Data Centers in Washington

Washington – Powering Innovation with Clean Energy

Washington state is a premier market for enterprises needing scalable, low-latency infrastructure with direct access to major cloud providers. Its combination of extremely low-cost, renewable hydropower and robust connectivity makes it the superior choice for high-performance computing, AI workloads, and digital content delivery to the Pacific Northwest and beyond.

Washington: At A Glance

Network & Connectivity Ecosystem

Washington's network ecosystem is one of the most developed in North America, anchored by major hubs in the Seattle area.

Carrier Density & Carrier Neutrality: With over 63 network providers, as of September 2025, the state offers exceptional choice. Data centers here provide deep carrier diversity, ensuring competitive pricing and resilient network design options.

Direct Cloud On-Ramps: The market has over 5 dedicated cloud on-ramps connecting to 12 regions, as of September 2025. Direct, private access is available to major hyperscalers including AWS, Microsoft Azure, and IBM Cloud, which is critical for hybrid cloud deployments.

Internet Exchange Points (IXPs): The Seattle Internet Exchange (SIX) is the primary peering point for the region. It provides direct, low-latency traffic exchange for hundreds of networks, improving performance and reducing transit costs.

Bare Metal: Bare metal cloud options are widely available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated servers, giving businesses full control over their hardware for performance-intensive applications.

Power Analysis

Washington is a global leader in low-cost, sustainable power, making it a top-tier destination for energy-intensive computing.

Average Cost Of Power: Industrial power averages just $0.048/kWh, as of September 2025, one of the most competitive rates in the United States. This significant cost advantage directly reduces the total cost of ownership for large-scale deployments. The grid is dominated by hydroelectric power (~67%), supplemented by nuclear and wind.

Power Grid Reliability: The power grid, particularly in key data center zones like Quincy and the Seattle metro, is well-engineered for high availability. Major facilities are supported by redundant substations and robust transmission infrastructure to meet the uptime demands of mission-critical operations.

Market Access, Business & Tax Climate

Washington offers a strategic location with a favorable business environment for technology companies.

Proximity To Key Business Districts: Data centers are concentrated near Seattle's technology core, home to Amazon and Microsoft, and in central Washington hubs like Quincy. This proximity supports the massive cloud ecosystem and provides low-latency connectivity for digital businesses across the region.

Regional Market Reach: From Washington, businesses can effectively serve the entire Pacific Northwest, Western Canada, and key markets across the Asia-Pacific region via submarine cable landing stations.

Tax Advantage For Data Centers: The state provides a significant sales and use tax exemption on data center equipment and services for qualifying facilities and their tenants. This incentive substantially lowers the capital expenditure required for building out or leasing new infrastructure.

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. This score requires careful site selection and facility engineering.

The primary risks for the region include earthquakes, volcanic activity, wildfires, and landslides. Other notable risks are winter storms, riverine flooding, and strong winds. Data centers in the state are typically built to modern seismic codes and located outside of high-risk liquefaction and lahar zones to mitigate these threats.