Data Centers in Nevada

Nevada – Cost-Effective Gateway to the US West

Executive Summary

Nevada is a primary destination for companies requiring low-latency access to California and the broader US West without the high costs and seismic risks of coastal markets. This strategic location allows businesses to improve application performance and reduce operational expenses, directly boosting profitability. It's a smart alternative for disaster recovery, primary workloads, and edge deployments.

Nevada: At A Glance

Network & Connectivity Ecosystem

Nevada’s connectivity is engineered for performance, serving as a critical hub for traffic flowing to and from the West Coast. Its infrastructure provides reliable, low-latency access to both end-users and cloud services.

Carrier Density & Carrier Neutrality Over 24 unique network providers operate within Nevada, as of September 2025. The market features numerous carrier-neutral facilities, giving customers diverse options for redundancy and competitive pricing for transit and transport.

Direct Cloud On-Ramps Over 11 dedicated on-ramps provide direct, low-latency connections to 12 cloud regions, as of September 2025. Major providers with a physical presence include AWS, Google Cloud (GCP), and Microsoft Azure, simplifying hybrid cloud architecture.

Internet Exchange Points (IXPs) While public peering is available, most large-scale interconnection occurs via private connections or through major exchange points in nearby Los Angeles. This ensures high-performance peering with key West Coast networks.

Bare Metal Bare metal solutions are readily available from providers like phoenixNAP, offering dedicated compute for performance-sensitive workloads that require direct hardware access.

Power Analysis

Nevada stands out for its combination of affordable and reliable power, making it a compelling market for high-density deployments and large-scale infrastructure.

Average Cost Of Power The average industrial electricity rate is approximately $0.07/kWh, as of 2022. This rate is among the most competitive in the region and offers a significant cost advantage over California, directly reducing data center operating expenses.

Power Grid Reliability The power grid supporting Nevada's primary data center markets in Las Vegas and Reno is well-engineered. There has been significant investment in redundancy and capacity to meet high-density demands.

Market Access, Business & Tax Climate

Nevada’s business environment is highly favorable for technology infrastructure, offering strategic access to key markets combined with financial benefits that lower the total cost of ownership.

Proximity To Key Business Districts Nevada's data centers provide low-latency connectivity to the massive economic hubs of Southern California and the Bay Area, serving entertainment, tech, and logistics industries.

Regional Market Reach From Nevada, organizations can effectively serve the entire US Southwest, including major markets in Arizona, Utah, and California, reaching tens of millions of end-users.

Tax Advantage For Data Centers Nevada offers significant tax incentives, including partial abatement of both sales and use tax and personal property tax for qualifying new or expanded data centers. These programs substantially lower the capital and operational costs of establishing a presence in the state.

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 risks for data center operations are drought, earthquake, heat wave, and wildfire. While seismic risk is present, it is notably lower than in major California markets, making Nevada a strategic location for disaster recovery and geographic redundancy.