Data Centers in St. George
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St. George, Utah, USA – A Low-Cost Disaster Recovery Hub
St. George is a compelling secondary market for businesses needing a cost-effective and geographically separate disaster recovery site. Its extremely low power costs and favorable tax incentives provide a strong financial case for deploying infrastructure to serve the Mountain West region, complementing primary sites in hubs like Las Vegas or Salt Lake City.
St. George, Utah, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for disaster recovery and secondary workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Las Vegas; private network extensions are available. |
| Power Cost | $0.07/kWh – as of September 2025 | Significantly below the national average, offering major operational cost savings. |
| Disaster Risk | High (94.21 score) – as of September 2025 | Primarily environmental risks like drought and earthquake; varies from coastal/central US risks. |
| Tax Incentives | Yes | Multiple DC-specific sales, use, and property tax exemptions are available. |
| Sales Tax | 4.85% (Utah state) – as of September 2025 | Lower than many competing markets, especially with available data center exemptions. |
Network & Connectivity Ecosystem
St. George serves as a strategic point between the major connectivity hubs of Las Vegas and Salt Lake City. While not a primary interconnection market, it offers sufficient network infrastructure for production and disaster recovery workloads.
Carrier Density & Carrier Neutrality: The market contains over 3 network providers as of September 2025, offering diverse routing options. Facilities are carrier-neutral, allowing customers to bring their own preferred networks.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within St. George as of September 2025. Businesses connect to cloud providers via dedicated circuits or wavelength services to facilities in Las Vegas.
Internet Exchange Points (IXPs): Public peering is not established directly within St. George. Most network peering occurs privately between carriers or is routed through regional exchanges in Las Vegas or Salt Lake City.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like phoenixNAP can service the region.
Power Analysis
Utah's power landscape is a key advantage for data center operators in St. George, characterized by low costs and a reliable grid.
Average Cost Of Power: At approximately $0.07/kWh for industrial use as of September 2025, power costs are among the lowest in the United States. This translates directly to reduced operational expenditures, especially for high-density compute deployments. The grid is primarily powered by natural gas and coal, with a growing solar component.
Power Grid Reliability: The electrical grid serving the region's industrial zones is well-engineered to support critical infrastructure. Redundant power feeds from separate substations are common features in local data center designs.
Market Access, Business & Tax Climate
St. George combines a business-friendly environment with strategic geographic positioning to serve the southwestern United States.
Proximity To Key Business Districts: The market provides low-latency access to the growing local tech, healthcare, and logistics sectors in Southern Utah. It is strategically positioned on the I-15 corridor between Las Vegas and Salt Lake City.
Regional Market Reach: From St. George, organizations can effectively serve end-users across Utah, Nevada, and Northern Arizona. It is an ideal location for a secondary site that diversifies risk away from other Western US markets.
Tax Advantage For Data Centers: Utah offers significant financial incentives, including long-term sales and use tax exemptions on equipment purchases for qualifying data centers. These programs substantially lower the total cost of ownership for large-scale deployments.
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. The risks are distinct from those in hurricane or tornado-prone regions, centering on geological and environmental factors.
The primary risks for this area include Drought, Earthquake, Wildfire, Strong Wind, Riverine Flooding, and Heat Wave. Data center selection should prioritize facilities engineered with specific mitigations for seismic activity and fire suppression.
