Data Centers in Las Vegas

Las Vegas – Low-Cost Power & West Coast Reach

Las Vegas is a premier data center market for companies seeking a strategic West Coast presence without the high costs and seismic risks of California. The market’s combination of affordable power, strong tax incentives, and robust connectivity makes it an ideal location for disaster recovery, production workloads, and latency-sensitive applications serving the Southwestern United States. This translates directly to lower operating expenses and improved application uptime.

Las Vegas: At A Glance

Network & Connectivity Ecosystem

Las Vegas has evolved into a key interconnection point for the Southwest, offering dense and diverse network options. Its strategic location provides low-latency routes to major markets like Los Angeles, Phoenix, and Salt Lake City.

Carrier Density & Carrier Neutrality The market is served by over 24 unique network providers, as of September 2025. Most colocation facilities operate on a carrier-neutral basis, giving customers a wide choice of fiber, transit, and wavelength services to optimize for cost and performance.

Direct Cloud On-Ramps With over 11 dedicated on-ramps, as of September 2025, Las Vegas provides low-latency access to 12 major cloud regions. Direct connectivity is available to leading platforms, including AWS, Google Cloud (GCP), and Microsoft Azure, enabling reliable and secure hybrid cloud architectures.

Internet Exchange Points (IXPs) The Las Vegas Internet Exchange (LVIX) facilitates local peering, keeping traffic within the metro to reduce latency and transit costs. For broader peering, most providers maintain direct connections to major exchanges in nearby Los Angeles.

Bare Metal Bare metal server options are readily available from multiple providers in Las Vegas. Deployments for high-performance computing or dedicated workloads can be sourced from providers like phoenixNAP and ColoCrossing.

Power Analysis

Power in Las Vegas is both cost-effective and reliable, representing one of the market's most significant competitive advantages.

Average Cost Of Power Industrial power costs average $0.07/kWh, as of 2022, a rate substantially lower than in neighboring California. This cost advantage allows businesses to scale compute-intensive operations more economically, directly reducing total operating expenses.

Power Grid Reliability The power grid supporting Las Vegas's data center corridors is modern and well-engineered. Facilities typically receive redundant power feeds from multiple substations, ensuring high levels of uptime and service continuity.

Market Access, Business & Tax Climate

Las Vegas offers a business-friendly environment with excellent access to the entire Southwestern US market.

Proximity To Key Business Districts Data centers are strategically located to serve the technology-driven gaming and hospitality industries on the Las Vegas Strip. They also support the region's growing logistics, e-commerce, and enterprise sectors.

Regional Market Reach From Las Vegas, organizations can effectively serve end-users in Southern California, Arizona, and Utah. It is an excellent logistical and digital hub for reaching a population of over 40 million people with minimal latency.

Tax Advantage For Data Centers Nevada provides significant tax incentives, including partial abatements on sales tax and personal property taxes for new or expanded data centers. This program directly lowers the capital and operational expenses associated with deploying infrastructure in the state.

Natural Disaster Risk

Las Vegas has a High disaster risk profile, with a FEMA National Risk Index score of 90.55, as of September 2025. While the overall score is high, the market is insulated from many of the hazards common to other major data center hubs, such as hurricanes and significant coastal flooding.

The primary environmental risks for infrastructure in the region are Earthquake, Drought, Heat Wave, and Wildfire. These risks are well understood and can be mitigated through modern data center engineering, resilient infrastructure design, and established operational procedures.