Data Centers in Salt Lake City

Salt Lake City – High Performance Intermountain Connectivity

Salt Lake City serves as the primary digital crossroads for the Intermountain West, providing a cost-effective alternative to coastal markets without sacrificing performance. This market is ideal for enterprises requiring low latency access to both the West Coast and Central United States while maintaining high levels of physical security.

Salt Lake City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features a diverse ecosystem of over 15 providers as of December 2025. This carrier neutral environment allows for competitive cross connect pricing and resilient multi-homed network architectures for mission critical workloads.

Direct Cloud On-Ramps: There is over 1 local on-ramp as of December 2025, enabling high speed access to Google Cloud (GCP) regions. For other major cloud providers, private connectivity via dedicated waves or software defined networking provides reliable pathways to major hubs in the Western United States.

Internet Exchange Points (IXPs): Regional peering is facilitated through local exchanges that aggregate traffic to reduce latency and transit costs for content delivery. Most peering remains private or connects back to major West Coast hubs.

Bare Metal: High performance bare metal services are widely available through providers such as phoenixNAP and Hivelocity. These options offer rapid deployment for compute heavy workloads that require dedicated resources.

Power Analysis

Average Cost Of Power: The industrial electricity rate is approximately $0.07/kWh as of December 2025. This pricing provides a significant operational advantage for power hungry deployments compared to neighboring California markets. The grid relies on a mix of fossil fuels and growing renewable sources.

Power Grid Reliability: Data center corridors in this region benefit from a well-engineered grid with redundant transmission paths and multi-substation support. Reliability remains high due to consistent infrastructure investment by regional utility providers.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near the Silicon Slopes tech corridor, providing immediate proximity to a high density of software and financial services firms. This ensures minimal latency for locally hosted corporate applications.

Regional Market Reach: As the dominant tech hub between Denver and the West Coast, Salt Lake City serves as a critical distribution point for the entire Intermountain West. It effectively reaches populations across Utah, Idaho, Nevada, and Wyoming with millisecond precision.

Tax Advantage For Data Centers: Utah offers substantial financial benefits through sales and use tax exemptions on infrastructure equipment for qualifying enterprise data centers. These incentives help operators reduce capital expenditures during hardware refresh cycles.

Natural Disaster Risk

Salt Lake City has a FEMA NRI Score of 94.2, resulting in a High risk rating as of December 2025. While the city is inland and free from coastal threats, infrastructure managers focus on mitigating several specific regional hazards. Facilities in the region are typically constructed to meet strict seismic standards.

The primary natural hazards for this market include:

• Earthquake
• Wildfire
• Winter Weather
• Tornado
• Avalanche
• Cold Wave

Other hazards such as drought and lightning are present but considered minor for modern, purpose-built facilities. Dedicated infrastructure protection and reliable cooling systems are standard to manage these risks.