Data Centers in Nevada

Nevada – Strategic Hub for West Coast Connectivity

Nevada is a primary data center market for companies requiring resilient, low-latency connectivity to California and the broader US West Coast without exposure to California's higher power costs and disaster risks. Its favorable tax climate and growing renewable energy sector make it a compelling alternative for scalable deployments. This combination of location, power, and financial incentives delivers a strategic advantage for businesses managing high-stakes digital infrastructure.

Nevada: At A Glance

Network & Connectivity Ecosystem

Nevada offers a strong and diverse connectivity landscape, serving as a critical junction for traffic moving between Northern California, Southern California, and other major US markets like Phoenix and Salt Lake City.

Carrier Density & Carrier Neutrality With 37 data centers from 24 providers, the state hosts a dense ecosystem of network carriers, as of September 2025. This ensures competitive pricing and extensive options for redundancy and private network access.

Direct Cloud On-Ramps The market features over 11 cloud on-ramps, enabling direct, low-latency connections to 12 cloud regions, as of September 2025. Major public cloud providers with dedicated access points in Nevada include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure

Internet Exchange Points (IXPs) While Nevada does not host a major public internet exchange, most peering occurs privately within carrier-neutral data centers. This facilitates efficient traffic exchange between networks, content providers, and enterprises connecting in Las Vegas and Reno.

Bare Metal Bare metal server options are readily available from providers in the region, including companies like phoenixNAP and Hivelocity, offering dedicated compute for performance-sensitive workloads.

Power Analysis

Nevada's power infrastructure is a key advantage, combining competitive costs with a focus on renewable generation.

Average Cost Of Power The average industrial electricity rate is approximately $0.07/kWh, as of 2022. This competitive pricing can significantly lower total operational costs for dense compute environments compared to neighboring states.

Power Grid Reliability The power grid supporting the primary data center hubs in Las Vegas and Reno is well-engineered for high availability. Major facilities are typically fed by redundant substations, ensuring reliable power delivery for critical operations. The state's energy mix includes 43% from renewables and 53% from natural gas.

Market Access, Business & Tax Climate

Nevada's business-friendly environment and strategic location provide excellent market access and significant financial advantages.

Proximity To Key Business Districts Data centers in Nevada are concentrated around Las Vegas and Reno. These locations offer proximity to major commercial, entertainment, and logistics hubs, making them ideal for supporting local enterprise and gaming industries while acting as a disaster recovery site for businesses in California.

Regional Market Reach From Nevada, organizations can effectively serve the entire West Coast of the United States. Its location provides low-latency connectivity to the massive markets of Los Angeles, the San Francisco Bay Area, and Phoenix, all reachable in milliseconds.

Tax Advantage For Data Centers Nevada provides significant tax incentives for new or expanding data center projects. Qualifying facilities can receive partial abatements on both personal property tax and sales and use tax, directly reducing capital and operational expenditures.

Natural Disaster Risk

Nevada has a High natural disaster risk profile, with a FEMA National Risk Index score of 90.55, as of September 2025. The primary threats are geologic and climate-related, with minimal exposure to coastal events.

Key risks include:

• Earthquake
• Drought
• Wildfire
• Heat Wave
• Landslide
• Riverine Flooding
• Lightning