Data Centers in Bend
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Bend – Strategic Edge Infrastructure for Pacific Northwest Resilience
Executive Summary
Bend serves as a critical failover and edge computing location for enterprises looking to avoid the high costs and congestion of primary coastal markets. It offers a unique balance of tax-free hardware procurement and low-cost renewable power, making it a strong choice for disaster recovery and regional workloads.
Bend: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable fiber backhaul with solid regional performance. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud on-ramp hub is Portland. |
| Power Cost | $0.07/kWh, as of September 2025 | Competitive rates driven by a strong hydro and wind mix. |
| Disaster Risk | High (89.8/100), as of September 2025 | Regional risks require resilient facility design and site selection. |
| Tax Incentives | Yes | SIP program offers a 15-year tax abatement for developers. |
| Sales Tax | Oregon sales tax 0.00%, as of September 2025 | Zero sales tax on all hardware and critical infrastructure. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5, as of September 2025. The market provides a mix of regional fiber specialists and national backbone providers, ensuring reliable routing for distributed workloads.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While no native on-ramps exist in the metro, enterprises use private transport or software-defined fabrics to reach AWS and Google Cloud (GCP) nodes in Portland.
Internet Exchange Points (IXPs): Public peering is limited locally as of September 2025. Most traffic exchange happens through private interconnects or via major regional exchanges in Portland.
Bare Metal: High-performance hardware is available through specialized regional providers as of September 2025. National options such as phoenixNAP and Hivelocity can support localized compute requirements in this region.
Power Analysis
Average Cost Of Power: Industrial electricity is approximately $0.07/kWh, as of September 2025. The generation mix is roughly 62% renewables, dominated by hydro and wind, providing a stable and sustainable profile that compares favorably to national averages.
Power Grid Reliability: The local grid is supported by a well-engineered network of substations and transmission lines. Reliability is high, with infrastructure built to handle the region’s varied weather patterns and potential geological events.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Facilities are centrally located near the Old Mill District and emerging industrial parks. This ensures that local tech, healthcare, and professional service firms maintain low-latency access to their data and applications.
Regional Market Reach: As the primary hub for Central Oregon, Bend serves the entire high-desert region. It also acts as a secure secondary site for companies headquartered in the Portland Silicon Forest area.
Tax Advantage For Data Centers: Oregon’s lack of sales tax on capital equipment significantly reduces upfront infrastructure costs. The Strategic Investment Program provides long-term property tax abatements for large-scale developments, improving long-term fiscal predictability.
Natural Disaster Risk
The regional risk profile is categorized as High (89.8/100), as of September 2025. While protected from coastal threats, the area faces specific environmental challenges that necessitate purpose-built facility designs.
- Wildfire: Significant risk due to the surrounding forest terrain and dry climate.
- Earthquake: Potential for seismic activity related to regional fault lines.
- Volcano: Proximity to the Cascade Range introduces indirect risks from ashfall.
- Winter Weather: Occasional ice storms and heavy snowfall can impact site accessibility.
- River Flood: Localized risks exist near specific water basins.
- Heat Wave: Rising summer temperatures require efficient cooling infrastructure.
Other hazards such as landslides and high winds are present but considered less impactful to primary data center operations as of September 2025.