Data Centers in St. George
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St. George – Cost-Effective Southwest US Hub
St. George offers a compelling alternative to primary markets like Las Vegas and Phoenix, providing a low-cost, business-friendly environment for disaster recovery and regional compute. Its strategic location in southern Utah delivers favorable power pricing and significant tax incentives, making it ideal for companies seeking to optimize operational expenses while serving the Intermountain West.
St. George: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; limited long-haul fiber compared to major hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to hubs like Las Vegas or Salt Lake City. |
| Power Cost | $0.07/kWh – as of September 2025 | Highly competitive pricing well below the national industrial average. |
| Disaster Risk | High (94.21) – as of September 2025 | Primarily driven by geologic and weather-related factors common to the region. |
| Tax Incentives | Yes | Multiple data center-specific programs offer sales tax exemptions and abatements. |
| Sales Tax | 4.85% (Utah) – as of September 2025 | State-level sales tax, with potential exemptions for data center equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: St. George has a focused carrier ecosystem, with over 3 providers offering services in the market as of September 2025. The primary facility provides carrier-neutral access, ensuring choice for colocation customers.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within St. George. Businesses connect to major cloud providers by procuring private network extensions (PNI or wave) to interconnection hubs in Las Vegas or Salt Lake City.
Internet Exchange Points (IXPs): Public peering is not established in St. George. Most network peering is conducted privately between carriers or managed through upstream connections in major regional markets like Las Vegas.
Bare Metal: Bare metal server availability is consistent with secondary markets. Providers such as phoenixNAP and Hivelocity can service deployments in the region, often via nearby network hubs.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the St. George area is approximately $0.07/kWh as of September 2025. This highly competitive rate presents a significant operational cost advantage compared to nearby markets in California and Nevada. Utah's power mix is primarily generated from fossil fuels (82.6%), with a growing solar component (11.6%).
Power Grid Reliability: The regional power infrastructure is well-engineered to support commercial and industrial needs. Data centers in the area are typically fed by redundant power grids and have multi-substation support to maintain high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: The market serves southern Utah's growing technology, logistics, and tourism sectors. Its location offers low-latency connectivity to businesses throughout the state and into northern Arizona and southern Nevada.
Regional Market Reach: St. George is strategically positioned to serve as a disaster recovery site or secondary compute location for organizations in Las Vegas (approx. 120 miles) and the greater Southwest. It provides a viable geographic redundancy option outside of major fault zones.
Tax Advantage For Data Centers: Utah provides substantial financial incentives for data center operators and tenants. These programs include long-term sales and use tax exemptions on equipment purchases and property tax abatements, directly reducing both capital and operational expenditures.
Natural Disaster Risk
St. George has a high Natural Risk Index score of 94.21, as of September 2025. The risk profile requires careful facility engineering and operational planning. Key risks for the area include earthquake, wildfire, drought, riverine flooding, and strong wind events.
