Data Centers in Oregon

Oregon – Power, Connectivity & Tax Efficiency

Oregon is a primary data center destination for hyperscale and enterprise deployments seeking to serve the West Coast of the United States. The state combines abundant, low-cost, renewable-heavy power with significant tax advantages, making it a compelling alternative to pricier California markets for large-scale infrastructure. This combination drives down total cost of ownership while providing reliable, low-latency connectivity to key population centers.

Oregon: At A Glance

Network & Connectivity Ecosystem

Oregon's connectivity is concentrated in the Portland metro area, particularly Hillsboro, which has become a major hub for subsea cables connecting the U.S. and Asia-Pacific.

Carrier Density & Carrier Neutrality: The state features a healthy ecosystem of over 35 network providers as of September 2025. Carrier-neutral facilities in Hillsboro and Portland offer broad interconnection options, preventing vendor lock-in and ensuring competitive pricing.

Direct Cloud On-Ramps: With over 4 dedicated on-ramps providing access to 3 cloud regions as of September 2025, Oregon offers low-latency private connections to major platforms, including AWS and Google Cloud (GCP). This direct access is critical for hybrid cloud architectures, improving security and performance.

Internet Exchange Points (IXPs): The primary public peering point is NWAX (Northwest Access Exchange) in Portland, which facilitates efficient local traffic exchange. Most large-scale peering, however, occurs through private network interconnects (PNIs) within the major data center campuses.

Bare Metal: Bare metal server options are widely available from providers like Hivelocity and phoenixNAP. These services allow businesses to lease dedicated hardware for maximum performance and control.

Power Analysis

Oregon's power profile is a key driver of its data center market, defined by low costs and a high percentage of renewable energy.

Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09 per kWh as of September 2025. This cost advantage, compared to other West Coast markets, delivers substantial operational savings for power-intensive deployments. The grid mix is approximately 62% renewable, dominated by hydroelectric power.

Power Grid Reliability: The power grid, particularly in the data center hubs around Hillsboro, is well-engineered with support from multiple substations. Major colocation providers have invested heavily in redundant power infrastructure to ensure high levels of uptime.

Market Access, Business & Tax Climate

Oregon provides a favorable business environment, especially for capital-intensive industries like data centers.

Proximity To Key Business Districts: Data centers in the Hillsboro area, part of the Silicon Forest, are strategically located near major technology, manufacturing, and research firms. This proximity supports applications requiring minimal latency to local enterprise users and operations.

Regional Market Reach: The state serves as an excellent hub for reaching end-users throughout the Pacific Northwest, Northern California, and across the Pacific via subsea cable systems. Its location offers a balance of proximity and cost-effectiveness for serving these markets.

Tax Advantage For Data Centers: Oregon’s lack of a state sales tax provides an immediate, significant saving on all data center hardware and software purchases. Furthermore, the Strategic Investment Program (SIP) can provide a 15-year property tax abatement, drastically reducing long-term operating expenses for large campus developments.

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. This requires that facilities are engineered to modern seismic standards.

The primary environmental risks for infrastructure in the region are:

• Earthquake
• Volcanic Activity
• Wildfire
• Winter Weather
• Riverine Flooding
• Landslide
• Ice Storm