Data Centers in Provo
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Provo – Cost-Effective Tier II Data Center Market
Provo, part of the Silicon Slopes tech corridor, offers a compelling data center market for businesses seeking low power costs and favorable tax incentives. It serves as a strong secondary location for disaster recovery or for companies targeting the Intermountain West region without the higher costs of primary coastal markets.
Provo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though lacking direct cloud on-ramps. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via the nearby Salt Lake City market through private network extensions. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Significantly below the national average, a primary driver for deployments. |
| Disaster Risk | High (94.21) – as of September 2025 | Elevated risk profile requires careful facility selection and disaster recovery planning. |
| Tax Incentives | Yes | Multiple state-level sales and use tax exemptions are available for data centers. |
| Sales Tax | 4.85% (Utah) – as of September 2025 | This state-level rate is competitive and can be offset by DC-specific incentives. |
Network & Connectivity Ecosystem
Provo benefits from its proximity to the larger Salt Lake City interconnection market, providing access to a capable network ecosystem.
Carrier Density & Carrier Neutrality: The market contains over 6 unique network providers as of September 2025. Carrier-neutral facilities offer access to a blend of regional and national carriers, suitable for most enterprise and disaster recovery needs.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated circuits to hubs in Salt Lake City.
Internet Exchange Points (IXPs): Public peering is not established directly within Provo. Most peering occurs privately within data centers or is routed through the Salt Lake Internet Exchange (SLIX) in nearby Salt Lake City.
Bare Metal: Bare metal server options are available from providers in the broader Salt Lake City metropolitan area. These services are offered by providers such as phoenixNAP, providing on-demand compute for workloads that are not suited for virtualization.
Power Analysis
Utah's power landscape is a key advantage for data center operators in Provo, defined by low costs and a reliable grid.
Average Cost Of Power: Industrial power costs are approximately $0.07/kWh as of September 2025, which is among the lowest in the nation. This significant cost advantage directly reduces the total cost of ownership for high-density deployments. The state's power mix is primarily generated from natural gas and coal, with a growing solar component.
Power Grid Reliability: The electrical grid serving the Provo and greater Utah County area is well-engineered to support the region's technology sector. Data centers are typically fed by redundant power infrastructure, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Provo's business environment is enhanced by its position within Utah's thriving Silicon Slopes, offering strategic access and significant financial incentives.
Proximity To Key Business Districts: Data centers in Provo serve the dense cluster of technology, software development, and university research entities between Provo and Salt Lake City. This proximity allows for low-latency connections essential for product development and R&D activities.
Regional Market Reach: The market is well-positioned to serve businesses across Utah, Idaho, Wyoming, and Nevada. It provides an effective disaster recovery location for operations in more expensive or higher-risk markets like Northern California.
Tax Advantage For Data Centers: Utah provides substantial sales and use tax exemptions for qualifying enterprise data centers. These incentives reduce the upfront capital expenditure on servers, networking gear, and other critical infrastructure, improving the financial case for building or colocating in the state.
Natural Disaster Risk
Provo has a High natural disaster risk profile, with a FEMA National Risk Index score of 94.21 as of September 2025. This requires that infrastructure decisions prioritize resilience and geographic redundancy.
The primary risks for the region include earthquake, wildfire, and severe winter weather, including avalanches in the surrounding Wasatch mountain range. Other material risks are drought, strong wind, and potential for riverine flooding. Facility selection and disaster recovery plans must account for these specific environmental threats.
