Data Centers in Las Vegas

Las Vegas – West Coast Reach at a Lower Cost

Executive Summary

Las Vegas is a primary colocation market for businesses requiring robust connectivity to West Coast hubs like Los Angeles and Silicon Valley without the high costs and seismic risks of California. Its favorable tax climate, low power costs, and growing network ecosystem make it an ideal location for disaster recovery, edge computing, and content delivery, directly impacting uptime and operational expenses.

Las Vegas: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Las Vegas market is served by over 24 unique network providers (as of September 2025). Most of the 31 colocation facilities are carrier-neutral, providing a competitive landscape for interconnection, transit, and transport services to key markets like Los Angeles, Phoenix, and the Bay Area.

Direct Cloud On-Ramps: With over 11 dedicated cloud on-ramps connecting to 12 distinct cloud regions, Las Vegas offers excellent hybrid cloud infrastructure (as of September 2025). Private, low-latency connections are available to major hyperscalers, including:

• AWS
• Google Cloud (GCP)
• Microsoft Azure

Internet Exchange Points (IXPs): While local peering is available for traffic exchange within the metro, most large-scale peering occurs via private interconnects or through the major internet exchanges in Los Angeles. This ensures deep, resilient connectivity to the global internet backbone.

Bare Metal: Bare metal server options are readily available from multiple providers in Las Vegas, offering dedicated compute for performance-sensitive workloads. Providers such as phoenixNAP and ColoCrossing offer solutions in the region.

Power Analysis

Average Cost Of Power: The average industrial electricity cost in Las Vegas is approximately $0.07/kWh (as of 2022). This competitive rate provides significant operational savings compared to more expensive power markets in neighboring California. The grid's power mix is dominated by natural gas (53%) and a growing share of renewables (43%).

Power Grid Reliability: The regional power grid is well-engineered to support the high-demand loads of the desert climate and the 24/7 operations of the massive hospitality industry. Major data center corridors benefit from redundant power feeds and multi-substation support, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Las Vegas are strategically located to serve the city's world-class hospitality and entertainment industries, as well as a growing ecosystem of tech startups and logistics companies. This proximity enables low-latency applications critical for gaming, event production, and real-time data processing.

Regional Market Reach: Las Vegas is a strategic hub for serving the entire Southwestern United States. It offers low-latency network reach to over 40 million people in Southern California, Arizona, and Utah, making it a powerful location for content delivery, e-commerce, and disaster recovery infrastructure.

Tax Advantage For Data Centers: Nevada's tax climate is one of the most favorable in the nation for data centers. The state offers partial abatements on sales and use tax as well as personal property tax for qualifying new or expanded facilities. These incentives directly lower the significant upfront capital investment and ongoing costs associated with large-scale digital infrastructure.

Natural Disaster Risk

The Las Vegas area has a High natural disaster risk profile, with a National Risk Index score of 90.55 out of 100 (as of September 2025). The primary environmental risks facing data center operations are drought, heatwave, earthquake, and wildfire. While the region's seismic risk is considerably lower than in coastal California, it remains a key consideration for infrastructure design and resiliency planning.