Data Centers in Washington

Washington – Low-Cost Power, High-Tech Hub

Washington is a premier North American data center market, purpose-built for companies that require low-cost, sustainable power and dense network connectivity. The state's combination of cheap, renewable energy and direct access to major cloud providers allows businesses to scale efficiently while minimizing operational costs and latency to the West Coast and Asia-Pacific.

Washington: At A Glance

Network & Connectivity Ecosystem

Washington offers a rich and mature connectivity landscape, centered around the Seattle metro area. The ecosystem provides resilient, low-latency access to domestic and international markets.

Carrier Density & Carrier Neutrality: With over 63 network providers operating in the state as of September 2025, businesses have extensive choice. Most colocation facilities are carrier-neutral, offering connections to multiple Tier 1 backbones and regional networks.

Direct Cloud On-Ramps: The state features over 5 major cloud on-ramps and connects to 12 cloud regions as of September 2025. This enables secure, high-performance private connections directly to major platforms, including AWS, Microsoft Azure, and IBM Cloud.

Internet Exchange Points (IXPs): The Seattle Internet Exchange (SIX) is the primary peering hub for the Pacific Northwest. The SIX facilitates efficient traffic exchange between hundreds of networks, reducing latency and transit costs for participants.

Bare Metal: Bare metal server options are widely available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Washington's power infrastructure is a key advantage, defined by exceptionally low costs and a high percentage of renewable sources.

Average Cost Of Power: The industrial electricity rate averages $0.05/kWh as of September 2025, one of the lowest in the United States. This significant cost advantage directly reduces the total cost of ownership for high-density deployments. The state's energy mix is dominated by hydroelectric power (67%), with significant contributions from nuclear and wind.

Power Grid Reliability: The power grid, particularly in the main data center zones around Seattle and Quincy, is well-engineered and reliable. The infrastructure is supported by a stable supply of hydroelectric power, providing consistent and affordable energy for mission-critical operations.

Market Access, Business & Tax Climate

Washington provides a favorable business environment with strategic access to technology hubs and key international markets.

Proximity To Key Business Districts: Data centers are located near the major tech hubs of Seattle, Bellevue, and Redmond. This proximity serves the headquarters of global technology, e-commerce, and cloud computing giants, enabling low-latency solutions for their core operations.

Regional Market Reach: As a strategic gateway, Washington effectively serves the entire Pacific Northwest region of North America. Its coastal location and dense subsea cable connectivity also make it a critical hub for traffic between North America and Asia.

Tax Advantage For Data Centers: Washington offers a significant sales and use tax exemption on the purchase and installation of data center equipment. This incentive lowers the upfront capital expenditure required for building new facilities or deploying hardware as a tenant.

Natural Disaster Risk

Washington has a High natural disaster risk profile, with a FEMA National Risk Index score in the 93rd percentile as of September 2025. This rating reflects significant exposure to specific, well-documented geological and environmental hazards.

Key risks include earthquake, volcanic activity, wildfire, riverine flooding, and landslides. While the overall risk is high, careful site selection in geologically stable areas with modern, seismically-rated facilities can effectively mitigate these threats. Providers in the region have extensive experience engineering infrastructure to withstand these known environmental challenges.