Data Centers in Washington

Washington – Premier Hub for Low-Cost, Green Power

Executive Summary

Washington is a top-tier market for companies requiring scalable, cost-effective digital infrastructure. The state's combination of extremely low-cost, predominantly hydropower-based electricity and a dense connectivity ecosystem provides a significant competitive advantage. This allows businesses to lower operational costs and meet sustainability goals without sacrificing performance or reach into North American and Asia-Pacific markets.

Washington: At A Glance

Network & Connectivity Ecosystem

Washington provides a rich and resilient connectivity environment, anchored by major hubs in Seattle and Quincy. The state is a critical gateway for traffic between North America and Asia.

Carrier Density & Carrier Neutrality With over 60 unique network providers operating in the state as of September 2025, businesses have extensive choice. The market features numerous carrier-neutral data centers, ensuring competitive pricing and high-quality service for colocation and interconnection.

Direct Cloud On-Ramps There are over 5 dedicated cloud on-ramps in Washington, enabling low-latency, private connections to 12 different cloud regions as of September 2025. Direct access is available to major platforms, including:

• AWS
• Microsoft Azure
• IBM Cloud

Internet Exchange Points (IXPs) The Seattle Internet Exchange (SIX) is one of the largest and most active non-profit IXPs in the world. It provides a central peering point that dramatically improves network performance and reduces transit costs for participants.

Bare Metal Bare metal server capacity is readily available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Washington stands out globally for its low-cost and sustainable power, making it a prime location for high-density computing and hyperscale deployments.

Average Cost Of Power The average industrial electricity rate is approximately $0.048/kWh as of September 2025, among the lowest in North America. This low cost is a direct result of the state's energy mix, which is dominated by hydropower (~67%). This provides a significant and sustainable reduction in a data center's total cost of ownership.

Power Grid Reliability The power grid, particularly in established data center zones like Quincy and the Seattle metro area, is well-engineered and highly reliable. Major facilities are supported by redundant power feeds from multiple substations, ensuring excellent uptime.

Market Access, Business & Tax Climate

Washington offers a favorable business environment with direct access to a thriving technology sector and strategic global markets.

Proximity To Key Business Districts Data centers in the Seattle area are located near the headquarters of global technology and aerospace giants. Facilities in Central Washington, particularly Quincy, serve the world's largest hyperscalers, creating a unique ecosystem of technical expertise and supply chain support.

Regional Market Reach From its strategic position in the Pacific Northwest, Washington provides low-latency connectivity to the entire West Coast, from Vancouver, Canada, down to Silicon Valley. It also serves as a primary network gateway for businesses connecting to markets across the Asia-Pacific region.

Tax Advantage For Data Centers Washington offers specific sales and use tax exemptions on the purchase and installation of data center equipment for qualifying facilities. This incentive directly lowers the significant upfront capital investment required to build or expand a data center footprint, improving project economics.

Natural Disaster Risk

Washington has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.22 as of September 2025. While facilities are engineered to mitigate these factors, risk assessment is critical.

The primary environmental risks for infrastructure in the region are:

• Earthquake: The state is in a seismically active zone, presenting a significant risk.
• Volcanic Activity: Proximity to active volcanoes like Mount Rainier requires specific planning.
• Wildfire: Particularly relevant for facilities in central and eastern Washington.
• Landslide: A notable risk in the state's varied terrain.
• Riverine Flooding: A concern in certain low-lying areas.