Data Centers in Bend
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Bend, Oregon – Resilient Infrastructure and Tax Advantages
Bend is an emerging edge data center market ideal for organizations prioritizing operational resilience, low-latency delivery to the Pacific Northwest, and significant tax benefits. Its location offers a compelling alternative to more expensive coastal hubs, providing robust infrastructure without the high operational costs.
Bend, Oregon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, but lacks direct access to major global peering hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in the Portland/Hillsboro area; private network extensions available. |
| Power Cost | $0.07 - $0.09/kWh | Oregon's significant renewable energy mix, especially hydropower, helps stabilize electricity costs. |
| Disaster Risk | High (89.82 percentile) – as of September 2025 | Primary risks are wildfire and volcanic activity, requiring specific infrastructure planning. |
| Tax Incentives | Yes | A 15-year tax abatement program is available for qualifying data center developers. |
| Sales Tax | 0.00% – as of September 2025 | Oregon has no state sales tax, which lowers equipment and operational costs. |
Network & Connectivity Ecosystem
Bend's connectivity is solid for a market of its size, though it relies on regional hubs for major interconnection.
Carrier Density & Carrier Neutrality: The market is served by over 3 network providers as of September 2025. Multiple carrier-neutral facilities ensure competitive network pricing and resiliency.
Direct Cloud On-Ramps: Bend has 0 direct cloud on-ramps, meaning private, high-speed connections to major cloud providers are routed through network providers to hubs in Hillsboro and Portland.
Internet Exchange Points (IXPs): Public peering is not established directly within Bend. Most network traffic is exchanged via private peering arrangements or routed through major IXPs in the Portland metro area.
Bare Metal: Bare metal server options are available, primarily through providers that can deploy custom infrastructure within local colocation facilities. This allows for dedicated performance for demanding applications.
Power Analysis
Oregon's power landscape is a key advantage for data center operations in Bend.
Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09 per kWh as of September 2025. This cost-effectiveness, driven by a high percentage of hydropower, directly reduces total operational expenditures.
Power Grid Reliability: The regional power grid is well-engineered, benefiting from significant investment in hydroelectric and renewable energy sources. Data centers in the area are supported by reliable utility infrastructure designed to handle industrial loads.
Market Access, Business & Tax Climate
Bend offers a favorable business environment combined with strategic access to the Western United States.
Proximity To Key Business Districts: Data centers in Bend serve the city's growing technology and professional services sectors. The location provides low-latency connectivity for local businesses and serves as a disaster recovery site for companies in Portland and Northern California.
Regional Market Reach: Bend is well-positioned to serve end-users throughout Oregon, Washington, and Northern California. Its location offers a strategic balance point between major West Coast markets.
Tax Advantage For Data Centers: Oregon’s complete lack of sales tax provides a substantial financial benefit, eliminating tax on all hardware, software, and equipment purchases. The state's Strategic Investment Program (SIP) also offers long-term property tax abatements, creating one of the most attractive tax climates for data centers in the nation.
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 profile is driven primarily by environmental factors common to the region. Key hazards include Wildfire, Volcanic Activity, Earthquake, and Winter Weather. Other notable risks include Heatwave, Ice Storm, Landslide, and Riverine Flooding. Operators must ensure facilities are engineered to mitigate these specific threats through fire suppression systems, seismic bracing, and resilient power and cooling designs.
