Data Centers in Bend
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Bend – Resilient Colocation, Tax-Smart Power
Bend offers a compelling alternative to the primary Pacific Northwest data center markets for companies prioritizing business continuity and operational cost savings. Its unique combination of tax incentives, a growing infrastructure ecosystem, and geographic separation from major fault lines makes it an ideal location for disaster recovery and secondary deployments. This market ensures workloads remain secure and cost-effective without sacrificing essential connectivity to the West Coast.
Bend: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity but lacks the carrier density of primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access is in the Portland/Hillsboro area via private network connections. |
| Power Cost | $0.07 - $0.09/kWh | Significant renewable mix (≈62% hydro/wind) helps stabilize industrial power costs. |
| Disaster Risk | High (89.82 NRI Score) | Primary risks are environmental; seismic risk is lower than coastal hubs. |
| Tax Incentives | Yes | A 15-year tax abatement is available for qualifying data center campus developments. |
| Sales Tax | 0.00% Oregon sales tax | No sales tax on hardware or software purchases, as of July 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the market is served by over 3 network carriers across 3 data centers. While smaller than major hubs, Bend provides sufficient neutral connectivity options for most enterprise and disaster recovery needs.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bend as of September 2025. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is achieved through private network extensions to the primary interconnection hub in Hillsboro/Portland.
Internet Exchange Points (IXPs): Public peering is not a major feature of the Bend market. Most network peering is conducted privately or through connections to IXPs in the Portland metro area, ensuring efficient traffic exchange with regional and national networks.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like phoenixNAP offer solutions that can serve edge workloads in the region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Bend typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing is driven by Oregon's power mix, which features approximately 62% renewable sources, primarily hydroelectric. These favorable rates directly reduce a key component of total operational cost.
Power Grid Reliability: The regional power grid is well-engineered and benefits from significant long-term investment in hydroelectric generation and transmission infrastructure. Data centers in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Bend serve the growing local technology, healthcare, and tourism industries. The location provides a strategic edge computing site for Central Oregon, supporting applications that require low latency for the local user base.
Regional Market Reach: Bend is an effective hub for serving users throughout Oregon, Eastern Washington, Idaho, and Northern California. Its location offers a distinct geographic advantage for disaster recovery strategies, providing separation from the seismic and operational risks of Seattle and the Bay Area.
Tax Advantage For Data Centers: Oregon's complete lack of a state sales tax provides a significant financial benefit, eliminating tax on all hardware, software, and equipment purchases. Additionally, the Strategic Investment Program (SIP) can grant a 15-year property tax abatement on large data center projects, drastically lowering long-term operating expenses.
Natural Disaster Risk
Bend has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.82 as of September 2025. The risk is driven almost entirely by environmental factors rather than the major seismic threats present in coastal cities.
Key risks for the region include:
- Wildfire
- Volcanic Activity
- Earthquake
- Winter Weather & Ice Storms
- Heat Wave
Facility operators in the region have engineered their sites to mitigate these specific, well-understood risks.
