Data Centers in Nevada

Nevada – West Coast Connectivity without the Premium

Nevada is the go-to destination for enterprises that need low-latency access to California without the crushing operational costs. This market serves as a vital relief valve for Silicon Valley and Los Angeles, providing a stable, tax-friendly environment for high-density compute and mission-critical storage. Choosing this location allows businesses to secure their infrastructure while protecting their bottom line.

Nevada: At A Glance

Network & Connectivity Ecosystem

Nevada serves as a vital connectivity hub for the Western United States. The infrastructure provides high-speed paths to major coastal markets and inland tech corridors.

Carrier Density & Carrier Neutrality: There are approximately 20–30 carriers active in the region as of December 2025. This density ensures competitive pricing and diverse routing for all tenants.

Direct Cloud On-Ramps: Over 11 direct connections are available as of December 2025. These provide low-latency access to 12 cloud regions, including AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs): The Nevada Internet Exchange (NINX) is the primary local peering point. It facilitates efficient data exchange and reduces reliance on distant hubs for regional traffic.

Bare Metal: High-performance hardware is available through specialized providers like phoenixNAP and Hivelocity.

Power Analysis

Power availability remains a cornerstone of the local data center market.

Average Cost Of Power: Industrial electricity is approximately $0.07/kWh as of December 2025. The generation mix includes 53% natural gas and 43% renewables. These rates are significantly more attractive than coastal alternatives, directly benefiting high-density deployments.

Power Grid Reliability: The local grid is well-engineered. It features multi-substation support and redundant transmission lines to maintain steady operations in extreme desert conditions.

Market Access, Business & Tax Climate

Nevada offers a pro-business environment that rewards large-scale infrastructure investment.

Proximity To Key Business Districts: Data centers are strategically located near the Las Vegas and Reno business corridors. This proximity allows companies to support local entertainment, gaming, and logistics industries with minimal latency.

Regional Market Reach: Nevada effectively serves as a relief valve for the Silicon Valley and Los Angeles markets. It provides a stable base to reach the entire Southwestern US population.

Tax Advantage For Data Centers: The state offers partial abatements on personal property and sales taxes for qualified data center projects. These incentives make Nevada a preferred location for companies managing significant capital equipment budgets.

Natural Disaster Risk

The region has a High risk profile with a FEMA NRI score of 90.55 as of December 2025.

Risk Rubric: High (90.55/100) as of December 2025.

Primary Hazards: Heat Wave, Wildfire, Drought, Earthquake, Winter Weather, and Landslide.

While the area is free from coastal flooding and tsunamis, operators must account for extreme temperatures and fire risks. Modern facilities here utilize specialized cooling and air filtration to mitigate these environmental challenges. Other risks, such as lightning and river flooding, are present but managed through site-specific engineering.