Data Centers in Eugene
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Eugene – Resilient Power for Pacific Northwest Workloads
Eugene, Oregon offers a specialized environment for data center operations focused on cost control and sustainability. While not a primary interconnection hub, the market appeals to organizations seeking a disaster recovery site or a location for workloads that benefit from Oregon's 0% sales tax and high percentage of renewable energy. Its value lies in operational efficiency rather than network density.
Eugene: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but lacks major carrier density. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in the Portland/Hillsboro area via private network extension. |
| Power Cost | $0.08 - $0.10/kWh, as of September 2025 | Competitive pricing driven by a high mix of renewables. |
| Disaster Risk | High (89.82), as of September 2025 | Primary risks include earthquake, wildfire, and volcanic activity. |
| Tax Incentives | Yes | DC-specific programs offer long-term property tax abatements for large projects. |
| Sales Tax | 0.00% Sales Tax, as of September 2025 | Significant operational savings on hardware and software purchases. |
Network & Connectivity Ecosystem
Eugene is a tertiary market, providing essential connectivity for local and regional businesses rather than serving as a major network hub.
Carrier Density & Carrier Neutrality The market is served by at least 2 providers, with 4 data centers available as of September 2025. This provides sufficient network diversity for regional enterprise needs and disaster recovery, but not the deep carrier ecosystem found in primary markets like Hillsboro or Seattle.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Eugene as of September 2025. Organizations requiring dedicated cloud access must establish private network connections to providers in the Portland and Hillsboro data center hubs, which host numerous on-ramps.
Internet Exchange Points (IXPs) Eugene does not host a public internet exchange. Peering is typically handled privately between carriers or routed through major exchanges in Portland, such as NWAX, or Seattle.
Bare Metal Bare metal server options are available, typically through providers that serve the broader Pacific Northwest region. Companies like phoenixNAP and Hivelocity can provision dedicated servers, offering an alternative to traditional colocation for workloads that demand physical hardware.
Power Analysis
Oregon's power profile is a significant advantage, characterized by competitive costs and a strong commitment to renewable energy.
Average Cost Of Power Industrial electricity rates in the Eugene area typically range from $0.08 to $0.10 per kWh as of September 2025. This competitive pricing can substantially lower the total cost of ownership for power-intensive deployments. The state's grid is supplied by approximately 62% renewable sources, primarily hydroelectric power.
Power Grid Reliability The regional power grid is well-engineered, benefiting from a strong base of hydroelectric generation. Data centers in the area are supported by reliable utility infrastructure designed to serve commercial and industrial needs.
Market Access, Business & Tax Climate
Eugene's business climate is defined by favorable tax policies and its role as a regional economic center.
Proximity To Key Business Districts Data centers in Eugene serve the city's local enterprises, the University of Oregon, and the surrounding Lane County region. The market provides low-latency connectivity for businesses throughout the Southern Willamette Valley.
Regional Market Reach From Eugene, digital services can effectively reach across Southern Oregon and serve as a secondary disaster recovery location for businesses in Portland or Northern California.
Tax Advantage For Data Centers The state's Strategic Investment Program (SIP) can provide a 15-year property tax abatement for significant data center projects. This, combined with a 0% state sales tax on equipment, creates a highly favorable financial environment for large-scale hardware deployments.
Natural Disaster Risk
Eugene has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.82 as of September 2025. While the score is high, it reflects a range of potential West Coast hazards that can be mitigated with modern facility engineering.
The primary risks for infrastructure are Earthquake, Wildfire, Volcanic Activity, and Riverine Flooding. Other notable risks include severe winter weather, ice storms, and heat waves.
