Data Centers in Reno

Reno – Strategic Low Latency Gateway to the West

Executive Summary

Reno serves as the premier disaster recovery and overflow market for Silicon Valley, offering significantly lower operational costs without sacrificing performance. It provides a strategic balance of aggressive tax incentives and geographic proximity to California to ensure high availability for data heavy enterprises.

Reno: At A Glance

Network & Connectivity Ecosystem

Reno is a specialized connectivity hub that leverages its location to bridge the gap between the Pacific coast and the inland mountain West.

Carrier Density & Carrier Neutrality: Carrier count: over 5, as of September 2025. The market maintains a healthy mix of regional fiber providers and national backbones, ensuring competitive pricing for transport.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions, as of September 2025. While no direct on-ramps sit within the city limits, local providers offer private, high speed extensions to the major cloud clusters in Silicon Valley.

Internet Exchange Points (IXPs): The Tahoe–Reno IX facilitates local traffic exchange, reducing reliance on distant hubs for regional data transit.

Bare Metal: Dedicated hardware is readily available through providers like Hivelocity and phoenixNAP, allowing for rapid scaling of compute resources without long term facility leases.

Power Analysis

Reno offers a stable and cost effective power environment compared to its coastal neighbors.

Average Cost Of Power: Industrial electricity is priced at $0.07/kWh, as of September 2025. This rate allows for massive operational savings for high density deployments that would be cost prohibitive in California.

Power Grid Reliability: The local grid is well-engineered with multi-substation support to serve the massive industrial parks east of the city. It handles the high demand of large scale server farms with consistent, redundant delivery.

Market Access, Business & Tax Climate

Nevada has positioned itself as a business friendly alternative to the high tax environments of the West Coast.

Proximity To Key Business Districts: Data centers are concentrated near the Tahoe–Reno Industrial Center, which houses major tech manufacturing and logistics giants. This proximity allows for ultra low latency connections between corporate operations and their digital infrastructure.

Regional Market Reach: From Reno, companies can serve the entire Western United States, including San Francisco, Sacramento, and Salt Lake City, with sub-10ms latency.

Tax Advantage For Data Centers: The state offers significant financial relief through partial abatements of personal property and sales taxes for new or expanding facilities. This incentive structure drastically reduces the total cost of ownership for long term infrastructure investments.

Natural Disaster Risk

The regional risk profile is High (90.55 score), as of September 2025. Operators in this market prioritize resilient construction and site selection to mitigate these specific environmental factors.

Wildfire: A significant regional concern that requires advanced air filtration and site clearance.

Earthquake: Facilities are built to stringent seismic standards given the proximity to active fault lines.

Riverine Flooding: Risk is concentrated near the Truckee River corridor; most major data centers are located on higher ground.

Winter Weather: Heavy snowfall can impact physical access, though most mission-critical sites have onsite emergency provisions.

Heat Wave: High desert temperatures require efficient cooling systems, though low humidity aids in evaporative cooling techniques.