Data Centers in Las Vegas

Las Vegas – Gateway to the Western US

Las Vegas is a strategic data center market for companies requiring low-latency access to the Western United States. Its combination of low power costs, significant tax incentives, and rich connectivity makes it an excellent location for scalable deployments and disaster recovery sites, directly impacting uptime and operational expenses.

Las Vegas: At A Glance

Network & Connectivity Ecosystem

Las Vegas has evolved into a primary interconnection point for the Southwest, offering resilient network access to major markets in California, Arizona, and Utah. The city's infrastructure supports demanding applications from gaming and streaming to enterprise cloud.

Carrier Density & Carrier Neutrality With over 20 network carriers operating in the area as of September 2025, Las Vegas provides excellent options for creating redundant, multi-carrier network architectures. Businesses can connect directly with a wide range of local, national, and international providers in the market's carrier-neutral facilities.

Direct Cloud On-Ramps The market features over 11 dedicated cloud on-ramps providing direct, private access to 12 cloud regions as of September 2025. Major public clouds with a dedicated presence include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure

Internet Exchange Points (IXPs) The Las Vegas Internet Exchange (LVIX) facilitates local peering, allowing businesses to exchange traffic directly and reduce latency for end-users throughout Nevada. Most large-scale peering occurs within data centers or via private connections to hubs in Los Angeles.

Bare Metal Bare metal server options are readily available from multiple providers in Las Vegas. Companies like phoenixNAP offer dedicated server hosting for workloads that require maximum performance and security without the overhead of virtualization.

Power Analysis

Average Cost Of Power The average industrial electricity rate in Las Vegas is approximately $0.07/kWh as of 2022. This competitive pricing significantly lowers the total cost of ownership for high-density compute and large-scale colocation deployments.

Power Grid Reliability The power grid serving the primary data center zones is well-engineered and designed for high availability. Facilities benefit from redundant power feeds and connections to multiple substations, ensuring reliable uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Las Vegas are strategically located to serve the high-bandwidth, low-latency needs of the city's core industries, including the hospitality, gaming, and entertainment sectors centered around the Las Vegas Strip and downtown areas.

Regional Market Reach Las Vegas is an ideal hub for serving end-users across the Southwest. It provides low-latency connectivity to over 40 million people in markets like Los Angeles, San Diego, Phoenix, and Salt Lake City, all reachable in under 10 milliseconds.

Tax Advantage For Data Centers Nevada offers compelling tax incentives for data centers, including partial abatements on both personal property tax and sales and use tax for new or expanding facilities. These programs directly reduce the capital investment required to build and equip a new data center, improving the financial return on the project.

Natural Disaster Risk

Las Vegas has a High natural disaster risk profile, with a FEMA National Risk Index score of 90.55 as of September 2025. While the risk of certain events is low, operators must engineer facilities to withstand specific regional threats.

The primary risks for data center operations include:

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