Data Centers in Provo
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Provo – Cost-Effective Digital Infrastructure
Executive Summary
Provo is a strong contender for companies requiring cost-effective data center space in the Western United States. The market's primary advantages are extremely competitive power pricing and significant tax incentives, making it ideal for high-density computing and disaster recovery sites. This combination directly lowers total cost of ownership for critical IT infrastructure.
Provo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid secondary market with good regional fiber connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires private network extension to providers in Salt Lake City. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Significantly below the national average, attracting high-density workloads. |
| Disaster Risk | High (94.21/100) – as of September 2025 | Primary risks include earthquake, drought, and wildfire. |
| Tax Incentives | Yes | Multiple DC-specific sales and use tax exemptions are available. |
| Sales Tax | 4.85% (Utah state) – as of September 2025 | Additional local taxes may apply. |
Network & Connectivity Ecosystem
Provo provides a capable connectivity environment, serving as a key location within Utah's "Silicon Slopes" technology corridor.
Carrier Density & Carrier Neutrality: The market is served by over 5 unique network providers as of September 2025, with colocation facilities offering carrier-neutral interconnection.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Provo as of September 2025. Access to AWS, Google Cloud, and Microsoft Azure is achieved through private network connections to data centers in the primary regional hub, Salt Lake City.
Internet Exchange Points (IXPs): Public peering is limited within Provo. Most interconnection occurs via private peering within local data centers or through the Salt Lake Internet eXchange (SLIX) in the nearby metro.
Bare Metal: Bare metal server options are available, offering dedicated compute for performance-sensitive applications. Providers like Hivelocity and phoenixNAP can serve the region from nearby data center hubs.
Power Analysis
Utah's power landscape is a key advantage for data center operators in Provo, offering low costs and a reliable grid.
Average Cost Of Power: Industrial electricity rates are approximately $0.07/kWh as of September 2025, among the lowest in the nation. This competitive pricing makes Provo exceptionally attractive for reducing operational expenses on power-intensive hardware. The state's energy mix consists mainly of fossil fuels (82.6%) and a growing share of renewables (15.2%).
Power Grid Reliability: The electrical grid serving the Provo area is well-engineered to support enterprise and industrial loads. Data centers in the region are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Provo's business environment is enhanced by its proximity to a major tech hub and favorable tax laws.
Proximity To Key Business Districts: Data centers in Provo are strategically located to serve the Silicon Slopes, a major technology hub stretching from Provo to Salt Lake City. This proximity provides low-latency connections for a high concentration of tech, finance, and research companies.
Regional Market Reach: The market effectively serves as a key interconnection point for the Intermountain West, offering a strategic location for content delivery and disaster recovery for businesses in Utah, Idaho, Wyoming, and Nevada.
Tax Advantage For Data Centers: Utah offers substantial, long-term tax incentives for data center operators and tenants. These programs provide significant sales and use tax exemptions on equipment purchases and other capital investments, directly improving the financial return on new deployments.
Natural Disaster Risk
Provo has a high natural disaster risk profile, with a FEMA National Risk Index score of 94.21 out of 100 as of September 2025. This score reflects a higher-than-average exposure to multiple hazards compared to other communities nationwide.
The primary risks for data center operations in this area are earthquake, drought, wildfire, and severe winter weather. Other notable risks include potential for landslides, strong winds, and riverine flooding. Operators must ensure facilities are built to modern seismic codes and have comprehensive mitigation strategies for fire and water-related threats.
