Data Centers in Eugene
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Eugene – A Strategic Oregon Edge Location
Executive Summary
Eugene is a strategic secondary market for organizations requiring a Pacific Northwest presence with a lower total cost of ownership than primary hubs like Hillsboro. The market’s zero sales tax and attractive power costs provide a compelling financial advantage for disaster recovery sites, edge computing deployments, and regional content delivery. This combination helps protect capital investment while ensuring low-latency service for users in Oregon and Northern California.
Eugene: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, not a primary international peering hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private extension to the primary Portland/Hillsboro ecosystem. |
| Power Cost | $0.07 – $0.09/kWh (est.) | Driven by a high percentage of low-cost hydroelectric power. |
| Disaster Risk | High (89.8th percentile) – as of September 2025 | Significant seismic and wildfire risk requires careful site selection and facility engineering. |
| Tax Incentives | Yes | Oregon's SIP program offers long-term property tax abatement for data center developers. |
| Sales Tax | 0.00% – as of July 2025 | No state sales tax provides significant savings on all hardware purchases. |
Network & Connectivity Ecosystem
Eugene offers a focused but capable connectivity environment, ideal for edge and regional workloads. The ecosystem provides reliable access to the broader Pacific Northwest network fabric.
Carrier Density & Carrier Neutrality The market includes 4 data centers with access to over 2 network providers, as of September 2025. Facilities offer a carrier-neutral environment, providing access to regional and national backbones for network redundancy.
Direct Cloud On-Ramps There are no direct cloud on-ramps located within Eugene, as of September 2025. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, is achieved through dedicated network connections to the primary interconnection hub in Hillsboro.
Internet Exchange Points (IXPs) Public peering is concentrated at the Northwest Access Exchange (NWAX) in the Portland area. Most peering from Eugene is managed via private network interconnects or transit through providers with a presence at NWAX.
Bare Metal Bare metal server options are available, often provisioned from providers located in the larger Portland market. Services from vendors like Hivelocity can be deployed to serve workloads originating from Eugene facilities.
Power Analysis
Average Cost Of Power Industrial power costs are estimated between $0.07 and $0.09/kWh, as of September 2025, positioning Oregon as one of the most affordable states for power in the US. This competitive pricing structure significantly lowers total operating costs for compute-intensive workloads. The grid mix is dominated by renewables, with approximately 62% coming from sources like hydropower and wind.
Power Grid Reliability The regional power grid is well-engineered and benefits from a high concentration of renewable energy, primarily stable hydroelectric generation. Data centers in the area are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Eugene serve the city's core economic drivers, including the University of Oregon, local government, and a growing technology sector. This proximity enables low-latency support for research, public services, and regional enterprise applications.
Regional Market Reach Eugene provides effective low-latency connectivity to Southern and Central Oregon as well as parts of Northern California. It also serves as an excellent disaster recovery location for businesses with a primary footprint in the Portland or Seattle metropolitan areas.
Tax Advantage For Data Centers Oregon's complete lack of sales tax provides an immediate and substantial cost reduction on all data center hardware and software purchases. Furthermore, the state's Strategic Investment Program (SIP) can provide a 15-year property tax abatement on large-scale data center projects, drastically improving the long-term financial model.
Natural Disaster Risk
Eugene has a High natural disaster risk profile, with a National Risk Index score of 89.8 out of 100, as of September 2025. While the overall score is elevated, risks are specific and can be mitigated through proper facility engineering and site selection.
The primary risks for data center operations in the region are Earthquake, Wildfire, Volcanic Activity, Ice Storms, and Riverine Flooding. The seismic risk is tied to the Cascadia Subduction Zone, making modern, purpose-built facilities a critical requirement for infrastructure resilience.
