Data Centers in St. George
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St. George, Utah – Cost-Effective Edge & DR Location
St. George is an emerging edge data center market well-suited for organizations requiring a disaster recovery site or low-latency access to the Mountain West region. Its primary advantages are extremely competitive power pricing and significant tax incentives, making it a financially compelling alternative to larger, more expensive markets. This location provides reliable infrastructure for businesses looking to optimize operational costs while serving southern Utah, Nevada, and Arizona.
St. George, Utah: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional fiber, but limited long-haul and international carrier diversity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connectivity is available; nearest public on-ramps are in Las Vegas or Salt Lake City. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Substantially lower than the national average, providing a key operational cost advantage. |
| Disaster Risk | High (94.21 NRI Score) – as of September 2025 | Score reflects multiple regional risks; facility selection and mitigation are critical. |
| Tax Incentives | Yes | Includes sales and use tax exemptions and multi-year property tax abatements for data centers. |
| Sales Tax | 4.85% (State Rate) – as of June 2025 | Combined with local taxes, but data center-specific exemptions reduce the effective rate. |
Network & Connectivity Ecosystem
St. George is a developing connectivity market, ideal for edge and regional workloads rather than global interconnection.
Carrier Density & Carrier Neutrality The market has a focused carrier presence, with over 3 providers offering local and regional connectivity as of September 2025. Carrier-neutral facilities provide the primary access points for network services.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within St. George as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated private network connections to hubs in Las Vegas or Salt Lake City.
Internet Exchange Points (IXPs) Public peering is not established directly within St. George. The majority of network peering is handled privately or routed through the major exchange points in Salt Lake City.
Bare Metal Bare metal server options are available in the region, typically through providers that can deploy hardware into colocation facilities. Services from providers like phoenixNAP can serve the area from nearby hubs.
Power Analysis
Utah offers one of the most attractive power cost environments in the United States, a primary driver for data center investment in markets like St. George.
Average Cost Of Power Industrial electricity costs are approximately $0.07/kWh as of September 2025. This rate is significantly below the U.S. average and presents a major long-term operational savings 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 power grid supporting St. George's commercial and industrial zones is well-engineered for reliability. Data centers in the area are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
St. George provides a business-friendly environment with strategic access to key Western U.S. markets.
Proximity To Key Business Districts The market serves the growing technology and business community of Southern Utah. Its location on the I-15 corridor makes it a strategic point between the larger economic centers of Salt Lake City and Las Vegas.
Regional Market Reach St. George is well-positioned to deliver low-latency services to end-users across Utah, northern Arizona, and southern Nevada. This makes it a strong choice for content delivery, application hosting, and disaster recovery for businesses in the region.
Tax Advantage For Data Centers Utah provides highly favorable tax incentives for data center operators and tenants. These programs include long-term sales and use tax exemptions on equipment purchases and property tax abatements, which significantly reduce both upfront capital investment and ongoing operational expenses.
Natural Disaster Risk
St. George has a High natural disaster risk profile, with a FEMA National Risk Index score of 94.21 as of September 2025. This high score is driven by a combination of environmental factors common to the Intermountain West.
The primary risks for this location include:
- Drought
- Earthquake
- Wildfire
- Heat Wave
- Riverine Flooding
- Strong Wind
While the overall risk score is high, modern data centers are engineered to mitigate these factors through specific site selection, resilient construction, and redundant systems.
