Data Centers in Reno

Reno, Nevada, United States – A Strategic Alternative to California

Executive Summary

Reno is the primary option for companies that need a West Coast presence without the high costs and regulatory burdens of California. Its aggressive tax incentives and low power costs create compelling operational savings for enterprises, tech companies, and disaster recovery sites. This market delivers low-latency connectivity to the Bay Area and Pacific Northwest, securing performance while significantly reducing expenses.

Reno, Nevada, United States: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Reno provides access to over 5 network carriers across its 6 colocation facilities, as of September 2025. The market supports a healthy carrier-neutral environment, giving customers choice in providers for redundancy and cost management.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Reno's data centers. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated private network connections to hubs in the San Francisco Bay Area.

Internet Exchange Points (IXPs): Public peering is limited within Reno. Most network peering is conducted privately between carriers or routed through major internet exchanges in San Francisco and other West Coast hubs.

Bare Metal: Bare metal server options are available in the region, providing on-demand compute for performance-sensitive workloads. Providers like phoenixNAP offer solutions that serve businesses operating in Reno and the broader Western US.

Power Analysis

Average Cost Of Power: The average industrial power cost in Reno is approximately $0.07/kWh, as of 2022. This price point is substantially lower than in neighboring California, making it a critical factor for reducing the operational costs of compute-heavy infrastructure. The local energy mix is primarily sourced from natural gas (53%) and renewables (43%).

Power Grid Reliability: The power grid serving the Reno area is well-engineered to support its growing industrial and technology sectors. Data centers are typically located in areas with access to redundant power feeds and substation diversity to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Reno's data centers serve the city's growing technology and logistics industries. More importantly, they function as primary disaster recovery and secondary production sites for companies in Silicon Valley and the San Francisco Bay Area, located just a few milliseconds of latency away.

Regional Market Reach: From Reno, organizations can effectively serve end-users across Northern California, Nevada, and the Pacific Northwest. Its strategic location along major fiber routes makes it an excellent point of presence for reaching Western US markets.

Tax Advantage For Data Centers: Nevada provides significant tax abatements for data centers, reducing both sales tax on equipment purchases and personal property tax. These incentives lower the initial capital expenditure required to build out a deployment and decrease ongoing operational tax burdens.

Natural Disaster Risk

Reno has a high natural disaster risk profile, with a FEMA National Risk Index score of 90.55, as of September 2025. The assessment indicates that facility and infrastructure resilience are critical considerations.

Key risks for data center operations in this area include:

• Earthquake
• Wildfire
• Drought
• Heat Wave
• Riverine Flooding
• Winter Weather