Data Centers in Oregon

Oregon – Power, Connectivity & Tax Advantages

Oregon is a primary data center market for enterprises seeking low-latency connectivity to the US West Coast and Asia-Pacific, without the high costs of California. The state’s combination of 0% sales tax, abundant renewable energy, and a dense network ecosystem provides a compelling financial and operational advantage for high-performance computing and cloud deployments.

Oregon: At A Glance

Network & Connectivity Ecosystem

Oregon, particularly the Hillsboro area, has become a critical interconnection hub for the Pacific Northwest. Its rich connectivity is a key reason for its growth as a data center destination.

Carrier Density & Carrier Neutrality The state features a competitive environment with over 35 unique network providers operating within its data centers as of September 2025. This density ensures resilient, multi-carrier strategies are simple to implement in carrier-neutral facilities.

Direct Cloud On-Ramps With over 4 cloud on-ramps and access to 3 distinct cloud regions as of September 2025, Oregon provides excellent private access to major platforms. Direct connectivity is available to AWS and Google Cloud (GCP), enabling secure, high-throughput hybrid cloud architectures.

Internet Exchange Points (IXPs) The Northwest Access Exchange (NWAX) in Portland is the primary peering point for the region. It allows networks to exchange traffic directly, reducing latency and improving performance for end-users throughout the Pacific Northwest.

Bare Metal Bare metal server options are readily available from multiple providers in Oregon. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Oregon's power profile is a significant advantage, characterized by low costs and a high percentage of renewable sources.

Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. These competitive prices directly reduce a data center's total cost of ownership. The grid mix is approximately 62% renewable, dominated by hydroelectric power, making it an excellent choice for sustainability goals.

Power Grid Reliability The power grid, especially in the data center-heavy corridors around Hillsboro, is well-engineered with redundant supply from multiple substations. The state's reliance on a stable hydroelectric backbone contributes to its overall reliability.

Market Access, Business & Tax Climate

Oregon provides a favorable business environment that extends beyond its technical infrastructure.

Proximity To Key Business Districts Data centers are concentrated in the "Silicon Forest," a tech hub stretching from Portland to Hillsboro. This proximity provides low-latency connections for a dense ecosystem of semiconductor manufacturers, software companies, and creative firms.

Regional Market Reach Oregon is an ideal location for serving the entire US West Coast, from Seattle down to Northern California. It also functions as a key North American gateway for trans-pacific traffic, offering low-latency routes to markets in Asia.

Tax Advantage For Data Centers The state's Strategic Investment Program (SIP) offers a 15-year property tax abatement on large-scale data center projects. This, combined with a complete lack of state sales tax, creates one of the most attractive financial environments for data center investment in the United States.

Natural Disaster Risk

Oregon has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.82 as of September 2025. Infrastructure planning and site selection must account for these factors.

The primary risks for data center operations include Earthquake, Wildfire, Volcanic Activity, and Winter Weather. Other notable hazards are heat waves, landslides, and riverine flooding. While the overall risk score is high due to seismic potential, modern data centers in the region are built to stringent seismic codes to mitigate this specific threat.