Data Centers in Salt Lake City

Salt Lake City – Resilient Hub for Western US Growth

Salt Lake City is a primary data center market for organizations requiring a resilient, low-latency presence in the Western United States, avoiding the higher costs and disaster risks of coastal hubs. Its favorable power costs, robust connectivity, and significant tax incentives make it an ideal location for disaster recovery, edge computing, and scalable enterprise deployments.

Salt Lake City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Salt Lake City market provides access to over 15 network carriers as of September 2025. The ecosystem is supported by numerous carrier-neutral facilities, offering diverse choices for network redundancy and competitive pricing.

Direct Cloud On-Ramps: The market features over 1 direct cloud on-ramp, enabling low-latency hybrid cloud architectures. As of September 2025, direct access is available to Google Cloud (GCP). Private connections to other major cloud providers are available via network extensions from nearby hubs like Denver or Las Vegas.

Internet Exchange Points (IXPs): The Salt Lake Internet Exchange (SLIX) is the primary IXP, facilitating efficient local traffic peering and reducing reliance on long-haul transit. Most large-scale peering is handled through private network interconnects within the major colocation facilities.

Bare Metal: Bare metal server options are readily available from providers in the area. For example, phoenixNAP offers dedicated server solutions from its Salt Lake City data center.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Salt Lake City average approximately $0.07/kWh as of September 2025. This highly competitive pricing structure provides a significant operational cost advantage for high-density computing and large-scale deployments compared to many other US markets.

Power Grid Reliability: The power grid serving the primary data center zones is well-engineered for high availability. Facilities typically receive power from redundant substations, ensuring reliable uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located with convenient access to downtown Salt Lake City and the "Silicon Slopes" tech corridor running south to Lehi. This proximity serves a high concentration of technology, finance, and research companies.

Regional Market Reach: Salt Lake City is strategically positioned to serve as a low-latency digital hub for the Intermountain West, including Utah, Idaho, Wyoming, Montana, and Nevada. It provides an effective alternative to hubs in California, Oregon, or Arizona.

Tax Advantage For Data Centers: Utah offers compelling financial benefits through its Data Center Investment Program. These programs provide multi-year exemptions on sales and use taxes for qualifying equipment and software, directly reducing capital expenditures for new builds and expansions.

Natural Disaster Risk

Salt Lake City has a High natural disaster risk profile, with a FEMA National Risk Index score of 94.21 out of 100 as of September 2025. While free from coastal threats like hurricanes, the region's primary hazards are geologic and atmospheric. Key risks for consideration include earthquake, drought, wildfire, winter weather, and avalanche. Data center site selection and facility engineering are critical to mitigate these specific regional threats.