Data Centers in Eugene
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Eugene, Oregon – A Green & Tax-Free Hub
Executive Summary
Eugene is a strategic secondary data center market for organizations prioritizing operational cost savings and sustainability. Its primary advantages are Oregon's 0% sales tax and a power grid rich in low-cost renewables. This market is an excellent choice for disaster recovery sites or for workloads that do not require the dense connectivity of primary hubs like Hillsboro.
Eugene, Oregon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though less dense than primary Pacific Northwest hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connections require network extensions to data centers in Portland or Hillsboro. |
| Power Cost | $0.07 - $0.09/kWh | Competitive rates driven by a high percentage of renewable hydropower. |
| Disaster Risk | High (89.82 NRI Score) | High rating driven by earthquake and volcanic risk common to the region. |
| Tax Incentives | Yes | DC-specific programs offer long-term tax abatements for campus developments. |
| Sales Tax | 0.00% – as of Midyear 2025 | Significant TCO advantage for hardware purchases and technology refreshes. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
Carrier options in Eugene are limited, with just over 2 providers available in the market as of September 2025. This makes the area suitable for specific enterprise needs rather than for building a dense, carrier-neutral interconnection strategy.
Direct Cloud On-Ramps
As of September 2025, there are no public cloud on-ramps located directly within Eugene. Secure, private access to providers like AWS, Google Cloud (GCP), and Microsoft Azure requires establishing a private network connection to facilities in the primary regional hubs of Hillsboro or Portland.
Internet Exchange Points (IXPs)
Public peering is not a feature of the Eugene market. Most network interconnection is handled privately or occurs within the major carrier hotels and data center ecosystems in Portland, which hosts the Northwest Access Exchange (NWAX).
Bare Metal
Bare metal server capacity is available in the region. Providers can service Eugene deployments, often from larger hubs in the Pacific Northwest. Options from providers like Hivelocity can be configured for delivery into local data centers.
Power Analysis
Average Cost Of Power
Industrial power costs in Eugene are competitive, estimated between $0.07 and $0.09/kWh as of September 2025. This attractive pricing, a direct result of Oregon's large-scale hydroelectric power generation, significantly lowers operational expenses for high-density computing. The grid mix is approximately 62% renewable.
Power Grid Reliability
The power grid serving Eugene is reliable and well-engineered. It benefits from statewide infrastructure investments designed to support Oregon's growing technology and manufacturing sectors, ensuring stable power for mission-critical facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers in Eugene primarily serve local government, University of Oregon research initiatives, and regional enterprise workloads. The market offers a cost-effective operational base away from the higher real estate and connectivity costs of the Portland metro area.
Regional Market Reach
From a latency perspective, Eugene effectively serves Southern Oregon and acts as a logical disaster recovery site for businesses with a primary footprint in Portland, Seattle, or even Northern California.
Tax Advantage For Data Centers
Oregon's complete lack of a state sales tax provides a powerful financial incentive, eliminating millions of dollars in tax on server, storage, and network hardware purchases. The state's Strategic Investment Program (SIP) can also deliver long-term property tax abatements for qualifying new data center developments.
Natural Disaster Risk
Eugene has a High natural disaster risk profile, with a Federal Emergency Management Agency (FEMA) National Risk Index score of 89.82 out of 100 as of September 2025. The primary risks reflect its Pacific Northwest location and include Earthquake, Volcanic Activity, Wildfire, and Ice Storms. Other notable risks are heat waves, riverine flooding, and landslides. Facility selection and construction must account for these regional seismic and weather-related factors.
