Data Centers in Bend
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Bend, Oregon, USA – Resilient Infrastructure West of the Cascades
Executive Summary
Bend, Oregon, is a strategic secondary market for businesses requiring a resilient West Coast presence outside of major fault zones. The market provides significant tax advantages and access to low-cost, renewable-heavy power, making it an excellent choice for disaster recovery and production workloads that value stability and operational efficiency.
Bend, Oregon, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity with reliable network paths to primary West Coast hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Hillsboro/Portland; PNI/wave options are available. |
| Power Cost | $0.07 - $0.09/kWh | Favorable rates driven by a high percentage of hydroelectric power. |
| Disaster Risk | High (89.82 percentile) – as of September 2025 | Main risks are volcanic activity, wildfire, and severe winter weather. |
| Tax Incentives | Yes | 15-year tax abatement is available for qualifying data center projects. |
| Sales Tax | 0.00% – as of July 2025 | No state sales tax provides significant hardware and software savings. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
The Bend market includes a focused group of over 3 network service providers as of September 2025. The data centers provide carrier-neutral interconnection, offering redundant connectivity paths to Portland, Seattle, and Northern California.
Direct Cloud On-Ramps
As of September 2025, there are no direct public cloud on-ramps within Bend. The nearest access points are in the Portland and Hillsboro area, accessible via dedicated private network interconnects (PNI) or wavelength services from local carriers.
Internet Exchange Points (IXPs)
Public peering is not a central feature of the Bend market. Peering is primarily conducted through private interconnects or via the Northwest Access Exchange (NWAX) in the Portland metropolitan area.
Bare Metal
Bare metal server solutions are available from select providers in the region. These services offer dedicated, non-virtualized compute resources for applications requiring maximum performance and security.
Power Analysis
Average Cost Of Power
Industrial power costs in the Bend area range from approximately $0.07 to $0.09 per kWh, as of September 2025. This pricing structure offers a considerable operational cost advantage compared to more expensive coastal markets.
Power Grid Reliability
The regional power grid is well-engineered, drawing heavily on a generation mix dominated by renewable sources, including about 40% hydroelectric power. This provides stable and reliable energy for demanding data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Bend serve the city's growing technology and software development sector. They also support regional enterprises seeking a lower-cost and lower-risk operating environment than found in primary metropolitan areas.
Regional Market Reach
Bend provides effective low-latency connectivity to the Pacific Northwest, including Portland and Seattle. The location also serves as a strategic disaster recovery site for organizations with primary infrastructure in Northern California.
Tax Advantage For Data Centers
Oregon's complete lack of a state sales tax creates immediate savings on all hardware, software, and equipment purchases. Additionally, the state's Strategic Investment Program (SIP) offers a 15-year property tax abatement, substantially reducing long-term operational expenses for data center developers.
Natural Disaster Risk
Bend has a High natural disaster risk profile, with a National Risk Index score of 89.82 out of 100, as of September 2025. Key environmental risks for data center planning include Volcanic Activity due to proximity to the Cascade Range, Wildfire, Winter Weather, and Ice Storms. While the earthquake risk is lower than in coastal Oregon, it remains a factor for consideration in infrastructure design.
