Data Centers in Reno

Reno – A Strategic West Coast Alternative

Reno is a compelling data center market for organizations seeking a cost-effective and resilient alternative to California. The combination of aggressive tax incentives, low power costs, and proximity to the Bay Area makes it an ideal location for disaster recovery, secondary infrastructure, and latency-sensitive applications serving the Western United States.

Reno: At A Glance

Network & Connectivity Ecosystem

Reno’s connectivity is robust for a market of its size, providing reliable access to the Western US. While it is not a primary interconnection hub, it is well-connected to major hubs on the West Coast.

• Carrier Density & Carrier Neutrality: Reno is served by over 5 network providers, as of September 2025. The market features carrier-neutral facilities that provide diverse connectivity options.

• Direct Cloud On-Ramps: There are no native public cloud on-ramps within Reno's data centers. Secure, private connections to all major cloud providers are achieved via network extensions to the San Francisco Bay Area.

• Internet Exchange Points (IXPs): Public peering is limited within Reno. Most operators establish private peering arrangements or connect to major internet exchanges in California to optimize traffic routing.

• Bare Metal: Bare metal server options are available in the Reno market from providers like phoenixNAP, offering dedicated compute for performance-intensive workloads.

Power Analysis

Nevada offers one of the most attractive power cost structures in the Western United States, making it a strong financial choice for high-density deployments.

• Average Cost Of Power: Industrial power costs average around $0.07/kWh, as of 2022. This competitive pricing provides a significant operational cost advantage over more expensive coastal markets. The state's energy mix includes 43% renewables and 53% natural gas.

• Power Grid Reliability: The power grid serving the primary data center zones in Reno is well-engineered. Facilities are typically supported by redundant infrastructure to ensure high levels of uptime.

Market Access, Business & Tax Climate

Reno's business environment is defined by its strategic location and highly favorable tax policies designed to attract technology investment.

• Proximity To Key Business Districts: Data centers in the Reno area are strategically located near the Tahoe Reno Industrial Center (TRIC), home to major technology, manufacturing, and logistics companies. This makes it an excellent choice for disaster recovery for businesses in the San Francisco Bay Area, located just a few hours away.

• Regional Market Reach: From Reno, digital services can effectively reach end-users across Northern California, the Pacific Northwest, and the Intermountain West with low latency.

• Tax Advantage For Data Centers: Nevada provides significant tax incentives for data centers. Qualifying projects can receive partial abatements on both personal property taxes and sales and use taxes, directly reducing the capital expenditure for new builds or expansions.

Natural Disaster Risk

Reno has a High natural disaster risk profile, with a FEMA National Risk Index score of 90.55 out of 100, as of September 2025. This score necessitates careful site selection and facility engineering.

The primary risks for the region include:

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