Data Centers in Missoula
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Missoula – Low-Cost Power & Favorable Tax Climate
Missoula offers a compelling secondary market for workloads that are not latency-sensitive but demand low operational costs. With some of the most affordable industrial power in the United States and a beneficial tax environment, it is an excellent choice for disaster recovery sites, data archiving, and compute-intensive applications.
Missoula: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary national fiber hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access requires connection to major hubs like Seattle or Denver. |
| Power Cost | $0.05–$0.07/kWh – as of September 2025 | Very competitive industrial rates. Mix is 57% low-carbon/renewables. |
| Disaster Risk | Moderate (59.12) – as of September 2025 | Primary risks include winter weather, wildfire, and drought; seismic risk is present. |
| Tax Incentives | Yes | Local property tax abatements are authorized to attract data center investment. |
| Sales Tax | 0.00% – as of September 2025 | Montana has no state sales tax, offering significant savings on hardware. |
Network & Connectivity Ecosystem
Missoula is a regional connectivity point rather than a primary national hub. The infrastructure supports local and regional business needs effectively.
Carrier Density & Carrier Neutrality: The market is served by 3 providers, as of September 2025, offering foundational connectivity options. Carrier-neutral facilities provide choice for interconnection.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers, as of September 2025. Businesses connect to cloud services via network extensions to primary hubs such as Seattle or Denver.
Internet Exchange Points (IXPs): Public peering is not established in Missoula. Most interconnection is handled privately between carriers or routed through major peering centers in larger metropolitan areas.
Bare Metal: Bare metal server options are available, typically through providers that service edge and regional markets. Services from vendors like Hivelocity can provide dedicated compute capacity in the broader region.
Power Analysis
Montana's power profile is a significant advantage for data center operations, characterized by low costs and a favorable generation mix.
Average Cost Of Power: Industrial electricity rates range from $0.05 to $0.07 per kWh, as of September 2025, placing Missoula among the most cost-effective locations in North America. This low cost directly reduces the total cost of ownership for high-density deployments.
Power Grid Reliability: The regional power grid is well-engineered to serve its industrial base. Data centers in the area are supported by reliable infrastructure designed to handle the demands of the local climate and geography.
Market Access, Business & Tax Climate
Missoula provides a stable business environment with distinct financial advantages for capital-intensive operations like data centers.
Proximity To Key Business Districts: Data centers in the area serve the University of Montana, regional healthcare systems, and a growing technology sector. Proximity facilitates low-latency access for local research, administration, and digital services.
Regional Market Reach: Missoula serves as a digital hub for western Montana and can effectively reach into Idaho and the broader Northern Rockies region.
Tax Advantage For Data Centers: Montana offers significant financial benefits, including a complete exemption from state sales tax on hardware and software purchases. Additionally, data center-specific property tax abatements can reduce long-term operational tax burdens for qualifying facilities.
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 environment is stable, but facilities must be designed to mitigate several specific regional hazards. The main risks are winter weather, wildfire, drought, earthquake, hail, and river flooding.
