Data Centers in Nevada

Nevada – Strategic Hub for Western US Connectivity

Nevada is a primary data center market for companies requiring resilient, low-latency infrastructure to serve California and the broader Southwestern US. Its competitive power costs, a favorable tax climate, and robust connectivity make it an essential location for disaster recovery and scalable deployments, directly impacting uptime and operational expenses.

Nevada: At A Glance

Network & Connectivity Ecosystem

Nevada's connectivity is engineered for performance, serving as a key intersection between Salt Lake City, Phoenix, and the major California markets of Los Angeles and Silicon Valley.

Carrier Density & Carrier Neutrality: With over 24 unique network providers active in the state as of September 2025, Nevada offers deep and diverse connectivity. Carrier-neutral facilities in Las Vegas and Reno provide multiple options for redundancy and competitive pricing.

Direct Cloud On-Ramps: The state features over 11 dedicated cloud on-ramps providing direct, private access to 12 cloud regions as of September 2025. Major hyperscalers available include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure

Internet Exchange Points (IXPs): While public peering is limited within the state, most data centers facilitate direct private peering. Major interconnection occurs via private links to hubs in Los Angeles and the San Francisco Bay Area, ensuring low-latency access to the global internet.

Bare Metal: Bare metal server providers are readily available throughout Nevada's colocation facilities. Providers like phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Nevada's power infrastructure is a significant advantage, combining low costs with a reliable grid tailored for high-density computing.

Average Cost Of Power: The average industrial electricity rate is approximately $0.07/kWh as of September 2025, placing Nevada among the most cost-effective states for data center operations. This low cost directly reduces the total cost of ownership for large-scale deployments.

Power Grid Reliability: The power grid, particularly in the primary data center zones of Las Vegas and Reno, is well-engineered and stable. Major facilities are supported by redundant substations and robust transmission infrastructure to ensure high levels of uptime.

Market Access, Business & Tax Climate

Nevada offers a pro-business environment, strategic market access, and significant financial incentives for technology infrastructure investment.

Proximity To Key Business Districts: Data centers in Southern Nevada provide low-latency connectivity to the Las Vegas hospitality, gaming, and convention industries. In Northern Nevada, facilities serve the growing technology, logistics, and manufacturing hub in the Reno-Sparks area.

Regional Market Reach: From its central location, Nevada can effectively serve end-users across California, Arizona, Utah, and the broader Mountain West region with minimal latency. It is an ideal disaster recovery location for businesses with a primary presence on the West Coast.

Tax Advantage For Data Centers: Nevada provides partial abatements on both personal property tax and sales and use tax for qualifying new or expanding data centers. This program significantly lowers the capital and operational expenses associated with large-scale IT infrastructure investments.

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. This rating reflects known environmental factors that are mitigated by modern infrastructure design and operational planning.

The primary risks for consideration are:

• Drought
• Earthquake
• Heatwave
• Wildfire
• Riverine Flooding
• Landslide
• Winter Weather