Data Centers in Las Vegas

Las Vegas – Cost-Effective West Coast Connectivity

Las Vegas is a primary disaster recovery and secondary compute location for businesses in more expensive, high-risk West Coast markets like California. The market provides an exceptional balance of low-latency connectivity to major population centers, competitive power costs, and a favorable tax climate. This combination drives down total cost of ownership for production and backup infrastructure.

Las Vegas: At A Glance

Network & Connectivity Ecosystem

Las Vegas offers a strong connectivity profile, serving as a key network intersection for traffic moving between Los Angeles, Phoenix, Salt Lake City, and the Bay Area.

Carrier Density & Carrier Neutrality The Las Vegas market is served by over 24 network carriers, as of September 2025. Most colocation facilities operate on a carrier-neutral basis, providing extensive choice for local access, long-haul transport, and redundant network design.

Direct Cloud On-Ramps With over 11 dedicated cloud on-ramps, Las Vegas enables low-latency, private access to major hyperscale clouds, including AWS, Google Cloud (GCP), and Microsoft Azure. This supports hybrid cloud architectures for the 12 cloud regions reachable from the market.

Internet Exchange Points (IXPs) While public peering is limited within Las Vegas itself, most interconnection occurs through private peering within carrier-neutral data centers. For public peering, network traffic typically routes to major exchange points in nearby Los Angeles.

Bare Metal Bare metal server capacity is readily available from multiple providers. Companies like phoenixNAP and Hivelocity offer dedicated server solutions for workloads that require direct hardware access and consistent performance.

Power Analysis

Las Vegas presents a compelling advantage in power cost and reliability, particularly for high-density compute deployments.

Average Cost Of Power Industrial power costs average $0.07/kWh, as of 2022. This competitive rate offers substantial operational savings compared to other West Coast markets, directly impacting the budget for power-intensive applications.

Power Grid Reliability The power grid serving the primary data center corridors is well-engineered and stable. Facilities are typically supported by redundant substations and robust distribution networks designed to meet the uptime requirements of enterprise and gaming clients.

Market Access, Business & Tax Climate

The market's business environment is structured to attract technology investment through strategic location and financial incentives.

Proximity To Key Business Districts Data centers in Las Vegas are strategically located to serve the high-bandwidth needs of the local entertainment, hospitality, and convention industries. More importantly, they offer low single-digit millisecond latency to the massive Southern California market.

Regional Market Reach From Las Vegas, organizations can effectively serve end-users across the American Southwest, including Southern California, Arizona, and Utah. Its position makes it a logical and cost-effective disaster recovery site for businesses operating in Los Angeles.

Tax Advantage For Data Centers Nevada offers specific tax incentives that significantly reduce the cost of building and equipping a data center. These programs provide partial abatements on both sales and use tax and personal property tax, lowering upfront capital expenditures and ongoing operational costs.

Natural Disaster Risk

Las Vegas has a High natural disaster risk profile, with a Federal Emergency Management Agency (FEMA) score of 90.55, as of September 2025. The score reflects environmental and geological factors inherent to the region.

Key risks include:

• Drought
• Extreme Heat Waves
• Earthquake
• Wildfire
• Riverine Flooding
• Winter Weather

While the overall risk score is high, facilities are engineered to mitigate these factors. The risk profile makes it a common disaster recovery alternative to the higher seismic risk zones in California.