Data Centers in Oregon

Oregon, United States – Power, Connectivity & Tax Advantages

Executive Summary

Oregon is a premier data center market for enterprises that require cost-effective power, excellent connectivity to Asia-Pacific, and significant tax advantages. The state's "Silicon Forest" combines a mature technology ecosystem with some of the most favorable tax incentives in the nation, directly reducing capital and operational expenditures. This makes Oregon a strategic alternative to Northern California for both primary workloads and disaster recovery.

Oregon, United States: At A Glance

Network & Connectivity Ecosystem

Oregon, particularly the Hillsboro area outside Portland, has a dense and diverse connectivity ecosystem. It serves as a major network gateway for traffic between the U.S. and Asia.

• Carrier Density & Carrier Neutrality: Over 35 carriers operate in the region, as of September 2025. The market is dominated by carrier-neutral facilities, offering extensive choice and competitive pricing for transit and transport.
• Direct Cloud On-Ramps: The market has over 4 dedicated cloud on-ramps, enabling low-latency private access to 3 major cloud availability regions, as of September 2025. Providers with a physical presence include AWS and Google Cloud (GCP).
• Internet Exchange Points (IXPs): The Northwest Access Exchange (NWAX) is the primary public peering fabric, improving traffic exchange and reducing latency between regional networks. Most large-scale peering is handled privately within key interconnection facilities.
• Bare Metal: Bare metal server options are readily available from providers in the Portland metro area. Hivelocity and phoenixNAP are among the providers offering dedicated compute in the region.

Power Analysis

Oregon's power profile is a key reason for its popularity as a data center destination.

• Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09 per kWh, as of September 2025. This cost advantage, driven by abundant hydroelectric power, significantly lowers total operational costs for high-density deployments.
• Power Grid Reliability: The power grid, particularly in the data center hub of Hillsboro, is well-engineered with support from multiple substations. The grid's heavy reliance on stable, large-scale hydroelectric generation contributes to its overall reliability.

Market Access, Business & Tax Climate

Oregon provides a compelling business case built on proximity to tech hubs and one of the best tax structures for data centers in the United States.

• Proximity To Key Business Districts: Data centers are concentrated in Hillsboro, the heart of Oregon's "Silicon Forest." This places them adjacent to major semiconductor fabrication plants and the campuses of global technology companies.
• Regional Market Reach: The state is an ideal location for serving the entire Pacific Northwest, including major markets like Seattle and Portland. It also functions as a primary disaster recovery site for businesses in Silicon Valley and Los Angeles.
• Tax Advantage For Data Centers: Oregon has no state sales tax, providing immediate savings on all data center hardware and infrastructure purchases. Additionally, enterprise zone programs offer significant, long-term property tax abatements on large-scale data center investments.

Natural Disaster Risk

Oregon has a High risk profile for natural disasters, with a FEMA National Risk Index score of 89.82 (percentile), as of September 2025. This score is consistent with its location in a seismically active region.

Key risks for the region include:

• Earthquake
• Volcanic Activity
• Wildfire
• Winter Weather
• Ice Storms
• Riverine Flooding