can reduce long-term operational 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 area is insulated from hurricanes, coastal floods, and other events that affect coastal hubs. Key risks are primarily geological and weather-related.
The main risks to consider are:
- Earthquake
- Wildfire
- Landslide
- Hail
- Lightning
- Riverine Flooding
- Winter Weather
